1. Business Structures
Sole Proprietorship: a business owned by one person
Partnership: an association of two or more people operating a business as co-owners
Franchise: written contract granting permission to someone else to sell a product or service over a period of time
Cooperative: owned by members it serves and is managed in their interest
Corporation: a business that is made up of a number of owners but authorized by law to act as a single person
Business: an establishment or enterprise that supplies goods and services in exchange for some form of payment

2. Business Structures cont.
Sole proprietors and partners have unlimited liability for the debts of their businesses while the owners of corporations can only lose the amount they have invested
Sole proprietorships and partnerships are easily formed while corporations must file reports with a state and obtain official approval
Managers of all businesses must plan, organize, staff, lead, and control to be effective
Specialized forms of business organizations include franchises, cooperatives, and non-profit corporations.

3. Business Structures cont.
The three most widely used business structures to set up a business are (1) Sole Proprietorship (2) Partnership and (3) Corporations.
Sole Proprietorship
Advantages:
Easy to start business
Owner makes all the decisions/ their the boss
Owner receives all the profits
Disadvantages:
Capital(money) is limited to what owner can supply or borrow
Owner is liable(responsible) for all debts, even losing personal property if business fails

4. Business Structures cont.
Sole Proprietorship
Disadvantages:
Capital(money) is limited to what owner can supply or borrow
Owner is liable(responsible) for all debts, even losing personal property if business fails
Long hours and hard work
Life of business depends on owner
Partnership
Advantages:
Fairly easy to start the business
More sources of capital available
More business skills available

5. Business Structures cont.
Partnership
Disadvantages:
Each partner is liable (responsible)for the debt all partners make
Each partner can make decisions/ more than one boss
Partnership ends if a partner dies
Each partner shares in the profits
Corporation
Advantages:
More sources of capital available
Specialized Managerial Skills available
Owner is liable up to amount of investment in business
Ownership can easily be transferred through sale

6. Business Structures cont.
Corporation
Disadvantages:
Difficult to start a corporation
Owners do not have control over day-to-day decisions
Business activities of corporation limited to those stated in articles of incorporation

7. Class Work
What are the differences between a sole proprietorship and a corporation?
What are the advantages of having a corporation?
What are the disadvantages of a partnership?
What is a franchise?
What are the disadvantages to a corporation?

8. Do Now to Turn In 9/26 12 min
Read the provided handouts and answer the questions completely with support from notes for your answers.

9. Manager as Leader cont.
Leadership style: the way a manager treats and directs employees
Tactical management: a leadership style where the manager is more direct and controlling
Strategic management: a leadership style where managers are less directive and involve employees in making decisions
Mixed management: a combination of strategic and tactical management

10. Manager as Leader cont.
Leadership: the ability to influence individual and groups to accomplish important goals.
Human relations: the way people get along with each other
Position influence: the ability to get others to accomplish tasks because of the position the leader holds.
Reward influence: results from the leader’s ability to give or withhold rewards.
Expert influence: when group members recognize that the leader has special expertise in the area.
Identity influence: stems from personal trust and respect members have for the leader

11. Manager as Leader cont. Leadership Characteristics:
Understanding Intelligence
Initiative
Dependability
Judgement
Objectivity
Confidence
Stability
Cooperation
Honesty
Courage
Communication

12. Manager as Leader cont. A manager should use tactical management when:
Working with part-time employees
Working with employees who are not motivated
Working under tight time pressures
Assigning a new task for which employees are not experienced
Employees prefer not to be involved in decision-making

13. Manager as Leader cont.
A manager should use strategic management when:
Employees are skilled and experienced
The work is routine with few new challenges
Employees are doing work they enjoy
The manager wants to improve group relationships
Employees are willing to take responsibility for the results of their work

14. Producing & Marketing Goods & Services
Steps in Developing a New Product:
Develop a new product idea
Test the product idea with prospective consumers
Construct a product model and test it
Design production and marketing procedures
Develop budget for production and marketing costs and forecast potential sales
Prepare facilities for manufacturing

15. Producing & Marketing Goods & Services cont.
Marketing Strategy: a two-step process used to plan and market products Marketing Strategy Steps Identify a target market Develop a marketing mix Target market: a clearly identified group of consumers with needs that the business wants to satisfy Marketing mix: a combination of marketing elements designed to meet the needs of a target market

16. Producing & Marketing Goods & Services cont.
The 4 Ps of Marketing
Product
Place
Price
Promotion
Channel of distribution: the path that a product travels from producer to consumer