This document discusses various forms of business ownership including sole proprietorships, partnerships, corporations, and additional special forms. It defines each form and provides their key advantages and disadvantages. Main forms discussed include sole proprietorships owned by one person, partnerships as a voluntary association of two or more individuals, and corporations as an artificial entity created by law that can raise capital through selling stock. Additional special forms covered are S-corporations that are taxed as partnerships, limited liability companies that combine benefits of corporations and partnerships, and not-for-profit corporations organized to provide services rather than earn profits. Cooperatives, joint ventures, and syndicates are also briefly outlined as additional less common forms of business ownership.

1. Aysel Muradli
Firuza Safarova
Sama Belyani
Nigar Zeynalova

2.  Main forms of
business ownership
 Special forms of
business ownership
 Additional forms of
business ownership
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3. 3
Main forms
Sole
proprietorship
Partnership Corporation

4.  Definition
A business that is
owned by one
person.
 Most common in
retailing, service, and
agriculture.
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•Sole proprietorship
•Partnership
•Corporation

5. Advantages
•Ease of Start-up and
Closure
•Pride of Ownership
•Retention of All Profits
•Flexibility of Being
Your Own Boss
•No Special Taxes
Disadvantages
•Unlimited Liability
•Lack of Continuity
•Lack of Money
•Limited Management
Skills
•Difficulty in Hiring
Employees
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•Sole proprietorship
•Partnership
•Corporation

6.  Definition-
A voluntary
association of two
or more people to
act as co-owners of
business for profit
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•Sole proprietorship
•Partnership
•Corporation

7.  General Partnership
Both Partners are liable for everything the business
does
 Limited Partnership
One or more general partners manage the business,
limited partners invest money
o Master limited partnership
Owned and managed like a corporation, but often
taxed like a partnership
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•Sole proprietorship
•Partnership
•Corporation

8. Advantages
• Ease of Start-up
• Availability of Capital
and Credit
• Personal Interest
• Combined Business
Skills and Knowledge
• Retention of Profits
• No Special Taxes
Disadvantages
• Unlimited Liability
• Management
Disagreements
• Lack of Continuity
• Frozen Investment
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•Sole proprietorship
•Partnership
•Corporation

9. Definition- An artificial person created by law,
with most of the legal rights of a real person.
1. Closed Corporation
Stock is owned by relatively few people and is not
sold to the general public.
2. Open Corporation
Stock can be bought and sold by any individual.
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•Partnership
•Corporation
•Special forms

10. Advantages
• Limited Liability
• Ease of Raising Capital
• Ease of Transfer of
Ownership
• Perpetual Life
• Specialized Management
Disadvantages
• Difficulty and Expense of
Formation
• Government Regulation
and Increased Paperwork
• Conflict within the
Corporation
• Double Taxation
• Lack of Secrecy
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•Partnership
•Corporation
•Special forms

11. S-corporation
LLC
Not-for-profit
corporation
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12. S-corporation
Corporation
(limited
liability)
Partnership
(tax)
S
corporation
A corporation that is taxed as
though it were a partnership.
•Main forms
•S-Corporation
•LLC
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13.  No more than 100 stockholders
 There can be no nonresident-alien
stockholders
 All stockholders must agree to the decision to
form S-corporation
S-corporation
Double taxation
Limited liability
Restriction on the number of owners/stockholder
•Main forms
•S-Corporation
•LLC
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14.  A form of business ownership that combines
the benefits of a corporation and a
partnership while avoiding some of the
restrictions and disadvantages of those forms
of ownership
Limited-liability
companies
Double taxation
Limited liability
Restriction on the number of owners/stockholder
•S-Corporation
•LLC
•Non profit
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15.  A corporation organized to provide a social,
educational, religious, or other service rather
than to earn a profit.
 Top 5 successful non profit organizations
 United Way
 Feed the Children
 Gifts in Kind
 Americares
 The Red Cross
Not-for profit
corporations
•LLC
•Non-profit corp.
•Additional forms
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16. Cooperatives
Joint venture
Syndicates
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Additional Forms of Business
Ownership

17.  A cooperative is an association of individuals
or firms whose purpose is to perform some
business function for its members.
 In Azerbaijan, coorperatives are mainly
formed in agriculture sector.
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•Special forms
•Coorperatives
•Joint Venture

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&
•Coorperatives
•Joint Venture
•Syndicates
A joint venture is an agreement between
two or more groups to form a business
entity in order to achieve a specific goal or
to operate for a specific period of time.

19.  A syndicate is a temporary association of
individuals or firms organized to per-form a
specific task that requires a large amount of
capital. Syndicates are used most commonly
to underwrite large insurance policies, loans,
and investments.
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•Coorperatives
•Joint Venture
•Syndicates

20. Thank you for attention
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