Principles of Business, Marketing, and Finance Forms of Business Ownership Copyright © Texas Education Agency, 2011. All rights reserved.

“Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Copyright © Texas Education Agency, 2011. All rights reserved.

Changing Employment Trends New jobs evolve while old jobs disappear. The U.S. has an aging population. Minorities are making up a larger percentage of the workforce. Explain the changing workforce for an aging population. Also describe the needs for an aging population. Copyright © Texas Education Agency, 2011. All rights reserved.

Businesses in the U.S. Economy Employ millions of Americans Compensate owners and investors Pay taxes to federal, state, and local governments Make and distribute products and services needed by consumers, government, and businesses Copyright © Texas Education Agency, 2011. All rights reserved.

Three Major Categories of Businesses Service Business Carry out activities that are consumed by its customers Intermediaries Sell goods and services Producers Create products and services used by other individuals and businesses Ask students to give examples of producers. Possible answers may include farmers and manufacturers are examples of producers. Ask students to give examples of intermediaries in the mall. Then ask students to give examples of service businesses that they use. Examples of service businesses might include Internet service providers, doctors, dentists, hair stylists, and lawn care specialists. Copyright © Texas Education Agency, 2011. All rights reserved.

Forms of Business Ownership Sole Proprietorship Individuals who want to work and make decisions independently Little government regulation Great risk for the owner Ask students to list a business that they would feel comfortable operating as a sole proprietor. Then ask students to explain why they are qualified.   Copyright © Texas Education Agency, 2011. All rights reserved.

Forms of Business Ownership Partnership The partnership is owned and controlled by two or more people. Partners share an idea for a business. Partners want to cooperate in managing and investing, and want to share the risks and rewards of the business. Ask students to list the risks involved with partnerships. Explain how partners have unlimited liability in the partnership. Unlimited liability-full legal and financial responsibility for a business Copyright © Texas Education Agency, 2011. All rights reserved.

Forms of Business Ownership Corporation Separate legal entity owned by one or more shareholders and managed by a board of directors More difficult to form Subject to more regulations Limited liability for investors Corporation-a business treated by law as separate from its owners. Ask students to list three corporations that they think are good investment choices. Later they can look up the most current stock price for each corporation on the internet on listed in the newspaper. Copyright © Texas Education Agency, 2011. All rights reserved.

Limited Liability Partnership & Company Other Forms of Business Ownership Limited Liability Partnership & Company Joint Venture S-Corporation Nonprofit Corporation Franchise Cooperative Describe how a limited liability partnership would allow you to begin a partnership with a noted expert who is only liable for the amount they invested in the company. Explain how a joint venture ends when a project is completed. Ask students to give examples of franchises. Fast food restaurants, hotels, and other businesses operate as franchises. Copyright © Texas Education Agency, 2011. All rights reserved.