Bellringer 12/9 No bellringer today- just a notebook check! Number a blank sheet of paper 1-4. Write your name, the date & notebook check at the top.

Notebook Check What is the title of page 70 in your notes? Look at page 63 (Unit 7 Study Guide)- what was question # 2 *just write the question please* What was the bellringer on December 1st? You can write your question or the answer! Look at page 76 in your notes (Demand & Supply Notes)- what is a price floor?

With your entrepreneur partner: Finish the Entrepreneur Activity Worksheet. Most of you have already done Part I (Determining Demand). Now do the back side, with the supply curve and then the last part with creating scenarios in which your curves would shift. If you need extra space, you can just staple NB paper to your groups’ handout. This will serve as a review before our quiz!

Types of Businesses Focus Questions: What are the differences in the three main types of businesses and why might a person choose to establish one type of business over the other?

3 Common Forms of Business Organizations Proprietorships Partnerships Corporations

Sole Proprietorship Defined ~ a business owned and operated by a single person; easiest business organization to set up Advantages: The proprietor has full pride in the business and receives all the profits. The proprietor can make quick decisions without having to consult a higher boss – has complete control over the business Disadvantages: Unlimited Liability ~ the owner is responsible for any problems related to the business It is difficult for sole proprietors to raise financial capital ~ the money needed to run a business, make it run smoother, or enable it to grow larger Difficulty of attracting qualified employees who usually want to join larger companies that have better benefits

Partnerships Defined ~ a business owned by two or more people; there are fewer partnerships than any other business model Advantages: Usually partners are able to raise more money than a sole proprietorship Partners can share the responsibility of watching over the business Disadvantages: Complex legal agreements are required Unlimited Liability

Corporations Defined ~ a business recognized by law that has many of the rights of an individual ~ corporations can own property, pay taxes, and sue or be sued How does a Corporation get started? Charter ~ a government document granting permission to organize (name and purpose of the business) Stock ~ amount of shares that a corporation will issue Stockholders ~ owners of stock shares and thus part owners of the corporation Board of Directors ~ shareholders elect these representatives to act on their behalf

Corporations (Cont’d) Advantages: Easier to raise investment capital or money to run the business Size of the corporation can give it great advantage in the marketplace Board of Directors can hire professional managers to run the business Ownership of the corporation can easily be transferred through the sale of stocks Limited Liability ~ only the corporation, not its owners, is responsible for the debts of the corporation; if you invest in a corporation and it goes bankrupt, you only lose the amount of money you invested in the stocks and not more Disadvantages: Expensive & complex to start up Stockholders have very little individual say in how the corporation is run Subject to more government regulation than other business models Double Taxation ~ paying taxes twice on corporate profits

Franchise A large company allows an entrepreneur to open and manage an individual location of the business Example: Rita’s Water Ice

Nonprofit Organization Defined ~ churches, hospitals, and social service agencies that do not attempt to make profit

Cooperative Defined ~ a voluntary association of people formed to carry on some kind of economic activity that serves to benefit its members

Labor Unions Defined ~ groups of workers who band together to fight for higher pay and better working conditions

Labor Tactics Strike ~ all the workers in the union refuse to work in order to achieve some demands Picketing ~ striking workers walk outside a business to prevent anyone from entering Boycott ~ the refusal to buy goods or services from a particular company as a way of protesting Collective Bargaining ~ officials from the union and from the company meet to negotiate a contract for the workers; able to avoid a strike & both sides some of what they want