Using Sole Proprietorships and Business Partners

Next Generation Science/Common Core Standards Addressed CCSS. ELA WHST.11 ‐ 12.8 Gather relevant information from multiple authoritative print and digital sources, using advanced search effectively; assess the strengths and limitations of each source in terms of the specific task, purpose, and audience; integrate information into the text selectively to maintain the flow of ideas, avoiding plagiarism and overreliance on any one source and following a standard format for citation. Literacy. WHST.11 ‐ 12.8

Student Learning Objectives 1. What is a “Sole Proprietor” Business? 2. Are their advantages of a sole proprietorship? 3. Are their disadvantages of a sole proprietorship? 4. What is the function of a partnership? 5. Are their advantages to a partnership? 6. Are their disadvantages to a partnership?

Terms Sole proprietorship Limited partnership Partnership Unlimited liability

Interest Approach Ask students how many of them would like to run their own business and why. Relate to them that this lesson will focus on owning your own business.

What is a sole proprietorship? A Sole Proprietorship is a business with a single owner/operator. –It is the simplest form of business organization. –Only one person makes the decisions. –The proprietor provides all the start-up costs. –The proprietor is personally responsible for business debts.

What are the advantages of a sole proprietorship? The sole proprietorship offers numerous advantages. –Sole proprietors are their own bosses. –The proprietor owns the assets and runs the business. –The proprietor receives all profits. –Business expansion decisions are easy to accomplish.

What are the advantages of a sole proprietorship? The sole proprietorship offers numerous advantages. –The proprietor can make quick decisions or change business direction faster. –There is strong incentive by the owner to work hard.

What are the disadvantages of a sole proprietorship? There are numerous disadvantages of a sole proprietorship. –It may be difficult to raise enough capital to begin the business. –All assets, business and personal funds, may be used to meet debts. –The proprietor is responsible for the entire business. –An injury could cause a stop in the business.

Review / Summary What is a Sole Proprietorship? What are the advantages of a sole proprietorship? What are the disadvantages of a sole proprietorship? How does a partnership work? What are the advantages and disadvantages of a partnership?

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