Resource Allocation and Management

1. Sole Proprietorship: ◦ Simplest form and easiest to enter. ◦ One owner who is entitled to all profits and responsible for all debts. ◦ Owner assumes unlimited liability which means if the business gets in trouble, personal assets can be seized.

2. Partnership: ◦ Formal commitment between two or more people to work together to achieve goals of the business. ◦ All partners may not be actively involved in the operation of the business. ◦ Profits and losses are divided between the partners. ◦ If the business is unable to pay bills, creditors can go after personal assets of all of the partners.

Limited Partnership – when one or more of the partners liability is limited to the amount of money that they have invested in the business. Silent Partners – a partner who invests financially, but does not take an active part in the management of the business.

3. Corporation or Limited Company: ◦ Is a legal entity created by law, it stands apart from its owners. ◦ Like a person, the corporation is able to enter agreements, own land and property and hold contracts. ◦ A corporation can be sued and incur debt. ◦ Has unlimited life, as ownership is easily transferred.

4. Franchise: ◦ Allows the owners of a successful business to duplicate in another location without having to raise additional money themselves. ◦ Each independent owner operates as part of a chain. ◦ Use the same products, trademarks, equipment and operating procedures. ◦ Can be bought by a sole proprietor, partnership or corporation.

 Read the four business scenarios.  As a group, make a recommendation for each client. State the reason for your position.  Identify at least one negative and suggest how you might minimize it.

Autocratic LeadersDemocratic Leaders  Entirely goal-oriented.  Make all decisions for their organization.  May lack confidence in their employees.  May clash with enterprising employees  Encourage employees to participate in the decision-making process.  Delegate authority to make decisions to subordinates.  Fosters an atmosphere of trust.

Collegial LeadersLaissez-faire Leaders  Democratic leaders who tend to regard everyone as an equal.  Prefer to use team decision-making processes.  Demonstrate a high degree of authority to employees.  Respect the skills each person brings to the team.  Ignores the specifics of a task or job and concentrate on giving employees the freedom to determine what they should do and how they should do it.

1. Motivating others. 2. Resolving conflicts. 3. Facilitating communication. 4. Managing personal stress.