Unit 2 Lesson 2 Business Types (Continued) & Mergers

Create a Poster About Your Business Your logo and business name should feature prominently. Include an “information” section, which includes the following: –Nature of the business (What is being produced?) –Amount of start-up money used. –Source of the start-up money. –Partner profit division percentages. –Percent of the business publicly offered.

Do corporations have moral responsibilities? Structured Academic Controversy

Merger Activity

Mergers Horizontal merger: businesses make same/similar product Vertical merger: businesses make products at different stages of production of the same good Conglomerate: products are not related in any way

It’s a Horizontal Merger If: Wachovia merges with Wells Fargo

It’s a Vertical Merger If: A lumber mill & A baseball bat maker & A sporting goods store Merge together

It’s a conglomerate if: An airplane company, television network, bank, & electricity company merged together.

Merger Worksheet

Business Type Quiz

1) Which is the biggest disadvantage of a sole proprietorship? A) Price Leadership B) Interdependence C) Double Taxation D) High Personal Liability

2) What is the name for the document that spells out how partners divide their profits & losses? A) Charter B) Contract of Terms C) Articles of Partnership D) Stock Certificate

3) Which business type can generally raise the most financial capital? A) sole proprietorship B) small business C) partnership D) corporation

4) Owners of corporations have: A) Unlimited Liability B) Limited Liability C) the responsibility of managing the corporation. D) difficulty transferring ownership.

5) How many times is corporate income taxed? A) Corporate income is not taxed. B) 1 time C) 2 times D) 3 times