Matakuliah : J0084 / Introduction to Management
and Business
Tahun
: 2007
Versi
:1/3
Pertemuan 18 (Eighteenth Meeting)
Selecting Type of Business
Ownership
Halaman 1
Learning Outcome
Student should be able to show the types of
business, and also understand
how to measure
business performance -> C3
Halaman 2
Learning Outline
• Sole Proprietorship
• Partnership
• Corporation
• The Affect of Proprietorship Toward Return
and Risk
• Obtaining the Ownership of Existing Business
Halaman 3
1. Sole Proprietorship
a. Advantages of Sole Proprietorship:
1) All profit belongs to individual proprietor
2) Simple organization
3) Complete control
4) Low Tax Rate
Halaman 4
b. Disadvantages of Sole Proprietorship:
1) Responsible to total losses
2) Unlimited responsibility
3) Limited financial access
4) Limited skill
Halaman 5
2. Partnership
a. Advantages of Partnership:
1) Additional funding
2) Division of losses
3) More specialization
Halaman 6
b. Disadvantages of Partnership:
1) Division of control
2) Unlimited responsibility
3) Division of profit
Halaman 7
3. Corporation
a. Advantages of Corporation:
1) Limited responsibility
2) Financial access
3) Transfer of ownership
Halaman 8
b. Disadvantages of Corporation:
1) High organizational cost
2) Financial transparancy
3) Agency problem
4) High tax rate
Halaman 9
4. The Affects of Ownership Toward
Return and Risk
a. The Impact of Ownership to Return on Equity
Profit after Tax
ROE =
Equity
$ 150.000
ROE =
$ 1.000.000
ROE = 0,15 OR 15%
b. The Impact of Ownership to Risk
Halaman 10
5. Gaining the Ownership of Existing Business
a. Taking over the family Business
b. Buy an existing business
c. Franchise
Halaman 11
Franchise
1) Types of Franchise:
a) Distributorship
b) Chain style business
c) Manufacturing arrangement
Halaman 12
2) Advantages of Franchise:
a) Proved management style
b) Popular name
c) Financial support
Halaman 13
3) Disadvantages of Franchise:
a) Division of profit
b) Less of control
4) Popularity of Business to Business
Franchise
Halaman 14