Pennies a Day Project

By: Valerie Rico

Types of Businesses
Sole Proprietorships
Partnerships
Corporations
Franchise
Non Profit

Types of Businesses Cont..

Sole
Proprietorships

Def - a business owned and managed by a single

person.

Ex: local bakery, local barber shop, and corner

store.
Advantages: Easy start up/ least regulation and
the owner gets to keep all of the profits.

Disadvantages: Personal liability to pay debts

and repair damages, and has a limited access to
resources.
Gov: Fringe benefits, subject to zoning laws.

Partnerships
Def: a business organization
owned by two or more persons
who agree on a specific division
of responsibilities and profits.
Ex: Doctors, Lawyers, Small
retails stores, and family
businesses.
Advantages: Not subject to
any special taxes, Larger pools
of capital.
Disadvantages: Each partner
is bound by acts of all general
partners, major potential for
conflict.
Gov: Uniform Partnership Act
(UPA) if own rules are not
established.

Types of Businesses Cont.

Franchise

Corporations
Def: a legal entity, or being, owned
by individual stockholders, each of
whom faces limited for the firms
debts.

Ex: Supermarkets, high-tech

companies, and machinery
manufactures.
Advantages: Have more potential
for growth, Raise money by
borrowing it.

Disadvantages: Difficulty and

expense of start up, and more
regulation.

Gov: Hold annual meetings for

shareholders and keep careful
records of all business
transactions.

Def: a semi-independent
business that pays fees to a
parent company.

Ex: restaurants clustered

together on the side of the
highway.

Advantages: National
advertising programs,
Managemnet training and
support.

Disadvantages: Strict
operating standards, Purchasing
restrictions (only allowed to buy
from parent company or
approved suppliers)

Gov: must follow all rules in

franchising agreement, charge
of royalties,

Types of Businesses Cont.

Non Profit
NonProfit Organizations:
business of benefiting
society.
Ex: museums, American Red
Cross, hospitals, churches.
Advantages: exempt from
income taxes, and provide
services rather than goods.
Disadvantages: partial
government support, provide
support for particular
occupations.
Gov: Little government
support.

What is an entrepreneur?
Entrepreneur: is an ambitious leader who combines
land, labor, and capital to create and market new goods
or services.
Two famous entrepreneurs you might know about are
Walt Disney and Oprah Winfrey.

Walt Disney

In 1919, he persued a career

in art and animation. He
partnered with another
cartoonist name Ubbe Iwerks
to from a company named
Iwerks-Disney Commerical
Artist they worked out of
Kansas City Film Ad
Company. The two produced
short cartoons called laugho-grams, Unable to
successfully manage his new
company, laugh-o-grams
became bankrupt and Walt
decided to head to
Hollywood, California to
establish a studio there. Walt
opened Disney Brothers
Studio and hired some of his
old talent from Kansas City.
In 1932, the first color
cartoon Flowers and Trees
won Walt the first of his
studios Academy Awards.

On December 21, 1937, Snow

White and the Seven Dwarfs,
considered one of the greatest feats
of the motion picture industry,
premiered at the Carthay Theater in
Los Angeles. Walt had an idea in the
back of his mind to someday open
an amusement park for families. A
place where adults and children
could enjoy a pleasant and clean
environment. In 1955, this dream
came true, as Disneyland Park
opened in 1955 in Anaheim
California. Walt had another dream,
to create the perfect city; he called
it EPCOT (Experimental Prototype
Community of Tomorrow.
Unfortunately, Walt would never live
to see this dream fulfilled, as on
December 15, 1966 at 9:30 a.m.,
ten days after his sixty-fifth
birthday, Walt died of complications
from lung cancer. He was cremated
on December 17, 1966 and his
ashes reside at the Forest Lawn
Memorial Park in Glendale,
California.

Oprah Winfrey

At 17, Nashville radio station, WVOL,

hired her to read the news on the air.
That same year she became
Nashvilles Miss Fire Prevention and
Miss Black Tennessee. She enrolled at
Tennessee State University, majoring
in Speech Communications and
Performing Arts. In 1973, Oprah
became Nashvilles first africanamerican TV correspondent and the
youngest person ever to co-anchor
news at WTVF-TV. In 1976, WJZ-TV in
Baltimore, Maryland offered her a job
to co-anchor the 6 oclock news. After
two years with the station, Oprah
began co-hosting WJZ-TVs People
Are Talking talk show, while
remaining an anchor and reporter.
1985 would be the start of Oprahs
rise to become the billion dollar
woman as she starred in The Color
Purple, which would earn her a
Golden Globe and Academy Award for
best supporting actress nominations.
In 1987 after a year in syndication,
The Oprah Winfrey Show received
three Daytime Emmy Awards in the
categories of Outstanding Host,
Outstanding Talk/Service program,
and Outstanding Direction. Oprah
hosted the 14th annual daytime
Emmy awards that year.

In 1988, The Oprah Winfrey Show

received its second consecutive
Daytime Emmy Award as Outstanding
Talk/Service Program. Over the next
20 years, the Oprah Winfrey show
would receive 40 daytime Emmys. In
1991, Oprah initiates the national
child protection act, testifying in front
of the US senate judiciary committee
to establish a national database of
convicted child abusers. In 1998, she
co-founded Oxygen media and the
Oxygen Network on cable and
satellite. In 1999, Oprah launched
Oprah.com, a womans lifestyle
website, where she also created the
world largest book club. In 2003,
Forbes magazine listed her as the first
African-American woman to become a
billionaire. Today, her show is more
popular than ever and airs
internationally as well as on XM
satellite radio, and via the web
through her YouTube channel. Since
2005, her website surpasses 100
million page views per month.

Pennies a Day Video

Muhammad Yunus

A Bangladesh entrepreneur. He was awarded the

Nobel Peace Prize in 2006 for founding the
Grameen Bank and pioneering the concepts of
microcredit and microfinance.

What is
Microcredit?

Microcredit is small loans

given to poor people
which allows them to
create businesses of
their own.

Microcredit in Muslim Societies

Microcredit has affected

the lives of women in
Muslim societies, by
bringing benefits to their
family, and giving them a
sense of power. The
women now feel like they
have more of a say in
their lives which in turn
makes them happier.

Results of Microloans
Some results of the
Grameen bank are the
women of the Muslim
community were able to
take out loans for cell
phones and are now able to
communicate with their
loved ones around the
world. Another result from
this would be Minera and
Denishla, a couple who was
able to put a roof over their
home and provide more for
their family. The loan
allowed them to cut out the
middle man and sell
directly, and save money to
be able to get these things.

My Microloan
Loan of $1000, for a Cake Making Business.
Bake the cakes out of my home, so it costs less money.
Rent/ Electicity/ Utilities - $700
Baking/Decorating Supplies - $150
pans - $55
decorating icing - $20 a bulk (3 per bulk)
cake mix - $15 a bulk (5 per bulk)
cooking items - $30
other expenisses - $10
Sell 5 cakes a day (2 chocolate cakes, 2 vanilla. 1
strawberry) $15 for chocolate and vanilla, $20 for strawberry.
One month - $2,400 profit is $1,550.
One year - 28,800 profit is $18,080
Five years - 144,000 profit is 93,000