1. Negatives
1.1. -Complex communication between franchise networks. -Decisions are made by franchisees. -Compliance with commitments. -Lower profit per point of sale. -Non-hierarchical relationship between franchisor and franchisee.
2. Corporations
2.1. Express Travel Company.
2.1.1. Offering travel services to anywhere in El Salvador.
2.2. Positives
2.2.1. -The Corporation is an independent entity. -Owners have limited liability. -Easier to raise capital. -Easy to transfer ownership. -Certain expenses are tax deductible. -Corporations have perpetual lives.
2.3. Negatives
2.3.1. -Double taxation of the profits of the corporation. -Lawyers charge more to form a corporation. -States have higher rates. -More state and federal regulations and supervision.
3. Franchise
3.1. SUBWAY
3.1.1. Offering different sandwiches, salads, pizzas and drinks of all flavors.
3.2. Positives
3.3. -Fast growth. -Less need for staff. -Less investment. -Reduction of commercial and financial risk. -Obtaining economies of scale. -Better management of the point of sale. -Fewer control systems. -Greater involvement in the business by the franchisor
4. Sole Proprietorship
4.1. A Dairy Company.
4.1.1. Dedicated to the sale of dairy products
4.2. Positives
4.2.1. Only the owner makes the decisions of the company. -Tax reporting facility. -Financial responsibility.
4.3. Negatives
4.3.1. Unlimited personal liability
4.3.2. Too much pressure to perform work activities
4.3.3. Difficult to raise money
5. Partnership
5.1. Mexican food restaurant.
5.1.1. Where exquisite Mexican dishes are offered and a cozy atmosphere.
5.2. Positives
5.2.1. Combine resources such as business type experience.
5.2.2. Greater ability to analyze and make decisions.
5.2.3. To be able to distribute functions and tasks.
5.2.4. Sharing responsibilities, one will not have to be aware of everything.
5.2.5. Decreased risk
5.2.5.1. -Personal conflicts. -Possible problems in decision making. -Share the benefits of the business. -Share the recognition, in the event that the business reaches success. -The other partner may lack good judgment and make poor decisions.