Ownership

Course: BMS

Different types of ownership

Individual Ownership Partnership Corporation Group or Chain Employee Ownership Vertical Ownership Joint Operation

Individual Ownership
Advantages : 1. The editor-propreitor enjoys absolute control. 2. The owner is the main decision maker. 3. The owner receives the main profit. 4. The owner is totally attached with the newspaper also in the mind of the consumers.

 Disadvantages: 1. Not adaptable for expanding business. 2. Unlimited liability. 3. Success of the newspaper depends heavily on the ability and the credit status of the owner. 4. In case of owners death the paper suffers badly. 5. The propreitor is always liable for debts of the paper, even to the extent of his personal possessions.

Partnership
Advantages: 1. Persons of different capabilities & financial standings are permitted to pool their talents & money. 2. Responsibilities are divided. 3. Judgment of more than one mind is taken into consideration.

 Disadvantage: 1. each partner is liable for newspapers entire debt. 2. Long term credit is hard to attend. 3. Partnership discontinued 4. Irresponsible partner may jeopardize the interest of other partners. 5. Risk factor.

Corporation
Advantage: 1. The personal liability of investors in case of lawsuit is limited to their share of interest in the corporation. 2. Transfer of control in flexible. 3. Operations can be increased easily by increasing capital. 4. The business of the paper is not readily affected by changes in the stock ownership.

 Disadvantages: 1. Rigorous federal and State regulations require detailed reports at frequent intervals. 2. Taxes are imposed. 3. Profits are distributed to stockholders first are taxed as income to the corporation & again dividends to the stock holders.

Group or Chain ownership

Advantage: 1. Supplies may be purchased through a central office with discounts for quantity. 2. Advertising space may be sold Nationally. 3. Accounting methods can be standardized. 4. Detailing.

 Disadvantages: 1. Managers or publishers might not feel compelled to promote the paper in certain areas. 2. Permanence of management is more in question. 3. Subscribers may fail to relate with the newspaper.

Employee Ownership
Advantages: 1. Employees are given an incentive to protect the best interest of the paper. 2. Sense of ownership on the part of the employees help to develop. 3. Interdepartmental barriers are more easily broken. 4. Questions related to wages, hours, etc are easily solved.

 Disadvantage: 1. Length of employee service gets more importance. 2. Sentiment may prevail over good judgment in matters of management & policy. 3. Entry for fresh people becomes difficult. 4. Sale of property becomes difficult.

Vertical Ownership
Advantages: 1. Provide the newspaper with certain services & materials needed for its successful operation. 2. Helps to reduce the general expenses of newspaper production. 3. Provides practical investment of newspaper profits. 4. Ties with other communications.

 Disadvantages: 1. Less attention for newspaper. 2. Capital that can be used for the newspaper business might be drawn to somewhere else.

Joint Operation
Advantages: 1. Maintenance and operation costs are reduced. 2. Productive hours increased. 3. Relationship. 4. Attention of publishers and owners is more on the community than on the competition. 5. Good service to the community. 6. Joint handling of advertising.

 Disadvantage: 1. With competition partly eliminated efforts toward specific improvement might be less. 2. With less competition, publishers might strive for greater profit. 3. Use of common production facility might lead to standardization.