1. Forms of Ownership Mr. Eleuteri Introduction To Business Block 5

2. Do Now Can you guess which local businesses are run by 1 owner? How do you know this? Name 2 things best done on your own: Name 2 things where a partner is required:

3. Monday’s Goals To define sole proprietorship partnership, limited liability company(LLC) Identify which form of ownership is best suited for different types of businesses. List advantages and disadvantages of the different forms of ownership. Calculate debt relating to each form of ownership.Identify which local businesses fall into a particular form of ownership. Create a partnership agreement designating responsibility to different partners.

4. Sole Proprietorship One person who owns their own business Must be willing to work long hours Largest form of ownership in the U.S. Politicians refer to this as the “American Dream”

5. Advantages of a sole proprietor Profit motive Creativity Power (You are the boss) Independence Expansion possibilities Set your own hours

6. Disadvantages of Sole Proprietor Long hours Unlimited liability Stress

7. Liability Example/Connections If a car crashes then what does the word liability mean? If a business crashes then what does the word liability mean?

8. Partnerships When 2 or more people come together to run a business Synergy 1+1=3 Partners should complement each other to bring different skills into the mix Many businesses are partnerships and there are laws that govern partnerships Must be in writing

9. Complement example Peanut Butter- ___________________ Hot Dog- _________________ Starsky and __________________ Salt and ____________________ Peas and ____________________

10. Advantages of a Partnership Brings different skills together More sources of capital Share hours Synergies exist

11. Disadvantages of Partnership Unlimited Liability Stealing Disagreements Partner dies or becomes sick or develops an addiction (gambling or alcohol/drugs)

12. Silent Partner A partner who contributes capital to the business but has no say in the day to day operations of a business. Usually, a person sees this as an investment and looks for well managed businesses that need funding.

13. Secret Partner This type of partner does have a say in the day to day operations of a business but is not known to the public. Usually, this person was involved in either a past criminal activity or has a conflict of interest with the public.

14. Activities Match.com/ Please pair up with a partner and discuss likes and dislikes etc. Handout/ Please partner up and answer the following questions with a partner.

15. Exit Ticket List 3 advantages of a sole proprietorship List 2 disadvantages: Please do the same for partnerships: