1. Bell Work Objective: Objective: Explain the characteristics of the different types of businesses Explain the characteristics of the different types of businesses Bell Question: Bell Question: What is an example of a business that you your self could own and operate right now? What is an example of a business that you your self could own and operate right now?

2. Types of Businesses

3. Sole Proprietorships: Business owned and managed by a single individual Advantages Simple to establish Simple to establish Sole receiver of Profit Sole receiver of Profit Full Control Full Control Easy to discontinue. Easy to discontinue. Disadvantages Unlimited Personal Liability Unlimited Personal Liability Limited resources Limited resources Lack of Permanence Lack of Permanence

4. Partnership- Business with 2 or more owners Advantages Shared Decision making Shared Decision making Larger Pool of Capital Larger Pool of Capital Shared responsibility Shared responsibilityDisadvantages Potential for conflict Potential for conflict Have to split the profit Have to split the profit

5. Corporations: A legal entity owned by individual stockholders Advantages Limited liability Limited liability Transferable ownership Transferable ownership Ability for capital Ability for capital Potential for growth Potential for growth Long life Long lifeDisadvantages Expensive to start up Expensive to start up Double taxation Double taxation Loss of control Loss of control More regulations More regulations

6. Business Franchises- a semi-independent business that pays fees to a parent company to sell a certain product or service. Advantages Management training/support Management training/support Standardized quality Standardized quality National Ad campaigns National Ad campaigns Buying power-bulk Buying power-bulkDisadvantages High franchise fees High franchise fees Strict operating standards Strict operating standards Limited product line Limited product line

7. Other Organizations Cooperative Organization- owned and operated by a group of individuals for shared benefit Cooperative Organization- owned and operated by a group of individuals for shared benefit Nonprofit Organizations- are in the business of benefiting society but not for profit. Ex: American Red Cross, YMCA, KIVA Nonprofit Organizations- are in the business of benefiting society but not for profit. Ex: American Red Cross, YMCA, KIVA Professional Organizations- works to improve the image, working conditions and skill levels of people. Professional Organizations- works to improve the image, working conditions and skill levels of people.

8. Ticket Out: Which of the types of businesses do you think you would rather participate in? Why? Which of the types of businesses do you think you would rather participate in? Why?