FOUR SYSTEMS OF DOING PRIVATE BUSINESS*


 Phases
Why is business started?

What is done by business
 firms?
How is business started


 Individual
Plovidh service and in-
 comea foi olcrator.
Buxs, sells, oa plodulces.
 goods and services
Deci sl(lll il individual oi
 linlltiit.c'e


With whom is business IThe pibll,
 done?
Who owns the business' The individual


Whit is contributed by
 the owner

fow is the nl;in;lagnicn
 selected
Hlow is voting done?


Who decides on pomlies1
Who performs the
 functions?
What is prni. and
 margin polley?


Tli e ildl'ld Lital putsn in
 (anital and personal
 effort.
By thd Indidnal

\one necessary


The InhllduLia]
IThe din dulial or
 employees,
llDepend laiuelv on com
 petition As wide as
 proftlable operations
 POTH111.


How is net income used? As desired hi individual


What is owner's habilitv All property of individual
 for debts of business e"e'pthng legal e~cemp
 tions
Ilow is busmess Death, disablity, bank-
 terminated? luptey, or retirement
 01 ownel


I Partnership Coiporation Cooperative
Piovide service and in- Plivide se vLce and ob- Provide sc vlcc, LItg
 come Ifo paitneis tain profit for investors returns to patrons
, huss, selsl, or propduceso es B, ell o poduces B sll, or prodnes
 goods and services goods and services goods and services
 Contact between the Olganizalton ,ild nicor- OrgainiaUion and lmai-
 parties poation iy stockholders pnrotion ly me iibei
 The pubhc lie publhhic. Inoidnally Chlefly witllh membiis but
 wllh stockholde rs I oftin l thi other also
 Txo ol movie individual Thi stokhloldrs No Inn- lcmbiia -trons. LI-
 it oil stock ownership, ild shlr ownership
 Each pr.lrli Ii.,y con- Claptal in the amlloin Capital in shares, fees. 01
 ihulte capial, or per paid foi the stock retains, plus pationage
 sonal ifforl, ir lothi
 By agreement of the Slot.kholdeis elect board Members elect board of
 partners of dii tin, diortur
 Usually b inflormaln UaIlly one vote hoi each Usually one-man-one-
 agicmnent slina ot stLok Proxy vote No voting ha i
 voting pelrintled. pro\,"
 The partners "l he board of dirlntos 'The board of direetns
 OI'e or botli the paitnerst Emploees lo E ees
 and employee(.
 Depends gely on 1- depends largely tin com- Operatins at t c to p.i-
 petliion. A!, wide as petition As xidel as trons Attempt to n.r-
 profitable operations profitable operations lw margins
 Permit neinlt


As agiced upon by pa- Dividends to stockholders
 tron 0o reserves and surplus


All piopertv of all part
 neis, excepting legal


Assets of the corporation,


 exemptions
Death of aLny partner, Bankruptcv or Iegl dcs-
 bankniptey, or decision solution of company,
 to dissolve


Patronage dividends or
 reserves and expansion
 LIim dv ion capital
Assets of the cooperative


Bankruipte, or legal ds-
 soluition of coopciative


SBased largely' on a similar table prepared by Farm Credit Admnistration