1. Chapter 3: Business Organizations Have out your notebook and be ready to answer some questions!! Are you a risk taker??

2. Imagine you came into some money and used it to start a business. What would good or service would you sell? In your notebook with today’s date, write down what type of business you would like to open and be ready to jot down some answers to questions about your business.

3. Question #1 You prefer to a) get all the profits but take all the risks b) share equally with others in the profits and the losses c) get only partial profits but have little risk

4. Question #2 You want to make a) all business decisions quickly b) joint decisions with competent people c) money, not decisions

5. Question #3 You plan to a) take out a small loan against your own assets b) get help to borrow a larger amount c) borrow a huge sum of money

6. Question #4 You prefer paying a) personal income taxes on all profits b) fewer taxes on less profit c) a high tax rate rather than having unlimited liability

7. Question #5 You would be most satisfied as a) your own boss b) part of a successful team c) part owner, but not operator, of a business

8. Question #6 You will risk your investment a) and personal assets on your decisions b) and personal assets on a colleague’s decisions c) but not your personal assets

9. Question #7 In order to expand your business, you are willing to a) buy a computer, but that’s all b) agree to a division of duties and profits c) file articles of incorporation and sell stock

10. Question #8 After you leave the business, you think it will a) dissolve b) operate under a different name c) continue as long as it earns a profit

11. (a) Sole Proprietorship If you picked (a) the most, congrats…you are a risk-taker and like to be in control! You want all the rewards, to make all the decisions, and you are willing take all the risks & responsibilities!!

12. (b) Partnership If you picked (b) the most…congrats, you work well with others!! You want to share the responsibilities and risks but will also share the rewards and decision making.

13. (c) Corporation If you picked (c) the most…congrats, you think big and want to make BIG money!! With this type of business you have the opportunity to make a ton of money with little responsibility and work. You must be willing to sacrifice money now with the hope of money later!!

14. SOLE PROPRIETORSHIP One Owner Small in Size but Numerous –S.P. make 5% of money in U.S., but make up 73% of all businesses in U.S. Examples: Salons, Auto Repair, Restaurants, Bars, etc.

15. PARTNERSHIP At least two connected owners Bigger in terms of money, but still few in # –Partnerships make 7% of money in U.S., but make up 5% of all businesses in U.S. Examples: Law Firms Medical Practices

16. CORPORATION Many, even thousands, of disconnected owners HUGE in terms of money, –Corp. make 90% of money in U.S., but make up 20% of all businesses in U.S. Examples: International Chain Companies SonyMcDonalds GMDellEbayTarget

17. Sole Proprietor PartnershipCorporation Ad vant ages Dis ad vant ages

18. Top Ten: Your Category is Most Valuable Global Brand Names!! Here is your hint: These are companies that sell goods internationally: Here are there industries: 2 Automotive1 Leisure 1 Food Retail5 Technology 1 Beverage

19. Most Valuable Global Brand Names 10. Mercedes-Benz 9. Disney 8. McDonald’s 7. Intel 6. Toyota 5. Nokia 4. General Electric 3. IBM 2. Microsoft 1. Coca-Cola