Intro to Business Chapter 5 Business Organization 5-1 Business in the U.S. Economy 5-2 Forms of Business Ownership 5-3 Organizational Structure for Businesses

5-1 Business in the U.S. Economy Employment data: In 20____, ___________ people held jobs in the U.S. Currently there is a higher growth rate for _____, __________, and _________________workers. White Non-Hispanic workers make up _____ of the labor force By 2014, nearly one half of all jobs will be held by _________.

5-1 Business in the U.S. Economy Pressures on Employees Economic stress can lead to ______________ _______________can help or hurt employees Work/Life balance (family) Additional _____________ requirements Added ______________ Contingent worker –

5-1 Business in the U.S. Economy Businesses and the Economy In 20___, all businesses worldwide produced more than __________ of goods and services; U.S. businesses accounted for ____ of that production Roles of Business Most U.S. businesses are quite _________

Percent of Businesses by Employee Size

5-1 Business in the U.S. Economy Business Activities Generating Ideas Raising Capital Employing and Training ____________ Buying ________ and _________ ___________ Goods and Services Maintaining Business Records

5-1 Business in the U.S. Economy Types of Businesses Producers – __________ – takes resources from nature __________ – cultivate land or raise livestock ________________ – get supplies from other producers and convert them into products Intermediaries – Service Businesses–

5-2 Forms of Business Ownership 3 Major Forms of Business Ownership Proprietorship – Partnership Corporation –

5-2 Forms of Business Ownership Proprietorship Pros Proprietorship Cons

5-2 Forms of Business Ownership Partnerships Partnership agreement – Business name, investments, how profits and losses will be shared, responsibilities of each person, how partnership can be dissolved Most states require that partnership _________ a business name as well as the name of each person in the partnership

5-2 Forms of Business Ownership Partnership Pros Partnership Cons

5-2 Forms of Business Ownership Corporations Articles of Incorporation – Must create corporate _______ and name a ______ of ________ Issues shares of ________to investors Most popular form of ownership for _______ businesses

5-2 Forms of Business Ownership Corporation Pros Corporation Cons

5-2 Forms of Business Ownership Other Forms of Ownership Limited Liability Partnership Joint Venture (two or more businesses unite) S-Corporation Limited Liability Company (LLC) Nonprofit Corporation Cooperative Franchise –

5-3 Organizational Structure for Businesses Many new businesses _____ in the first years The direction for the business comes from its mission statement – Businesses must create: _________ – results the business expects to achieve _________– guidelines for decision-making _________ – descriptions of the way work is done

5-3 Organizational Structure for Businesses Principles of Effective Organization Responsibility, Authority and Accountability Unity of Command Span of Control

5-3 Organizational Structure for Businesses Organizational Structures Organization chart – Functional organizational structure – Matrix organizational structure –