1. Activator – Chapter 8 Write down three occupations that you’re considering for your future. Categorize each of your choices based on who your employer might be for each job. JobEmployer1. 2. 3.

2. Chapter 8 - Business Organizations Business organization (firm) –establishment formed to carry on a commercial enterprise. 3 types - Sole proprietorship, partnership, corporation Each has different levels of liability (responsibility) Liability – legal obligation to pay debts incurred by the business Each are engaged in bringing goods, services, or both to consumers in the market

3. Sole proprietorship – a business owned and managed by a single individual Most common type of business organization 75% of all businesses are sole proprietorships in the U.S. Sole Proprietor http://www.arete-basketball.com/

4. Partnership Partnership – a business organization owned by two or more persons who agree on a specific division of responsibilities and profits Account for about 5 % of all businesses General Partnership – partners share equal liability and responsibility Doctor’s lawyers, accountants, small family businesses Limited Liability Partnership – all partners are limited from personal liability, in the case of another partners mistakes. Legal buffer from personal liability Articles of Partnership – outline the agreements between partners.

5. Corporation Corporation – is a separate legal entity, or legal being, owned by individual stockholders, each of whom faces no liability for the firm’s debt Stock – a certificate of ownership in a corporation Partial owner, i.e. 1000 shares, purchase 1, 1/1000 th owner of the company Corporation has a separate legal identity, an entity separate from its owners Account for 20% of all businesses, but 90% of all products sold

6. Figure 3.3 Ownership, Control, and Organization of a Typical Corporation

7. Corporation Closely held – privately held corporations, that do not trade stock on the public exchange Publicly held – sells stock on the market to investors in order to grow the business

8. Mergers Merger – combine with another company to become one entity Horizontal merger – firms in the same market with a similar good or service merge Vertical merger –firms involved in producing different goods or services merge Conglomerates – business mergers with more three or more businesses Multinationals – large corporation that produces and sells its goods and services throughout the world

9. Other Organizations Business Franchise – semi-independent business that pays fees and royalties to a parent company Business is granted right to sell using the name, product and brand of the company Zaxbys, McDonalds, Subway, etc. Cooperative – Co-0ps, business organization owned and operated by a group of individuals for their shared benefit

10. Other Organizations Nonprofit Organizations – business that gears towards benefiting society (philanthropy) Labor Unions – organized group of workers whose aim is to improve working conditions, hours, wages and fringe benefits for its members.