Fundamental Concepts of Business Ownership

1. Fundamental Concepts ofBusiness Ownership Entrepreneurial Ventures – Building A Business

2. Georgia Performance Standardsaddressed from this unit MKT-EN-2: Explain the fundamental concepts of business ownership. • Determine the relationship of competition to our private, free enterprise system. • Explain the effects of competition on buyers and sellers.

3. What did we find? b) Explain the effects of competition on buyers and sellers. • Competition helps buyers because when businesses compete, they try to provide the best products and the lowest prices possible. • Competition forces sellers to be innovative and compete based on their best – not by cheating or unfair practices. a) Determine the relationship of competition to our private, free enterprise system. • We learned that honest and fair competition between businesses force owners to continually improve their products and services. Business owners are free to be as successful as they possibly can – as long as they operate within the law.

4. Georgia Performance Standardsaddressed from this unit MKT-EN-2: Explain the fundamental concepts of business ownership. • Identify the common types of business ownership. • Compare and contrast the advantages and disadvantages of each type of ownership.

5. What did we find? • Identify common types of business ownership. • We know that a one-person show is a sole-proprietorship, • Two or more people sharing responsibility and little separation from the company are in a partnership, and a • Corporation is owned by stockholders, who are completely separate from the business.

6. What did we find? • Compare and contrast the advantages and disadvantages of each type of ownership. • Sole proprietors have all of the control & all risk. If the business suffers loss, the owner’s personal property can be taken if the business doesn’t have any way to pay. NO separation at all between owner and business. If the business needs money, the SP has to use his own or borrow from the bank. • Partnerships are much the same as Sole Proprietorships but with more owners. Not much separation from the business. All partners contribute money to get the business started so there is more money available than just what one person can provide. Partners share profit and share losses.

7. What did we find? • Compare and contrast the advantages and disadvantages of each type of ownership. • Corporations are owned by many people, usually, and they are called stock holders or share holders. • Money is raised by selling stock to many. So getting money when needed is usually not a problem. • Owners and company are totally separate from the other. • Profits are shared by all owners in the form of dividends.

8. Georgia Performance Standardsaddressed from this unit MKT-EN-2: Explain the fundamental concepts of business ownership. • Explain relevant government regulations relating to the operation of a business.

9. What did we find? • Explain relevant government regulations relating to the operation of a business. • We know that the FTC, Federal Trade Commission, is in place to patrol all business practices to make sure they are playing fair when competing against each other. • Anti-trust laws have been around for over 100 years. • Anti-trust means ‘no ganging up’ on other businesses to smother out competition. • price-fixing, monopolies, and some mergers (not all) are just a few of the bad behaviors the FTC watches for.

10. Georgia Performance Standardsaddressed from this unit MKT-EN-2: Explain the fundamental concepts of business ownership. • Discuss the types of risks that businesses encounter. Each time you operated your retail convenience store, you ran the risk of taking losses (we named three possibilities in which you could incur losses). In class, you named: Shoplifting, Expired Goods, and Losing Sales as the primary risks that you took each day.

11. Georgia Performance Standardsaddressed from this unit MKT-EN-2: Explain the fundamental concepts of business ownership. g) Explain how businesses deal with the various types of risks. To deal with • shoplifting ~ you moved products to safer places in the store • Expired goods ~ you lowered your reorder amounts, lowered prices, and moved products to more noticeable places • Losing sales~ you increased promotions, you lowered prices, and monitored competition

12. Georgia Performance Standardsaddressed from this unit MKT-EN-2: Explain the fundamental concepts of business ownership. • Identify the market segment for the business. • Formulate a marketing mix designed to reach a specific market segment

13. What did we find? • Identify the market segment for the business. We found by surveying the people in the area, we discovered the age of our people, what they liked to buy, what times they shopped, and even when they listened to the radio.

14. What did we find? • Formulate a marketing mix designed to reach a specific market segment We prepared our marketing mix according to: Products – we know what our customers buy Price – we know what price margin works Place – we carry products for this place/people Promotion – we know how to reach our market through various promotional means. 4 p’s of a marketing mix!!! 4 P’s of a marketing mix!!

15. Georgia Performance Standardsaddressed from this unit MKT-EN-2: Explain the fundamental concepts of business ownership. • Utilize the marketing functions to determine the competitive advantage of the purposed business.

16. What did we find? • Utilize the marketing functions to determine the competitive advantage of the purposed business. In other words, why would all of the choices and decisions we made while operating our retail convenience store, give our store an advantage over our competition?

17. You made many choices and decisions in each of these areas of marketing. Just name one decision you made from each area that helped your store to operate better than before:

18. We will complete this unit by addressing the last GPS to cover. Click here Georgia Performance Standard left to cover