1. Chapter 8 – Business Organizations

2. Who Are these people and why are they important?
Walt Disney
Walt Disney Corporation
Hugh Hefner Playboy Inc.

3. Who Are these people and why are they important?
Ben Cohen and Jerry Greenfield
Ben & Jerry's Homemade Holdings, Inc
Oprah Winfrey

4. Who Are these people and why are they important?
Bill Gates Microsoft Inc.
Steve Jobs Apple Computers Inc.

5. Who Are these people and why are they important?
Milton Hershey Chocolate
Marshall Field Clothing

6. What is an Entrepreneur?
A profit-seeker who develops a new product or process and assumes the risk of profit or loss

7. What is the purpose of Entrepreneurs?
Introduce new products
Improve Quality of Existing Products
Howard Schultz (Starbucks 1985)
Introduce new production methods
Henry Ford (Assembly Line)
Introduce new ways of doing business
Dell computers sold initially over internet only
Mary Kay sells directly to customers

9. Sole Proprietorship
A Business Owned and
Operated By One Person

11. Advantages Of Sole Proprietorships
Easy Start-Up- Cost and Legal Considerations Are Small
Full Control- One Person Is Responsible For The Business
Exclusive Right To Profit- The Profits Go To The Business Owner.

12. Disadvantages Of Sole Proprietorship
Unlimited Liability- Owner Is Financially and Legally Responsible For The Business.
Limited Growth Potential- One Owner May Not Be Able To Raise Enough Money To Grow The Business
Lack Of Longevity- Relying On One Person Limits The Ability Of A Business To Overcome Hardships.

13. Partnerships
Partnerships- A Business That Includes More Than One Persons That Share Equal Decision Making Authority.

15. Three Type of Partnerships
General
Limited
Limited Liability Partnership

16. General Partnership
All partners share equally in both responsibility and liability.

17. Limited Partnership
Only one partner is required to be a general partner

18. Limited Liability Partnership
All partners are limited partners

19. Advantages Of Partnerships
Ease Of Start-Up- Costs and Few Government Regulations Are Involved In Partnerships
Specialization- Each Partner Will Bring His/Her Own Unique Talents
Shared Business Losses- The Business Will Be Able To Face Adversity Better Than Sole A Proprietorship.

20. Disadvantages Of Partnerships
Unlimited Liability- If One Partner Does Not Fill Responsibilities Then The Other Partners Will Have To Pick Up The Slack.
Lack Of Longevity- If One Partner Drops Out Then The Other Partners Will Have To Struggle For Survival
Potential for Conflict