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5-1 Business in the U.S. Economy 5-2 Forms of Business Ownership

C H A P T E R. 5. Economic Decisions and Systems. 5-1 Business in the U.S. Economy 5-2 Forms of Business Ownership 5-3 Organizational Structure for Businesses. 5-1 Business in the U.S. Economy. Goal 1 Describe the changing status of U.S. employment.

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5-1 Business in the U.S. Economy 5-2 Forms of Business Ownership

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  1. C H A P T E R 5 Economic Decisions and Systems 5-1 Business in the U.S. Economy 5-2 Forms of Business Ownership 5-3 Organizational Structure for Businesses

  2. 5-1 Business in the U.S. Economy Goal 1 Describe the changing status of U.S. employment. Goal 2 Discuss the role of business in the U.S. economy. Goal 3 Describe three major types of businesses.

  3. KEY TERMS • contingent worker • intermediary • service business

  4. THE CHANGING U.S. JOB MARKET • Employment data • Pressures on employees

  5. Checkpoint  • List several groups that will increase as a percentage of the total U.S. workforce in the next decade. • Younger workers (16–24 years of age) • Asian-, Hispanic-, African-American groups • Women

  6. BUSINESS AND THE ECONOMY • Size of U.S. businesses • Roles of business • Impact on a community

  7. PERCENT OF BUSINESSES BY EMPLOYEE SIZE

  8. BUSINESS ACTIVITIES • Generating ideas • Raising capital • Employing and training personnel • Buying goods and services • Marketing goods and services • Maintaining business records

  9. Checkpoint  • What are the basic activities completed by all businesses? • Generating ideas • Raising capital • Employing and training personnel • Buying goods and services • Marketing goods and services • Maintaining business records

  10. TYPES OF BUSINESSES • Producers • Intermediaries • Service businesses

  11. Checkpoint  • How does a manufacturer differ from an extractor? • An extractor takes natural resources, such as oil or timber, for direct consumption or for use in developing other products. • A manufacturer takes resources supplied by others and converts them into useable products.

  12. 5-2 Forms of Business Ownership Goal 1 Understand the three major forms of business ownership. Goal 2 Determine when each form of business ownership is most appropriate. Goal 3 Recognize other specialized business ownership forms.

  13. KEY TERMS • proprietorship • partnership • corporation • partnership agreement • articles of incorporation • franchise

  14. BUSINESS OWNERSHIP • Proprietorship • Partnership • Corporation

  15. Forms of Ownership

  16. Checkpoint  • What are the differences between the three main forms of business ownership? • Business forms differ in the ways in which decision-making and investments are made and to whom liabilities are distributed.

  17. CHOOSING A FORM OF BUSINESS OWNERSHIP • Choosing a proprietorship • Choosing a partnership • Choosing a corporation

  18. Checkpoint  • Which form of business ownership is the most complex and difficult to form? • The corporation is more complex to begin than other business forms. • Forming a corporation requires much more bureaucracy, is more subject to government regulations, requires the organization of a board, and must have clearly defined bylaws.

  19. OTHER FORMS OF OWNERSHIP • Specialized partnerships and corporations • Cooperatives and franchises

  20. Checkpoint  • What are the other specialized forms of business ownership? • Limited liability partnership • Joint venture • S corporation • Limited liability company (LLC) • Nonprofit corporation

  21. 5-3 Organizational Structure for Businesses Goal 1 Understand important principles in designing an effective organization. Goal 2 Compare alternative organizational structures for businesses.

  22. KEY TERMS • mission statement • goal • policies • procedures • organization chart

  23. DESIGNING AN EFFECTIVE BUSINESS ORGANIZATION • Setting direction • Principles of effective organization • Responsibility, authority, and accountability • Unity of command • Span of control

  24. Checkpoint  • What is the difference between a mission statement and a goal? • A mission statement states the purpose of existence for a business and what it hopes to achieve. • A goal is a more specific statement of what a business expects to achieve and may be used to measure a business’ success.

  25. TYPES OF ORGANIZATIONAL STRUCTURES • Functional organization structure • Matrix organizational structure

  26. BUSINESS ORGANIZATION CHART

  27. Checkpoint  • What problems can result from the use of a functional organizational structure? • Employees in a functional organizational structure may tend to lose sight of overall corporate goals. • Workers tend to be limited to specific duties and may not see their relationship to the organization as a whole. • This can result in lack of interest and motivation over time.

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