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Manufacturing
Methods
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Manufacturing usually
gives an image of mass production and assembly lines. However, because
of the large amounts of products needed by the market, several different
types of manufacturing systems exist.
Types of systems
adopted by today's industry include Continuous, Intermittent, Custom and
Just-in time (JIT). Factors such as the amount that is required to be produced,
input availability, type of product and it's expected life cycle will all
determine the type of manufacturing system used for production.
Go to this site for
a discussion of manufacturing systems. http://education.leeds.ac.uk/~edu/technology/pages/prodgnvq.htm |
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Types
of Ownership
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| There are three
basic business structures that are appropriate for a small business, sole
proprietorship, partnership
and corporation. |
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| Sole
Proprietorship |
| A business with
openers (or husband and wife) performing the duties of owner, manager and
employee. |
The Advantages
-
one person making the
decisions
-
lack of regulatory or
reporting requirements
-
no double taxation.
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The disadvantages
-
owner is subject to
unlimited personal liability
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liability cannot be
limited to a predetermined portion of assets
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the business is subject
to termination upon the death or incapacity of the owner
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all profits of the business
are taxed as income to the proprietor
the capital of the
business is limited to the assets of the owner
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| Partnership |
| An association of
two or more individuals who are co-owners of a business for profit. Two
types of partnerships recognized in the United States. General partnership
- partners share equally
in liability Limited partnership - "limited"
partner’s liability is restricted to a predetermined amount |
The Advantages
-
flexibility
-
partners can define
their relationship in almost any way they desire
-
a greater likelihood
to raise more capital
-
the ability to spread
taxable income through many partners
preclusion of any
person from becoming a partner without consent of all partners
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The disadvantages
-
unlimited personal liability
for each partner
-
liability for actions
by other partners
partnership is dissolved
when any general partner ceases for any reason to be a partner
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| Corporation |
| An association of
persons created by statute as a separate legal entity with centralized
direction and limited financial commitment.
limitless number of
passive investors
favored form of a business
avoids the corporate
income tax and corporate losses, which can be claimed by the shareholders
generally allotted the
same legal characteristics as other corporations
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The advantages
-
ability to save on taxes
and retain a larger percentage of the profits
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limited liability of
the shareholders for the debts of the business
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shareholder is only
exposed to the extent of the value of his or her stock
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free transferability
of ownership
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duration of a corporation
is perpetual
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The disadvantages
-
corporations can be
sued
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formalities of reporting
and regulation management
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control is separate
from ownership
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minority shareholders
are subject to the whims of the majority shareholders
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Go here
for a more detailed description of sole proprietorship, partnership
and corporation excerpted from West's Encyclopedia of American Law.
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Go
to activity 001_03a (A new window will appear)
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