1. Making the Market Economy Work: Business and the Entrepreneur “Types of Business Ownership”

2. Sole Proprietorship: 70% Single owner Owner has complete control of the business Owns all profits & suffers all losses Owner is PERSONALLY RESPONSIBLE for all business debts and actions – “liability” Might be difficult to raise capital (money) to operate the business

3. Partnership: 10 % A business with two or more owners Partners can raise more financial capital There is shared risk, so if the business fails, all partners share losses Partners may have different expertise Profits are shared Liability is still unlimited so all partners are responsible Sometimes partners disagree and a partnership is difficult to dissolve

4. Corporations: 20% A company chartered by the state and owned by stockholders. The stockholders are represented by a board of directors Stockholders are only liable for company actions and debts to the amount invested – this is limited liability It is easy to raise capital It is easy to transfer ownership - all you have to do is sell the stock Corporations are subject to government regulation Individual stockholders have little say in company operations Corporations are also taxed significantly – because profits are taxed. Profits are “dividends”

5. Sweet Opportunities Read the client stories. Prepare a recommendation for which form of business organization you think is best for each. State the reasons why – positives Acknowledge one negative and how the client can minimize its effects

6. Sweet Success! Client 1: Gertrude Hawk Client 2: Hershey Foods Corporation Client 3: Mars, Inc. Client 4: Famous Amos Cookie Company