Introduction:

You've probably started thinking about your SharkTankLinks to an external site. pitch (see Module 2 for more details) . Success in business is predicated on great ideas, but what does it take to launch that "great idea"? Executives have to create an entity (the actual business) that will best suit their needs while providing the foundation pursuing success. In this module, we will discuss different forms of business ownership such as sole proprietorships, partnerships and corporations and we'll compare the advantages and disadvantages of each.

Would you prefer to go it alone as a sole proprietorship, or do you want others to share your burdens and challenges in a partnership? What is a limited liability corporation, and does it make more sense?

There are many other questions you need to consider:

Will you need financing? How easy will it be to obtain? Will you attract employees? How will the business be taxed, and who will be liable for the company’s debts? If you choose to share ownership with others, how much operating control will you maintain, and what costs would be associated with that decision?

What You Will Learn

By the end of this module, you will be able to:

Describe the advantages and disadvantages of the sole proprietorship form of business organization and provide examples.
Compare and contrast the advantages and disadvantages of operating as a partnership, and list the risks for partners.
Identify and discuss the major types of corporations and develop a method for recommending which type is best.
Examine what makes franchising a preferable form of organization for some types of business, and explain the advantages and disadvantages of a franchise.
Explain how mergers and acquisitions contribute to a company’s overall growth.
Discuss current events and apply forecasting techniques to predict evolving trends that may affect the business organizations of the future.

What You Will Do

To demonstrate your learning, you will complete the following activities:

Read Chapter Four in your online text.
"Why Convert to an LLC?" Watch the video. Why do it?
https://www.youtube.com/watch?v=yKp6zl-sKqLinks to an external site.
"How is an SCorp taxed? Watch https://www.youtube.com/shorts/cyTUSV0OdN4Links to an external site.
Read "Which Franchises Grew the Most in 2025?"Links to an external site.
Submit 4.4. Chapter 4: Lecture Quiz
Complete 4.5 Chapter 4: In-Class Activity/ Should I convert to an S Corp?