1. Business, Labor & Unions (BLU) #1 Starting your own business Imagine your Econ teacher has just assigned you a major project. This project is to be done by each individual. What are the advantages of doing a project by yourself? What are the disadvantages? Imagine your Econ teacher has just assigned you a major project. This project is to be done by a group of 4. What are the advantages of doing a project in a group? What are the disadvantages?

2. Entrepreneur: takes an idea, turns it into a marketable product, accepts risk & claims either the profit or loss 1.New product 3D TV, Segway 2.Improve quality of existing product Starbucks coffee 3.New production methods Henry Ford 4.New ways of doing business –Netflix

3. Sole Proprietorship Sole Proprietor: individual who owns the company, self-employed Think of a few local companies. Do you think are owned by a single person or a large company?

4. ADVANTAGES ADV: –Easy to start: may only need a business license –Few gov regulations (besides taxes) –Complete control: it’s all yours! –Keep all the profit –Lower taxes –Pride of ownership: it’s all yours!

5. Disadv. 1.Liability : legal obligation to pay debts, in SP owner is completely responsible 2.Financial Capital: “start-up” money, in SP you must get the cash (from bank or ??) 3.Limited life: lasts only as long as the owner 4.Difficulty in getting & keeping good employees 5.Un limited responsibility: it’s all yours!

6. BLU #3: Partners!

7. Partnerships: co-owners of a business (lawyers, dentists, etc) 1.Easy to start: may need legal paperwork to define roles 2.Few gov regulations (except taxes) 3.Shared decision making

8. More ADV. 4.Increased specialization : each 1 can focus on something 5.Easier to raise financial capital b/c there’s 2+ ppl 6.Easier to keep employees 7.Lower taxes

9. Disadv 1.Unlimited personal liability 2.Limited life of business 3.Partners may disagree 4.Share profits!

10. If you were to open a restaurant would you choose to operate it as a sole proprietorship or as a partnership?

11. Compare & contrast a sole proprietorship with a partnership (the venn)

12. BLU #4: Papa John’s Pizza pg. 146 1.How did John get his start in the pizza industry? 2.What is his philosophy on pizza? 3.How successful has he been? Give 2 specific reasons. 4.How has he responded to competition? How does he use product differentiation (make his product different)? How does he handle pricing?

13. BLU #5: pg. 240 #1, 2, 3, 4, 7

14. -HTML- How To Make a Living

15. 14917 Cordary Ave., Hawth. 3 BD, 1 Bath 1, 037 Sq. Feet Detached 2 Car Garage Hardwood Floors Hot Tub PRICE?

16. $439,900 $88,000 down payment (20%) Monthly payment $1,880 for 30 years