2.  Sole Proprietorships  Partnerships  Corporations

3.  Everyone will be divided into groups of 3.  Each group will be given 1 of the major 3 types of Business organizations. Your job as a group will be to examine that business organization in great detail and create a Google Presentation to display the necessary information.

4.  Explain the details of WHAT that type of business organization is focused on. Definition, formation process, characteristics, examples, etc.  Advantages – major concept with explanation of advantage  Disadvantages – major concept with explanation of disadvantage  Key Concepts listed within the section (defined on your page and underlined/highlighted in some form).  SHARE WITH ME YOUR FINAL PPT/PREZI @primmm@ltisdschools.org!

5.  Sole Proprietorships (Pages 57-59)  Partnerships (Pages 60-62)  Corporations (Pages 62-65)

7.  A business owned and run by one person and is the easiest to set up;  Advantages: Ease of set up Ease if management Owner receives all profits No separate business taxes Psychological satisfaction Ease of getting out

8.  Disadvantages: Unlimited Liability Difficulty in raising financial capital Small size and efficiency Limited managerial experience “lacks business sense” Difficult to attract qualified employees; lack of fringe benefits Limited life

9.  Business jointly owned by two or more persons; types include general and limited partnerships;  Advantages: Ease of establishment (partnership articles) Ease of management No special taxes Easier financial capital Slightly larger size Easier to attract qualified employees

10.  Disadvantages: Each partner is fully responsible for other partners; limited liability (for limited partnerships only) Limited life Potential for conflict among partners

11.  A business recognized by law as its own legal entity having all the rights of an individual; therefore the owners and operators are separate;  Advantages Ease of raising financial capital Hiring professional managers Limited liability of owners Unlimited life Ease of transferring ownership

13.  Disadvantages Difficulty and expense of getting a charter Owners have little or no say in the operations Double Taxation (as corporate profit and personal income); detailed recorded are required More government regulations due to size. (i.e. stocks sold must be registered with the SEC, Securities and Exchange Commission)

14.  Businesses can grow in one of two ways: reinvesting profits or a merger – a combination of 2 or more businesses to create a single business.

15.  Investing in factories, machines and new technologies to promote growth.  Process of examining your net income (subtracting expenses from revenues) and coming to the cash flow, or the measure of profits for the business, to establish money that can be reinvested.

16.  Income statement-a report showing a business’s sales, expenses, and profits for a certain time period  Net income-a subtraction of all expenses including taxes, from total revenues or sales of goods and services (i.e. wages and salaries, interest payments, and depreciation)  Depreciation-a non-cash charge the firm takes for the general wear and tear on its capital goods ($ is never paid to anyone else)  Cash Flow-the sum of net income and non-cash charges such as depreciation that can then be invested back in the companies or paid back to owners as their reward for risk-taking

17.  Growth at a quicker rate  Development of better efficiency  To help with the production of a better product  Discounts by making volume purchases  A process to eliminate a rival  For just a change of an image

18.  I would like for you to create a collage of pictures which will represent all the types of mergers and other business organizations.  For each type, draw and label the picture and then provide a quick 1-2 sentence explanation of how your picture displays the concept.

19.  Horizontal Merger  Vertical Merger  Conglomerate  Multinational  Consumer Cooperatives  Service Cooperatives  Producer Cooperatives  Labor Unions  Professional Associations  Business Associations

20.  Horizontal Merger  takes place when two or more firms that produce the same kind of product join together to have one big business (i.e. United and Continental Airlines)  Vertical Merger  when two or more firms merge together who are in different stages of making the same product (i.e.. If Ford and a parts company were to merge)  Conglomerate  a merger in which multiple businesses making different, unrelated products join together to make one business; usually this is done for diversification-do not, “put all your eggs in one basket” (i.e. If Nike were to merge with 3M)  Multinational  a corporation that has manufacturing or service operations in a number of different countries at a given time and is subject to the laws of countries which it operates; welcomed because they transfer new technology and generate new jobs in the area where jobs are needed (i.e. McDonald’s) Disclaimer: A multinational is often a conglomerate!

21.  Nonprofit Organization  operates on a “not-for-profit” basis to promote collective interests of its members rather than to seek financial gain (i.e schools, churches, hospitals, welfare groups, and neighborhood associations)  Co-ops/Cooperatives  a voluntary association of people formed to carry on some kind of economic activity that will benefit its members: Consumer Cooperative  a voluntary association that buys bulk amounts of goods such as food and clothing on behalf of its members in order to be able to offer its members products at prices lower than those charged by regular businesses (i.e. Consumer Federation of America) Service Cooperative  provides services such as insurance, credit, and baby-sitting to its members at lower rates instead of goods (i.e. Credit Unions-financial organization that accepts deposits from, and makes loans to, employees of a particular company or government agency, Angie’s List) Producer Cooperative  an association which people formed in order to carry out some type of economic activity which will benefit businesses in their production. Helps members promote or sell their products (i.e. Ocean Spray, Lily and Laura Bracelets)

22.  Labor Unions  an organization of workers formed to represent its members’ interests in various employment matters; participates in negotiation with business management known as collective bargaining (ie. United Steel Workers, AFL)  Professional Association  a group of people in a specialized occupation that works to improve the working conditions, skill levels, and public perceptions of the profession (i.e. American Education Research Association, American Bar Association)  Business Associations  organization to promote collective interests (i.e. Texas Council for Social Studies, Chamber of Commerce, and Better Business Bureau) Chamber of Commerce- promotes the welfare of its members and community; sponsors activities ranging from educational programs to neighborhood clean-up campaigns to lobbying for favorable business legislation Better Business Bureau- a non-profit organization sponsored by local businesses to provide general information on companies, maintains records on consumer inquiries and complains, and sometimes offers various consumer education programs

23.  Some government agencies produce and distribute goods and services just like any other corporation.  Examples at the federal level would be the TVA, FDIC, and US Postal Service  Examples at the state and local level would be the police, fire protection, schools, and court systems  All levels help develop and maintain roads, libraries, and park  All ways provide a direct aspect of the productive process

24.  Acting as an umpire/regulating force for all businesses and consumers.  Regulates public utilities, investor- or municipal- owned companies that offer important products to the public, such as water or electricity  Maintain competition and reasonable rates  Also when government provides help/money to those in need in particular situations; student loans, Social Security, etc.