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3.1 Business Organizations

3.1 Business Organizations. Persons and Organizations that use or represent the Factors of Production Business Organization Profit seeking enterprise that serves as the main link between scarce resources and consumer satisfactions Compete with each other. Economic Institutions. What is it?

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3.1 Business Organizations

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  1. 3.1 Business Organizations

  2. Persons and Organizations that use or represent the Factors of Production • Business Organization • Profit seeking enterprise that serves as the main link between scarce resources and consumer satisfactions • Compete with each other Economic Institutions

  3. What is it? • How big are they? • Are they profitable? Sole Proprietorship

  4. Is it difficult to start one? • What do I do? • Yeah, but I bet there’s lots of red tape and fees and stuff, right? Right? Sole Proprietorship - Formation

  5. What is the goal of my business? • What am I going to sell? • Where is my headquarters going to be? • Where am I going to get my products? • What type of consumers am I going to target? Sole Proprietorship – Ask Yourself

  6. Easy to start! • Relatively easy to manage! • You don’t have to share! • You don’t have to pay business income taxes! • It feels good to be your own boss! • When you want to quit, you can just quit! Sole Proprietorship - Strengths

  7. UNLIMITED LIABILITY!!!! • Tough to get that money! • Size • How do I run this thing again? • Why doesn’t anyone want to work for me? Sole Proprietorship - Weaknesses

  8. What is it? • Are they profitable? • Are there different types? Partnerships

  9. Seems like it’d be easy to start… I think? • There’s probably some legal mumbo jumbo involved I bet. Partnership –Formation

  10. Who is involved with your company? • How is the deal going to be drawn up? • How will decision be made? • What is your business going to sell? • Who is your business going to target? Partnership- Ask Yourself

  11. Similar to Sole Proprietorships • Yeah but what are the differences? I’m sure there are some right? Partnership – Strengths

  12. Who’s in charge here? • Limited Partnership = Limited Liability • Ugh! I can’t stand that guy! Partnership - Weaknesses

  13. I bet there is a bunch of those! • What exactly is it? Corporations

  14. Seems like a suit and tie kind of thing • Incorporate • What’s that stock thing all about? Corporations – Formation

  15. Who owns the company? • Can I? That’s a pretty big commitment… • Where does stock play in? Corporations – Structure

  16. CEO – Mr. Elder • Stock Holders – Each of you has purchased one share of stock guess who has the other 50 percent of shares! • Elect a Board of Directors (3 people) • Now what happens? Corporations – Ask Yourself

  17. Super Easy to Raise Capital • We want winners! • LIMITED LIABILITY • We’ll be around forever, and ever, and ever, and ever… Corporations – Strengths

  18. Hope you have boat loads of cash! • Can you hear me now? • Ugh taxes! • That government is always steppin’ on my toes! Corporations- Weaknesses

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