next warm up #21 individual assignment: choose a type of business and decide what you will name it....
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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.
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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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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.
SSEMI4aA. 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 PartnershipsSSEMI4a
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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BETFounded 1980
Sold it in 1999 for $2.34 Billion!
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Mary Kay AshMary 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 ownerC.Exclusive rights to profits by the owner
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Disadvantages to a sole proprietorship:
A. Unlimited liability by the ownerB. Sole responsibility of the owner to operate the
businessC. 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 AllenMicrosoft
Seattle, Wash.Founded 1975
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Larry Page and Sergey BrinGoogle
Founded 1996
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Mark Zuckerberg Chris Hughes
Eduardo Saverin Sean Parker
Andrew McCollumDustin Moskovitz
FacebookFounded 2004
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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.
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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 formB. Allow specializationC. Lets partners share decision makingD. Shares business losses between
partners
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Disadvantages of a partnership:
A. Unlimited liability by partnersB. Potential for conflict among
partnersC. Lack of business longevity
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Show What You Know!
Georgia Milestone Practice QuestionUnlike a general partnership, in a limited partnershipA.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 QuestionFrank 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 proprietorshipB.partnershipC.cooperativeD.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 #20Explain whether the trait is present in each of the business organizations below and, if so, how.
Sole Proprietorship
General Partnership
Limited Partnership
LimitedLiability 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.
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
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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.
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 OrganizationsCorporations
SSEMI4aA. Compare and contrast three
forms of business organization- sole proprietorship, partnership, and
corporation.
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Corporations:
How to form a Corporation:Submit an application for the articles of incorporation and obtain a corporate charter.
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Characteristics of a corporation:
1. Legally distinct from its owners2. Treated as an individual—can own property, hire
workers, pay taxes, sue and be sued, and make and sell products
CorporationsCorporations
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Advantages of organizing a corporation:
1. Limited liability 2. Separation of ownership from management are
professionals3. Greatest access and ease of raising capital4. Longevity (unlimited life)
CorporationsCorporations
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Disadvantages of organizing a corporation:
1. Costly due to taxation2. Difficult to start up and obtain a corporate charter3. Many government regulations to follow4. Slow decision-making process and less control of running
the business
CorporationsCorporations
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Show What You Know!
Georgia Milestone Practice QuestionAn 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 minutesTask: You are going to identify the factors of production for a new product or serviceActivity: 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 #211. 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).
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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 ProprietorshipZoning lawsLiabilityCollateralLongevityPartnershipGeneral partnership
Corporate charterProfitInterestCorporationsArticles of incorporationLimited partnershipStart-ups