2. BUSINESS ORGANIZATION

3. WHAT DO YOU NEED FOR A BUSINESS? Capital-equipment, good(s), building (location), money Advertising-marketing Business license-paying taxes Employees

4. SOLE PROPRIETORSHIP SMALL BUSINESS OWNED BY ONE PERSON 18+ MILLION SMALL BUSINESSES/SOLE PROPRIETORSHIPS IN THE US EXAMPLES Local grocery store Hair salon/barber shop Flower shop Coffee shop ADVANTAGES AND DISADVANTAGES You are your own boss Liable for taxes Owners take profits Must rent or buy facility Owner decides how Pay and provide for employees business will operate Risk involved if business fails

5. PARTNERSHIP TWO OR MORE PEOPLE SHARE THE BUSINESS EXAMPLES Local restaurant Several small, local businesses are partnerships ADVANTAGES AND DISADVANTAGES More than one person is providing capital Responsibility for the business is shared Risk is shared amongst the partners May be disagreement amongst partners

6. CORPORATION BUSINESS THAT IS RECOGNIZED AS A SEPARATE LEGAL ENTITY EXAMPLES Franchise restaurants and stores Most large businesses (some small businesses) ADVANTAGES AND DISADVANTAGES Corporations are businesses that are recognized as being separate from the people who own them. Raise money through stocks Decisions are made by a board of directors If a corporation goes out of business, it’s capital is sold

7. NONPROFIT ORGANIZATIONS PROVIDE GOODS AND SERVICES WITHOUT SEEKING TO EARN A PROFIT FOR STOCKHOLDERS EXAMPLES Charities Scientific research associations Cultural and education organizations (PBS, KET) ADVANTAGES AND DISADVANTAGES Not taxed by the government Not allowed to contribute to political campaigns Can be organized as corporations (American Red Cross) Rely on donations from the community to operate

8. ECONOMIC CARTOON Create a cartoon for one of type of business organization Should include at least one advantage and one disadvantage (see textbook for more examples, 460-464) Stick people ok Message should be clear Color Due Thursday

9. EXIT TICKET What are some examples??Sole Proprietor- Partnership- Corporation- Non-profit Organization-