Professional Documents
Culture Documents
Forms of Business
Forms of Business
Partnership
Corporation
A form of business
ownership in which
two or more people
share the assets,
liabilities, and profits.
Strategic alliance:
According to "An Overview of Strategic
Alliances," Apple has partnered with Sony,
Motorola, Phillips, and AT&T in the past. Apple
has also partnered more recently with Clearwell
in order to jointly develop Clearwell's E-
Discovery platform for the Apple iPad. E-
Discovery is used by enterprises and legal
entities to obtain documents and information in
a "legally defensible" manner, according to a
2010 press release.
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Advantages of partnerships
Shared decision making and management
responsibilities.
Easier to raise capital than in a sole
proprietorship.
Few government regulations.
Business losses are shared by all partners.
Equity
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Impact of Ownership on Risk
Risk represents uncertainty about the
firms future earnings
Depends on future revenues and expenses
Sole proprietorships tend to be riskier
than larger businesses, such as
partnerships and corporations.
Limitedfunding restricts ability to diversify
and spread business risk