Activator – Chapter 8 Write down three occupations that you’re considering for your future. Categorize each of your choices based on who your employer might be for each job. JobEmployer

Chapter 8 - Business Organizations Business organization (firm) –establishment formed to carry on a commercial enterprise. 3 types - Sole proprietorship, partnership, corporation Each has different levels of liability (responsibility) Liability – legal obligation to pay debts incurred by the business

Sole proprietorship – a business owned and managed by a single individual Most common type of business organization 75% of all businesses are sole proprietorships in the U.S. Sole Proprietor

Partnership Partnership – a business organization owned by two or more persons who agree on a specific division of responsibilities and profits Account for about 5 % of all businesses General Partnership – partners share equal liability and responsibility Doctor’s lawyers, accountants, small family businesses Limited Liability Partnership – all partners are limited from personal liability, in the case of another partners mistakes. Legal buffer from personal liability Articles of Partnership – outline the agreements between partners.

Corporation Corporation – is a separate legal entity, or legal being, owned by individual stockholders, each of whom faces no liability for the firm’s debt Stock – a certificate of ownership in a corporation Partial owner, i.e shares, purchase 1, 1/1000 th owner of the company Corporation has a separate legal identity, an entity separate from its owners Account for 20% of all businesses, but 90% of all products sold

Figure 3.3 Ownership, Control, and Organization of a Typical Corporation

Corporation Closely held – privately held corporations, that do not trade stock on the public exchange Publicly held – sells stock on the market to investors in order to grow the business

Mergers Merger – combine with another company to become one entity Horizontal merger – firms in the same market with a similar good or service merge Vertical merger –firms involved in producing different goods or services merge Conglomerates – business mergers with more three or more businesses Multinationals – large corporation that produces and sells its goods and services throughout the world

Other Organizations Business Franchise – semi-independent business that pays fees and royalties to a parent company Business is granted right to sell using the name, product and brand of the company Zaxbys, McDonalds, Subway, etc. Cooperative – Co-0ps, business organization owned and operated by a group of individuals for their shared benefit

Other Organizations Consumer cooperative –consumers sell merchandise to members at reduced prices Book clubs, health food stores Service cooperative—provide a service rather than a good Credit union, banking services, health care, legal help Producer cooperative—agricultural marketing that help members sell their products

Other Organizations Nonprofit Organizations – business that gears towards benefiting society (philanthropy) Professional Organizations—work to improve the image, working, conditions, and skill of workers National Education Association, American Veterinary Medical Association, American Bar Associations of Lawyers, etc. Business Organization—promote the collective business interests of a city, state, nation, or a group of similar businesses Better Business Bureau

Other Organizations Trade Associations—nonprofits that promote the interests of particular industries Labor Unions – organized group of workers whose aim is to improve working conditions, hours, wages and fringe benefits for its members.

Landinguin/Henning Jasmine Gerald Nisha Hankerson Fabiana Johnson Dekel Joseph Taneka Murphy Tabahri Newberry Shaquail Bell Rebecca Bullard Greg Burchett Darren Cowart Michael Diggs Shaquail Ellis Matt Forrest Minnie Gallarza Jordan Armstrong

Binder Check – Due Tuesday Reflection Questions Day 2 2. Essential Questions (2) 3. Daily Tens (7) 4. Video Questions – Browser Wars/Google 5. Ch Study Guide 6. Ch Crossword Puzzle 7. Ch. 7+8 VIS Terms 8. Chapter 7/8 - Notes 9. Test Corrections-Standards Sheet

Study Guide Chapter Perfect/Pure competition 2. Many buyers and sellers, identical products, buyers + sellers are well informed, no barrier to entry. 3. Barrier to entry 4. Monopoly 5. Natural 6. Prices are not competitive, dictated by monopolist. 7. Patent 8. Government 9. Price discrimination 10. Market power 11. Monopolistic 12. Many firms, product differentiation, low barrier to entry, little control over price 13. Running shoes, pens, cars, etc., gas station near highway, publix, designer t-shirt

Study Guide Chapter Oligopoly 15. Collusion, price fixing 16. Antitrust 17. Microsoft 18. Sole proprietor 19. Partnership 20. Corporation 21. Sole proprietorship 22. Corporation 23. Partnership 24. Sole proprietorship 25. Partnership 26. Corporation 27. Horizontal 28. Vertical 29. Conglomerate 30. Franchise

Extra Credit 1. List the 4 market structures in order from least competitive to most competitive. 2. What does it mean to have market power? 3. Which of the four forms of nonprice competition (physical characteristics, location, service level, image/status), would reflect the following? a. A fast food restaurant near the beach b. A new shape for a running shoe c. Publix, “Where shopping is a pleasure” d. Express brand clothing vs. Target

Essential Question #1 1. How do the 3 business organizations differ? A sole proprietorship is owned and operated by ___________________ Partnerships are owned by _______________ Corporations are owned by ___________________ Essential Question #2 2. What are the characteristics of each market structure? Perfect competition, products are ___________________, _____________ firms, consumers are _____________, ________________ barriers to entry. Monopolistic competition, products are __________________, but not _________________, __________________ firms, __________________ barriers to entry. Oligopoly, products are ________________ or _____________, and are controlled by ___________ firms. ____________ barriers to entry Monopoly, ___________ product, controlled by ___________ firm, ______________ barriers to entry one person 2 or more people shareholders identicalmany informedno similar identicalmanylow Identical similar a fewhigh one complete