Sole Proprietorships  A business that is owned and managed by a single person.  The most common type of business in the US. (70% of American businesses)

Slides:



Advertisements
Similar presentations
8-1: Sole Proprietorship
Advertisements

8-3: Corporations, Mergers, and Multinationals
The Role of Sole Proprietorships
3.06 Classify the Forms of Business Ownership
Lim Sei cK.  1. An enterprise that produces goods or services usually in order to make a profit.
Ryan Hohn Entrepreneurship Period 9. Sole Proprietorship Easiest and most popular form of business Receives profits Incurs losses Liable for all debts.
Business Know-how Housing and Interiors. Entrepreneur A person who assumes risk of starting and operating a business for the purpose of making a profit.
Stock Market Game.
Starting a New Business Or…how to be an Entrepreneur and make a lot of money!
Business Organization and Finance. What is a Sole Proprietorship ? A form of business organization where one person owns and operates the business.
By the end of this lesson you should: 1. Identify different types of businesses. 2. Can differentiate aspects of corporations, partnerships, franchises,
Mr. Duggan/ Economics BUSINESS AND LABOR. SOLE PROPRIETORSHIPS Is a business owned and managed by a single individual.
Chapter 3 – Business Organizations Cook Spring 2010.
Corporations Most complicated form of business structure It is a legal entity (an individual) Owned by individual stockholders They have limited liability.
Characteristics of Business Dr. T. Mitchell Bonneville High School Idaho Falls, Idaho.
Business Organizations
Business Organization
Business Organizations
Business Organization
Drill 4/21  1. What is a limited liability partnership?  2. What type of jobs usually engage in limited liability partnerships?
Lecture 05 Business Ownership Types.... Sole Proprietorship. – A business that is owned and usually managed by one person. Partnership.
10/7/20151 Business Organizations Chapter 3. 10/7/20152 Sole Proprietorships  Most common form of business organization in the U.S.  Owned & run by.
Chapter 8SectionMain Menu Sole Proprietorships What role do sole proprietorships play in our economy? What are the advantages of a sole proprietorship?
Ch. 8: Business Organizations. Business Brainstorm Think of your business, would you want to own it by yourself, or with others? – What are the pros/cons.
Chapter 8 Business Organizations. What is a Business Organization? A business organization is an establishment formed to carry on commercial enterprise.
Forms of Business Ownership Chapter 4. I. Comparisons of Forms of Business Organization Sole proprietorships Partnerships Corporations.
Mrs. Post – CHS Adapted from Prentice Hall Presentation Software.
SECTION1 Chap. 8 Business Organizations  business organization: an establishment formed to carry on commercial enterprise.  3 basic ways to set up a.
Chapter 8-Business Organizations Elements of Business Operation include: A. expenses-include inventory and other items you will need to do your job. B.
Presentation Pro © 2001 by Prentice Hall, Inc. Economics: Principles in Action C H A P T E R 8 Business Organizations.
BUSINESS STRUCTURES. Types of Business Structures Sole Proprietor Partnership  General Partnership  Limited Partnership  Limited Liability Partnership.
Chapter 8SectionMain Menu Sole Proprietorships What role do sole proprietorships play in our economy? What are the advantages of a sole proprietorship?
Mr. Kallusingh.  A business owned and operated by one person  They are typically small in size and usually require few qualifications  Advantages-
3.06Classify the forms of business ownership. A sole proprietorship is…  One owner  70% of all U.S. businesses  Unlimited liability. The business owner.
Chapter 8 Business Organizations. Advantages of Sole Proprietorships.
Chapter 9 Business Firms in the Economy. Forms of Business Organizations Proprietorships – one individual owns entire business Advantages: 1. easy to.
Types of Business Ownership
Sole Proprietorship  A business owned and run by one person  Makes up about 80% of all businesses.
 Types of Businesses Organizations Unit 7 Decision, Decisions.
SOLE PROPRIETORSHIP A Sole Proprietorship is the most common form of business. It’s owned and controlled by ONE person. It makes up 40% of all businesses.
Consider: What American business do you think tops Fortune 500’s list of US companies in 2014? The Last Word: Ch 7 Review/Unit 3 Test next Tuesday.
Business Structures How can businesses be legally organized?
FrontPage: NNIGN The Last Word: Ch 8 Review/Unit 3 Test - Thursday.
CHAPTER 8 – TYPES OF BUSINESS ORGANIZATIONS. SECTION 1 – SOLE PROPRIETORSHIPS  Characteristics of Sole Proprietorships (single person owned business)
Chapter 8SectionMain Menu Sole Proprietorships What role do sole proprietorships play in our economy? What are the advantages of a sole proprietorship?
1 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt You’ve.
Discuss the ___________ enterprise system. Free Enterprise System Referred to as _________________. Encourages individuals to start and operate their.
Chapter 8 Types of Business Types of Business Organizations.
Business and Market Structures What is an entrepreneur?  People who start businesses are called entrepreneurs.  They strike out on their own  They are.
Activator – Chapter 8 Write down three occupations that you’re considering for your future. Categorize each of your choices based on who your employer.
Civics & Economics Mr. Vivian. Sole Proprietorship A business owned and managed by a single individual According to the IRS 75% of all businesses in the.
Advantages and disadvantages of business ownerships.
B. OVERVIEW OF SMALL BUSINESS 3.00 Explain the legal environment of small business Compare forms of business ownership. (The logos used in this PowerPoint.
BUSINESS ORGANIZATIONS. Business Organizations An enterprise that produces goods or provides services in order to make a profit A business can be organized.
Business Organization How businesses are set up and run.
BUSINESS ORGANIZATIONS Chapter Eight. SOLE PROPRIETORSHIPS Section One.
EPF – Unit 3 Business Types. EPF-2b Unit 3 (Part One) I can explain how business respond to consumer sovereignty Target A.
Economics Look for your new seat in the new seating chart- I needed a different view of life Take quiz on vocabulary words from Current Event on Canadian.
Business Organizations Ch.9. Entrepreneur A person who is willing to start their own business and manage it.
Business Organizations Chapter 3. Types of Business Organization Three ways modern businesses are organized Proprietorship- A business owned and ran by.
Chapter 8: Types of Business Organizations Section 3: Corporations, Mergers, and Multinationals pg
The Role of Sole Proprietorships
Types of Business Ownership
7.00 Understand marketing and business management.
Business Organizations
U3C8: Types of Business Organizations
8-1: Sole Proprietorship
Business Organizations
Business Organizations
8-3: Corporations, Mergers, and Multinationals
Presentation transcript:

Sole Proprietorships  A business that is owned and managed by a single person.  The most common type of business in the US. (70% of American businesses)  Sole Proprietorships generate less than 5% of all sales in American business.

Sole Proprietorships Advantages: - Relatively easy to open or close. - There are few regulations. - Owners have freedom and near total control of their business - Owners keep all the profits.

Sole Proprietorships Disadvantages: - Limited funding: startup cost fall completely on the owner. - Limited Life- the business ceases to exist if the owner leaves, dies or retires. - Unlimited Liability- owners are totally responsible for all losses, debts and claims against the business.

Sole Proprietorships Examples: - Edmonson’s Barber Shop on hwy 31 - Wayne’s Produce - Lovett Woodworking

Partnerships  A business that is co-owned by two or more people.  Partners are often responsible for different aspects of the business.  There are three different types of Partnerships.

Partnerships Type 1: General Partnerships - Where partners share responsibility for managing the business and each partner is liable for all debts and losses.

Partnerships Type 2: Limited Partnerships - When at least one partner is not involved in the day-to-day running of the business and is only responsible for the money they have invested. - This person is basically an investor.

Partnerships Type 3: Limited Liability Partnership - Where partners are limited partners and not responsible for the debts and liabilities of the other partners.

Partnerships Advantages: - Easy to open and close - Few regulations - Access to the resources of the other partners

Partnerships Disadvantages: - Unlimited liability (most partnerships) - Potential for conflict - Limited life

Corporations - A business owned by individuals (shareholders) that own the rights to the company’s profits, but face limited liability of the company’s debts and losses. - Shareholders acquire ownership through the purchase of stock; shares of the corporation.

Corporations  As a stockholder your only risk is the amount of money that you have invested in the company, not for any debts that the company may have acquired.  Some stocks pay dividends or parts of the profits given directly to the share holder.

Corporations  A public company allows anyone to buy their stock, while a private company retains control over who can buy or sell the stock.

Corporations Advantages: - Access to resources - Professional management - Limited liability - Unlimited life (business will continue regardless of who enters and leaves)

Corporations Disadvantages: - High start-up cost - Heavily regulated by the government - Double taxation (yikes!) - Potential loss of control

Other Good Stuff Horizontal Merger: - The joining of companies that offer the same or similar goods or services. Vertical Merger: - Companies that combine who offer several different steps of production of a product or service. * More on next Slide

Horizontal vs. Vertical Horizontal Example: - Standard Oil/ John Rockefeller Vertical Example: - Carnegie Steel/ Andrew Carnegie

More Good Stuff A conglomerate is a merger of companies that produce unrelated products or services. Examples: - Colgate-Palmolive Company - AT&T bought out Direct TV. Through growth, an enterprise can become a multinational corporation which means it have several branches in several different countries. Examples: - McDonalds - Wal-Mart

Classroom Activity Yay! Listen to Mr. Lovett while he explains what you will be doing in class for the next two days. Hey, that’s me! >

Resources  Meek, Morton and Shug, M. (2011). Economics: Concepts and Choices. Orlando, Florida: Holt McDougal.  b jpg b jpg   DR7t3dWRJrQ/UcoQo2olbNI/AAAAAAAAAHo/LGu3rHLbDPw/s1600/business-law.png DR7t3dWRJrQ/UcoQo2olbNI/AAAAAAAAAHo/LGu3rHLbDPw/s1600/business-law.png   0/s480x480/ _ _ _n.jpg?oh=b8a1de0b26adab75 7edc9d52c85acdd8&oe= &__gda__= _750da217cc5493e3aeec c9f5 0/s480x480/ _ _ _n.jpg?oh=b8a1de0b26adab75 7edc9d52c85acdd8&oe= &__gda__= _750da217cc5493e3aeec c9f5      