1. Warm-up and Review Take out your sheet on Supply and Demand from yesterday then answer the following- 1. State the Law of Demand. 2. State the Law of Supply. 3. What happens when the supply and demand are equal? 4. What are some synonyms for shortage? 5. What are some synonyms for surplus? 6. Tell about compliments and substitutes. List some examples.

2. TYPES OF BUSINESSES AND LABOR UNIONS

3. Types of Business  Sole proprietorship- a business owned and managed by a single individual  According to the IRS 75% of all businesses in US are sole but these generate only about 6% of US sales

4. Types of Business- Sole Proprietorship Advantages  Easy start-up (business licenses, site permit, name of business)  Sole receiver of profit  Full control of business  Easy to discontinue  Not subject to special business taxes Disadvantages  Unlimited personal liability  Liability is a legally bound obligation to pay debts- Sole proprietors are bound to all of their business debts  Limited access to resources  Limited life- business lack permanence beyond the life of the sole proprietor

5. Types of Business continued…  Partnerships- a business organization owned by two or more persons who agree on a specific division of responsibilities and profits

6. Types of Business- Partnership Advantages  Easy start-up  Shared decision making  Specialization- each partner can bring his or her talents  Larger pool of assets- helpful when the business needs to borrow money  Not subject to special business taxes Disadvantages  Unlimited liability  Each general partner is bound to debt incurred and responsible for paying this debt  General partners do not have absolute control over their business  Potential for conflict

7. Types of Business continued…  Corporations- a legal entity owned by individual stockholders  Stockholders own shares of stock- a certificated ownership in a corporations  Stockholders are part owners of the corporation.

8. Types of Business- Corporations Advantages  Limited liability for owners  Transferable ownership- owners can sell stock and get money in return  Long Life- business does not end with the death of the owners  More potential for growth Disadvantages  Expensive & difficult to start up  Double taxes  Corporations pay taxes on income  Stockholders receive dividends (profits paid out to stockholders)  Dividends are also taxed  Potential loss of control by the founders- Board of Directors usually run corporations  More legal requirements and regulations

9. Types of Business continued…  Multinational Corporation- a large corporation that produces and sells its goods and services throughout the world

10. Types of Business- Multinational Corporation Advantages  Provides jobs and products around the world  Efforts to spread new technology around the world  Increase standard of living in many poor countries Disadvantages  Low wages  Poor working conditions

11. Other Business Organizations  Some business operate on a “not for profit” basis  Examples- Churches, hospitals, social services institutions  Cooperatives- an association of persons united voluntarily to meet their common economic, social, and cultural needs through a jointly-owned and democratically-controlled enterprise

12. Other Business Organizations  Franchise- A large company allows an entrepreneur to open and manage an individual location of the business  Examples-

13. Corporate Combinations  Horizontal Merger- joining of two or more firms competing in the same market with the same good or service  Vertical Merger- joining of two or more firms involved in different stages of producing the same good or service  Conglomerate- merging of more than three businesses that make unrelated products

14. TAKE 2- Take 2 minutes to tell your elbow partner about the different types of businesses. Follow these steps- 1. Partner to the left describe a sole proprietorship 2. Partner to the right describe a partnership 3. Partner to the left describe a corporation 4. Partner to the right describe a multinational corporation

15. Labor  Productivity- the value of output  Unskilled labor- requires no specialized skills, education or training  Examples- dishwashers, many factory workers, janitors, farm workers  Semi-skilled labor- requires minimal specialized skill and education  Examples- short order cooks, some construction workers, lifeguards

16. Labor continued…  Skilled labor- requires specialized abilities and training to do tasks  Examples- mechanics, bank tellers, plumbers, firefighters, chefs, carpenters  Professional labor- demands advanced skills and education  Examples- managers, teachers, bankers, doctors, lawyers, actors, computer programmers

17. Wage Discrimination  Wage discrimination occurs when people with the same job, same skills and education, same job performance, and same seniority receive unequal pay  Women and minorities are among those who have experienced wage discrimination

18. Labor Unions  Labor Unions- an organization that tries to improve working conditions, wages, and benefits for its members  Right-to-work Laws- a measure that bans mandatory union membership (NC is a right-to work state)  Collective Bargaining- the union and company representatives meet to negotiate a new labor contract

19. Strikes and Labor Tactics  Strike- organized work stoppage intended to force an employer to address union demands

20. Strikes and Labor Tactics continued...  To avoid strike, a third party may be called in to settle a dispute  Mediation- neutral mediator meets with each side to try to find some solution; Decision reached by the mediator is nonbinding  Arbitration- a neutral third party reviews the case and imposes a decision that is legally binding for both sides

21. Strikes and Labor Tactics continued...  Picketing- striking workers walk outside a business to prevent anyone from entering  Boycott- the refusal to buy goods or services from a particular company as a way of protesting

22. Work Time! Use the rest of the class to work independently.  You may work on one of the following using BYOT or a school computer.  Notes (Due tomorrow)  Business Plan Project (Due Friday)  Study Guide (Due Wednesday)  Vocabulary (Due Thursday)  You may not sit and talk or work on another assignment!