1. Forms of business organizations

2. Sole Proprietorship Term Definition
A business that is owned and usually managed, by one person.
Liability
For a business, it includes the responsibility to pay all normal debts and to pay because of a court order or law, for performance under a contract, or payment of damages to a person or property in an accident.
Unlimited Liability
The responsibility of business owners for all of the debts of the business.

3. Partnerships Term Definition Partnership
A legal form of business with two or more owners.
General partnership
A partnership in which all owners share in operating the business and in assuming liability for the business’s debts.
Limited partnership
A partnership with one or more general partners and one or more limited partners.
Limited liability
The responsibility of a business’s owner for losses only up to the amount they invest; limited partners and shareholders have limited liability.

4. Corporations Term Definition Corporation
A legal entity with authority to act and have liability separate from its owners.
Public corporation
Corporation that has the right to issue shares to the public, so its shares may be listed on a stock exchange.
Private corporation
Corporation that is not allowed to issue stocks to the public, so its shares are not listed on stock exchanges; it is limited to 50 or fewer shareholders.

5. List one advantage and disadvantage of each form (3 forms) of ownership

6. Franchise
Franchising a system by which a business expands into new neighborhoods and towns (or foreign countries) by selling the rights to use the company's name and products to individuals.
The franchising company provides training services
and an advertising campaign for the purchaser of the franchise.
In turn, the purchaser agrees to meet certain quality standards, provide certain products, and pay a
franchise fee to the franchising organization.

7. Franchise
Franchising is a method of distributing a product or service to achieve a maximum market impact with a minimum investment
A FRANCHISE AGREEMENT is an arrangement whereby someone with a good idea for a business (the FRANCHISOR) sells the rights to use the business name and to sell a product or service (the FRANCHISE) to others (the FRANCHISEE) in a given territory

8. Identify types of businesses in the Campbellton Area –6 businesses
Name of business
What form is the business?
Why do you think they chose that form?

9. Franchise assignment

10. All business fall into sectors
These sectors (also referred to as industries) include:
primary industries
secondary industries
tertiary industries
quaternary industries

11. Which form of business organization might be preferable
Which form of business organization might be preferable. Include scenarios such as:
• Ryan wants to take advantage of the trend for custom wedding and birthday cakes, working part time to produce supplemental income for his family.
• Susan is an exceptional photographer who wants to use her artistic abilities and become a professional photographer. She lacks capital and business knowledge.
• A group of five young engineers have developed a new technology enabling the creation of low cost motorcycles. They want to mass produce this product to meet the growing demand for low cost travel that is emerging in Africa.
• Clare and Judy are experienced and successful builders who have a long track record in building luxury homes. They want to capitalize on the aging baby boomer market and build a series of luxury condominiums across the province.