2.  Collect handout from Ms. Nall

3.  Merger : When two or more companies join together under one name

4.  Unlimited liability : Risk extends beyond your share in a company. (you could lose EVERYTHING!)  Limited Liability : Risk only involves your share of the company.

5.  Unlimited Life : Ownership can be transferred when owner dies  Limited Life : Business dies when owner dies

6.  Stock/Share: the part of a company you purchase in a stock exchange

8.  Description › 1 person owns and operates the company  Advantages › The owner makes ALL decisions and reaps ALL the benefits  Disadvantages › Unlimited Liability  Examples - Girl’s lemonade stand, Shima’s beauty salon

9.  Description › 2 or more people own and operate the company  Advantages › Divide tasks among partners › Access different skills of partners  Disadvantages › Share Profits › Unlimited liability  Example - Doctors and Law offices

10.  Description › A company divided into shares who are owned by stockholders  Advantages › Limited Liability  Disadvantages › Double taxes › Gov’t regulations  Examples- Disney, IBM, Microsoft, Nike, Apple

11.  Description › A company that is individually owned but belongs to a parent corporation (sole- proprietorship & Corporation)  Advantages › Built-in reputation › Limited Liability  Disadvantages › Loss of freedom & decision making  Examples - the Panthers, McDonald’s, Five Guys Burgers

12. Board of Directors: selects the… CEO (President): hires the Vice Presidents of the company

14. Horizontal Merger- when 2 or more companies making the same thing join together. EX: XM Radio & Sirius Radio Vertical Merger- when 2 or more companies involved in different stages of making the same thing join together. EX: Oils companies buy oil fields, tankers, and gas stations

16. Conglomerate- when 2 companies that make unrelated products join together EX: Phillip Morris & Kraft General Electric & NBC

17. WHAT DOES IT DO? It insures your money in the bank up to $250,000. If the bank fails and your money is in it you will get all of it back up to $250,000. HOW DOES THAT BUIILD CONFIDENCE IN THE BANKING SYSTEM? People know that their money is safe in the bank, so they put it there.

18.  Generally speaking, an investment that is… › LOW RISK tends to have a LOW rate of RETURN  Ex: Savings account, mutual fund › HIGH RISK tends to have a HIGH rate of RETURN  Ex: Stock Market

19.  Instead of trading goods and services for money, you trade them for other goods and services. › Ex: you give me a haircut and I’ll wash your car › Ex: you give me 1 cow and I’ll give you 1 bushel of apples

20.  Goods lose value over time  Difficult to measure the value of goods  Not all goods are acceptable to trade

21. - store of value: keeps its value over time - medium of exchange : Its accepted by everybody - unit of account: use it to compare values

23.  An organization of workers that tries to get better pay and benefits for its members.

24.  When the labor union negotiates with a company for better pay and benefits

25.  When workers in a union refuse to work until the company meets their demands

26.  When an employer refuses to let workers work to use as leverage.

27.  When the government attempts to help business by lowering taxes › Trickle Down Effect

28.  Commodity Money › Objects that are used as money through bartering  ex: 1 donkey for 20 bags of grain  Fiat money › A note that the Government deems as “legal tender”  ex: U.S. Dollar

29. DISCUSS: How does a bull attack someone? Which direction does the person go? Bull Market: When the stock market is quickly on the rise.

30. Bear Market: When the stock market is quickly falling. DISCUSS: How does a bear attack someone? Which direction does the person go?

31.  How does the U.S. economic system allow for individual freedom and economic security?  What role does organized labor play in protecting workers and how does it impact prices and consumers?  How do sole proprietorships contribute to the spirit of the United States’ economic system?