Business Organizations

Business Organizations Sole Proprietorship Type of business owned and operated by one person. Partnership Type of business owned and operated by two or more people. Limited Partnership Type of business where one or more partners bear little to no risk.

Business Organizations Joint Venture Temporary partnership set up for a specific purpose for a set period of time. Corporation Type of business owned by many people and treated by law as though it were a person. Franchise Type of business in which one business sells to another business the right to use their name and products.

Mergers Merger The combining of 2 or more companies to make one company

Types of Mergers Horizontal Merger When two or more companies that are in the same business merge I & K Yard Services Landscaping by Kira Iya’s Shrubs

Types of Mergers Vertical Merger Gas Stations Vertical Merger When companies that are in the line of production merge and become one company Oil Refineries Oil Fields

Types of Mergers Conglomerate When many business (3 or more) that make unrelated products combine to make one company

Proctor and Gamble Swiffer Pringles Duracell MACH3 Crest Puma Pampers

Market Structures Perfect competition Monopolistic Competition A market structure in which a large number of firms produce the same product. Monopolistic Competition A market structure in which many companies sell similar but slightly different products.

Market Structures Oligopoly Monopoly A market structure in which a few large firms dominate a market. Monopoly a market dominated by a single seller

Comparing Market Structures Perfect Competition Monopolistic Competition Oligopoly Monopoly Number of Firms in the Industry Many A few dominate the industry One Product Differentiation None Some Control over prices Little Complete Examples Wheat Jeans, books Cars, movie studios, breakfast cereals Public Water

Types of Monopolies Natural Monopoly Geographic Monopoly Technological Monopoly Government Monopoly

Game Theory

It is a strategic business plan among competitors Game Theory A mathematical method of decision making in which a competitive situation is analyzed to determine the optimal course of action for a participant. It is a strategic business plan among competitors

What is Game Theory? The prisoner’s dilemma Johnny and Frankie get busted by the police They separate the suspects and begin to interview them They place an offer on the table to each one Confess that the both of you committed the crime and you will spend less time in jail than your partner If you don’t confess and he does, you will spend more time in jail

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College Degrees On a sheet of paper answer the following: What is the major theme of the article? Give examples from the article that proves this. Write 1 or 2 paragraphs answering these: What are your plans after high school? What school are you planning to attend? What major are you planning to complete? What is your career goal?

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