Who Are these people and why are they important? Hugh Hefner Playboy Inc. Walt Disney Walt Disney Corporation
Who Are these people and why are they important? Ben Cohen and Jerry Greenfield Ben & Jerry's Homemade Holdings, Inc Oprah Winfrey
Who Are these people and why are they important? Bill Gates Microsoft Inc. Steve Jobs Apple Computers Inc.
Who Are these people and why are they important? Sam Walton Walmart Inc. Donald Trump Trump®
Who Are these people and why are they important? Milton Hershey Chocolate Marshall Field Clothing
Who Are these people and why are they important? Mike Dell Computers Dave Thomas Wendy’s
What is an Entrepreneur? A profit-seeker who develops a new product or process and assumes the risk of profit or loss
What is the purpose of Entrepreneurs? Introduce new products Improve Quality of Existing Products Howard Schultz (Starbucks 1985) Introduce new production methods Henry Ford (Assembly Line) Introduce new ways of doing business Dell computers sold initially over internet only Mary Kay sells directly to customers
How could we categorize or sort these businesses? All Seasons Pools and Spas Abercrombie and Fitch Safeway Foods Inc. Black and Decker Pepsi Frito-Lay Macys Apple Inc. Nike Amazon Gap Inc. Daimler Chrysler Corporation Goldman Sachs Crop Toyota Motor Corporation Boeing Corporation AOL Time Warner McDonalds Corporation Miller Plumbing Microsoft Corporation John and Smithe Homemakers
What about people who start their own business? They are sole-proprietorship Firm that is owned and managed by a single individual 19 million in U.S. and only 5% of all U.S. Business
Advantages Easy to Start Few Government Regulations Complete Control Bus. License, permits Few Government Regulations Maintain accurate tax accounts, few employees Complete Control Owner keeps all profit Lower Taxes Taxed off owners personal income Pride of Ownership
Disadvantages Unlimited Personal liability Legal obligation to pay any debts Difficulty in Raising Financial Capital Limited Life Difficulty finding and Keeping Good Workers Unlimited Responsibility
What if 2 people have a great idea? Partnership 2 or more individuals who agree to contribute resources to the business in return for a share of the profit
Types of Partnerships General Partnership Limited Partnership Partners share responsibility Limited Partnership One manages, the other strictly financially
Advantages Easy to Start Few Government Regulations Shared Decision Making Process Greater Ability to Raise Capital More able to attract and retain workers Lower taxes
Disadvantages Unlimited Personal liability Limited Life General-they both owe Limited-depends on the money they invested Limited Life Partners may disagree Profits must be shared
Grasshopper & Ant Activity Read Activity 1 Part 1 Get into groups of 4 or less Read over Activity 2 Debate/Discuss the best option for both the grasshopper and the ant Report your decision on the top portion of your poster board
Grasshopper & Ant Activity Cont. Read Part II and III in your group Complete activity 3 and report your findings on the lower portion of the poster board On the lower portion of the board, or backside, what type of business do you think would be the most successful in today’s economy and why?