Understanding business 10th chapter 5b how to form a business

Partnerships
LG2

OTHERS FORMS OF PARTNERSHIPS

• Master Limited Partnership Master (LPM) - Consists of
having a general partner who is responsible for running the
partnership, and having individual investors who are limited
partners. Looks much like a corporation, but is taxed like a
partnership and thus avoids the corporate income tax.

• Limited Liability Partnership (LLC) - Domestic LLCs may

be managed by one or more managers or one or more
members. Members are only responsible for losses, up to the
amount they invest and those they supervise. A California LLC
generally offers liability protection similar to that of a
corporation but is taxed based on the number of members.

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Advantages of
Corporations
LG3

HOW OWNERS AFFECT
MANAGEMENT
Owners / Stockholders
(select Board of
Directors)
Board of Directors
(hire Officers)

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Advantages of
Corporations
LG3

The BIG BOYS of BUSINESS
1)

2)
3)
4)
5)

Walmart
Kroger
Walgreens
Home Depot
Target

About.Com - Retail Industry - 2013

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PRIVACY PLEASE

Advantages of
Corporations
LG3

The 10 Largest Private Corporations in the U.S.
COMPANY

STATE

INDUSTRY

Cargill

MN

Farming

Koch Industries

KS

Chemicals

Bechtel

CA

Construction

Mars

VA

Food, Drink & Tobacco

PricewaterhouseCoopers

NY

Business Services & Supplies

Pilot Flying J

TN

Convenience Stores & Gas

Publix Super Marts

FL

Food Markets

Love’s Travel Stops &
Country Stores

OK

Convenience Stores & Gas

Ernst & Young

NY

Business Services & Supplies

Reyes Holding

IL

Food, Drink & Tobacco

www.forbes.com 2014

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Advantages of
Corporations
LG3

EVEN the BIG GUYS MAKE MISTAKES

COMPANY

BAD MOVE

Apple Maps

Launched in September 2013, was a disaster, giving terrible directions,
missing railway stations, and Dublin Ireland was given a new airport.

Atari

Amount of Surplus from a bad game was so big, that it had to be buried in a
New Mexican landfill.

Blockbuster

Passed on a partnership with Netflix, and went bankrupt.

Hostess

CEO cuts everyone’s salary, but his own, and goes bankrupt.

Coca Cola

New Coca only lasted 77 days due to 1500 complaint calls a day.

Shoebox
Cards

Stuff like, don't mention breasts on cards for 13-year-old girls. And don't
imply that big breasts will get you diamonds from rich boyfriends.

Denny’s
Obamacare
Surcharge

John Metz, a 40-store manager, promised to add a 5% surcharge to
customer bills to help pay for Obamacare. He even suggested customers
reduce tips to their servers in order to pay surcharge. 
This created a mess for Denny's and Metz. Customer backlash was intense,
and other franchisees not involved with issue reported sales drop. Metz
apologized regretting his statement after being spoken with by Denny’s CEO.

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