Warm Up #21

Individual assignment: Choose a type of

business and decide what you will name it.
3 minutes

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 Class Confession
We the Senior Class of 2016 will complete ALL of
our assignments to best of our abilities and
behave appropriately in class.

We will respect all faculty, staff, substitutes,

classmates, and especially Mr. Wilcox.

We will graduate on time May 20, 2016 and

become productive citizens in society.
NEXT
 SSEMI4a
The student will explain the organization and role of business and analyze the
four types of market structures in the U.S. economy.
A. Compare and contrast three forms of business organization- sole
proprietorship, partnership, and corporation.

Determine and define vocabulary. Identify key terms within the

standard. Define each term.
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________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
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Scaffold understanding of the standard(s) and/or element(s).
Paraphrase the standard(s) and/or element(s). Rewrite the standard
including synonyms or brief definitions in parentheses and in a
different color following the key terms found in step 1.

SSEMI4a
A. Compare (link) and contrast (differentiate) three
forms of business (firms) organization (group)- sole
proprietorship (one owner), partnership (two or more
owners), and corporation (company).

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 Business Organizations
Sole Proprietorships and Partnerships
SSEMI4a
Compare and contrast three forms of
business organization- sole proprietorship,
partnership, and corporation.

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Types of Business Organizations
KEY CONCEPT
• Most of the producers in a market economy are business
organizations, commercial or industrial enterprises and the people
who work in them. The purpose of most business organizations is to
earn a profit.
WHY THE CONCEPT MATTERS
• Businesses vary in size and are organized differently. The American
Free Enterprise system allows producers to choose the kind of
business organization that best suits their purpose.

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Sole Proprietorships

A business owned and

controlled by one
person.

*The oldest, simplest,

and most common type
of business
organization.

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 BET
Founded 1980

Sold it in 1999 for $2.34 Billion! NEXT

 Mary Kay Ash
Mary Kay Cosmetics
Founded1963
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Advantages of a sole proprietorships:

A. Easy to start-up
–Zoning Laws- the regulation of the use of
real property by local government,
restricts a particular territory to residential,
commercial, industrial, and/or other uses
B. Full control of the business by the owner
C. Exclusive rights to profits by the owner

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Disadvantages to a sole proprietorship:

A. Unlimited liability by the owner

B. Sole responsibility of the owner to operate the
business
C. Limited growth potential for the business, due
to limited financial capital.
1. Collateral- anything of value that a borrower
agrees to give up if they are not able to repay
the loan.
D. Lack of longevity of the firm

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 Partnerships
A business co-owned
by two or more people,
or “partners”, who
agree on how
responsibilities, profits,
and losses will be
divided.

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Bill Gates and Paul Allen
Microsoft
Seattle, Wash.
Founded 1975 NEXT
Larry Page and Sergey Brin
Google
Founded 1996
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Mark Zuckerberg
Chris Hughes
Eduardo Saverin
Sean Parker
Andrew McCollum
Dustin Moskovitz
Facebook NEXT

Founded 2004
Three types of partnerships:

Type 1: General partnerships:

• Partners have equal decision-making authority.
• Each partner has unlimited liability.

Type 2: Limited partnerships:

• Partners join as investors.
• Partners have an inactive role in decision
making.
• Partners have limited liability. NEXT
Three Types of Partnerships

Type 3: Limited Liability Partnerships

• Limited liability partnership (LLP)—all partners
are limited
–not responsible for liabilities of other partners
–not all businesses can register as LLPs
–only those in which malpractice can be an
issue

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 Advantages of a partnership:
A. Easy to form
B. Allow specialization
C. Lets partners share decision making
D. Shares business losses between
partners

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 Disadvantages of a partnership:
A. Unlimited liability by partners
B. Potential for conflict among
partners
C. Lack of business longevity

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Show What You Know!
Georgia Milestone Practice Question
Unlike a general partnership, in a limited partnership
A. All partners share equal financial responsibility for the
firm’s decisions.
B. The inactive partner has limited liability for the
business’s debts.
C. The partners must pay special business taxes.
D. The business does not end with the death of a partner.

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Show What You Know!
Georgia Milestone Practice Question
Frank has owned the same Italian Bistro in the heart of the
city for nearly 23 years. Although it’s small, it’s known for the
best lasagna in town. What kind of business does Frank
operate?
A. sole proprietorship
B. partnership
C. cooperative
D. corporation

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The End
Any Questions?
Any Questions?
Any Questions?
Any Questions?
Any Questions?
Any Questions?

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 Closing Activity #20
Explain whether the trait is present in each of the
business organizations below and, if so, how.
Sole General Limited Limited
Proprietorship Partnership Partnership Liability
Partnership
(LLP)
Owner
operates
business
Limited life
Unlimited
liability
Limited funds
Ease of start-
up & closure
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 Warm Up #22

Many Corporations in today’s society relax the mind

and boost energy of its employees in order for them
to be more productive. How can this be done by
these corporations?

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 Class Confession
We the Senior Class of 2016 will complete ALL of
our assignments to best of our abilities and
behave appropriately in class.

We will respect all faculty, staff, substitutes,

classmates and especially Mr. Wilcox.

We will graduate on time May 20, 2016 and

become productive citizens in society.
NEXT
 SSEMI4a
The student will explain the organization and role of business and analyze the
four types of market structures in the U.S. economy.
A. Compare and contrast three forms of business organization- sole
proprietorship, partnership, and corporation.

Determine and define vocabulary. Identify key terms within the

standard. Define each term.
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
NEXT
Scaffold understanding of the standard(s) and/or element(s).
Paraphrase the standard(s) and/or element(s). Rewrite the standard
including synonyms or brief definitions in parentheses and in a
different color following the key terms found in step 1.

A. Compare (link) and contrast (differentiate) three

forms of business (firms) organization (group)- sole
proprietorship (one owner), partnership (two or more
owners), and corporation (company).

NEXT
Business Organizations
Corporations
SSEMI4a
A. Compare and contrast three
forms of business organization- sole
proprietorship, partnership, and
corporation.

NEXT
 Corporations:

How to form a Corporation:

Submit an application for the articles of incorporation and
obtain a corporate charter.

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Corporations
Characteristics of a corporation:

1. Legally distinct from its owners

2. Treated as an individual—can own property, hire
workers, pay taxes, sue and be sued, and make
and sell products

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Corporations
Advantages of organizing a corporation:
1. Limited liability
2. Separation of ownership from management are
professionals
3. Greatest access and ease of raising capital
4. Longevity (unlimited life)

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Corporations
Disadvantages of organizing a corporation:

1. Costly due to taxation

2. Difficult to start up and obtain a corporate charter
3. Many government regulations to follow
4. Slow decision-making process and less control of running
the business

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Show What You Know!
Georgia Milestone Practice Question
An advantage of a corporation is that
A. Owners pay fewer taxes than owners of other forms of
business.
B. The business is subject to little government
regulation.
C. Owners have limited liability for debt.
D. Owners have direct and immediate control over daily
management of the business.

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 Closure Activity #21
Time: 30 minutes
Task: You are going to identify the factors of
production for a new product or service
Activity: Think of a NEW product or service that
they would like to have in their lives. It can be
realistic, fanciful or abstract (concept).
-Identify the specific factors of production needed
to manufacture this product or provide the service.
-Create a visual showing how the factors of
production would be used.
-Present your NEW product or service to the class.
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 Closing Activity #21
1. Get a piece of butcher paper and with
your group: Choose a type of
business and decide what to
produce, how to produce it and for
whom to produce it.
2. Create a list of some of the main
factors of production to run that
business.
3. Come up with a commercial,
slogan, and trademark (logo). NEXT
The End
Any Questions?
Any Questions?
Any Questions?
Any Questions?
Any Questions?
Any Questions?

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 Writing 2 Win

How did you spend your Thanksgiving

Holiday Break and what are you most
thankful for?

2 paragraphs (a paragraph is 5-7

sentences)
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 Ch. 8 TEST Wednesday!

Sole Proprietorship Corporate charter

Zoning laws Profit
Liability Interest
Collateral Corporations
Longevity Articles of
Partnership incorporation
General partnership Limited partnership
Start-ups
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