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Business Organizations

Business Organizations. Which type of business organization would you prefer to set up if you were starting a business?. SSEMI4 - The student will explain the organization and role of business in the U.S. economy.

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Business Organizations

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  1. Business Organizations Which type of business organization would you prefer to set up if you were starting a business?

  2. SSEMI4 - The student will explain the organization and role of business in the U.S. economy. • A. Compare and contrast three forms of business organization—sole proprietorship, partnership, and corporation.

  3. Warm Up • Why do people start their own businesses? List as many possible reasons as you can think of. Use your chart from Friday. • Put notes away and clear off desk. • It’s time to play, “What the *&#@ did he just say?”

  4. Sole Proprietorship – Run by one person • STRENGTHS • Most common form of business and easiest to start • Don’t have to share the profits • Don’t have to pay business income tax • Psychological benefit • Easy to get out of business

  5. WEAKNESSES • Unlimited Liability – 80% rule • Why do people start business despite this fact? • Problems raising financial capital • Problems being efficient with lack of inventory • Often lack managerial experience • Can’t attract qualified workers

  6. Take out notes • 90 second pair and share – recall as many strengths and weaknesses as you can. • Clear off desk

  7. Partnership • Owned by two or more people • General liability (involved in management and finances) or limited liability (just financial involvement) • STRENGTHS • Often have articles of partnership that spells out responsibilities of each partner • Both people bring different talents and ideas • Easier to get capital • Attract top talent because they are larger

  8. WEAKNESSES • Partners are responsible for the actions of each other • Business may end if a partner leaves • Potential conflict among partners

  9. Take out notes • 90 second pair and share – recall as many strengths and weaknesses as you can

  10. Corporations • With a partner and by using pages 59 – 62: you fill in the strengths (5) and weaknesses (4) for corporations. 15 MINUTES

  11. Corporations

  12. Homework – FOR A TEST GRADE!! • Due Friday September 7th • Interview a sole proprietor or a partnership owner and: • Describe the business – what is sold, how it is operated, etc. • Find from the owner his/her thoughts on the strengths and weaknesses of it and how they overcome the weaknesses. Use your notes in discussing the strengths and weaknesses. • NO BULLET POINTS; WRITE A FULL REPORT!!

  13. Read page 67 • Answer the two questions on that page after reading

  14. Ticket Out the Door • Using our work today – answer the E.Q. and provide 4 to 5 reasons to support your answer.

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