Introduction to Business Chapter 6 Business Structures Essential Question: What are the different types of businesses and how does each work?

Objectives: 1.2 Business Environment (C): Students will understand the development and structure of business environments. They will demonstrate competency by identifying the dynamic components of business structure and its relationship to the global business environment. 1.2.3 Business Ownership–identify the major types of business organizations

Chapter Objectives Understand how ownership differs among sole proprietorships, partnerships and corporations. Grasp the advantages and disadvantages of the three types of ownership. Learn the five functions of managers. Recognize three specialized forms of business organization

Types of business ownership p.69 Sole proprietorship is a business owned by one person and are easily formed. Sole proprietors gain all the profits and have unlimited liability for the debts of their businesses Partnership is an association of two or more people operating a business as co-owners and sharing the profits or losses according to a written agreement. Partners have unlimited liability for the debts of their businesses

Types of business ownership p.69 Corporation is a business made up of a number of owners but authorized by law to act as a single person. Owners of corporations can only lose the amount that they have invested. Corporations must file reports with a state and obtain official approval. Board of directors is a group of people elected by the shareholders to guide a corporation. Certificate of incorporation is a document, generally issued by a state government, giving permission to start a corporation. Shareholder is a person who owns stock in a corporation. Dividends are the part of the profits of a corporation that each shareholder receives.

Getting Started p. 70 Experience Hobby or interest Previous employment experience Education Post secondary education in a trade, or degree program. Planning Funding, research, networking, gaining knowledge. Examples Steve’s Hobby Shop, My brother’s carpentry business.

Managing a successful business p.72 Planning Gather an analyze information and then make decisions based on that information. Organizing Determine what work has to be done and who is to do it. Staffing Activities involved in finding selecting, hiring, training appraising, and rewarding the businesses employees. Leading Work of people must be directed so that their tasks will be performed correctly. Controlling Determining to what extent the businesses goal are being met. The leader compares to what was planned to what was met.

Expanding a business. p.79 a partnership is formed through a contract called articles of partnership. The partners are personally liable for all debts incurred a corporation is created by articles of incorporation registered with the state and issues out shares of equity stock to shareholders. The shareholders are liable for only the amount of their stock holdings.

Specialized forms of business organizations p.79 Franchise is a written contract granting permission to sell someone else’s product or service in a prescribed manner, over a certain period of time and in a specified area. Franchisor is the parent company that grants permission to sell its products or services. Franchisee is the person or group of people who have received permission to from a parent company to sell its products or services. Examples Dunkin’ Donuts Burger King Subway

Specialized forms of business organizations p.79 Cooperatives are businesses that are owned by the members it serves and is managed in their interest. farmers’ cooperatives Independent Grocers’ Alliance (IGA) non-profits are organizations that provide services or good order for designated beneficiaries with revenue from an endowment and/or a benefactor and that do not have earning a profit as a goal. Examples include: Municipal corporation which is an organization that provides services for citizens with revenue from their taxes and that does not have earning a profit as a goal. Universities which is an organization that provides educational services for its students with revenue from their tuition and that does not have earning a profit as a goal.

Assignments Do Now 10/6 Read Environmental Perspectives on p. 79 and answer both questions with a short answer 10/7 Calculate Business Data p.84 # 35 open excel spreadsheet and calculate. 10/9 Global Navigator—Measuring Global Progress, p. 85. Read article then respond to the two questions at the end. Workshop Discussion (Each person writes response in notebook.) 10/7 Decision-making Strategies p. 83 (Walk-through of workshop model). 10/8 Communicate Business Concepts questions 15-19 p. 82 Write and present your group’s brief response

Homework 10/4 Define Key Terms Develop your Business Language p. 83 10/5 Answer Review your reading questions 1-4 p.82