1. Business Organizations 3 Types: Sole Proprietorship Partnership Corporation

2. Sole Proprietorship Sole Proprietorship A business owned and operated by one person DISADVANTAGES – Unlimited liability (all the responsibility) – Limited Growth – Lack of Longevity (don’t last a long time) ADVANTAGES – Easy to start the business – The owner has full control – The owner keeps ALL the profits! 75 % of all Businesses Examples: lawyers, plumbers, florists, hair stylists

3. Partnership A business that is controlled by two or more people. About 20% of all businesses. Examples: doctors, lawyers, accountants, small stores.

4. Partnership Advantages – Easy to start – More people involved so they can SPECIALIZE – Share decision making – Share COSTS! Disadvantages – Unlimited Liability (all the responsibility) – Lots of Conflict – Lack of Longevity (don’t last a long time) – Share the PROFIT

5. Corporations Definition: A business where a group of owners called stockholders share in the profits and losses Facts: About 10% of all businesses but they make 70% of all the $$.

6. Corporation Advantages – Limited Liability (you are not responsible for the whole business but you make some of the profit) – Longevity (they last a long time) – Easy to get capital for the business (just sale more stocks) Disadvantages – Expensive to start – Lots of government regulation – Share the profit – LITTLE control of the decision making

7. Corporations and Stock Market EXAMPLES of Stocks: DIS WALT DISNEY CO NEW DIS EP EL PASO CORP EP TXN TEXAS INSTRUMENTS INC TXN EBAY EBAY INC EBAY MCD MCDONALD S CORP MCD XOM EXXON MOBIL CORP XOM What does it look like: DowDow -350.69 -4.24% 7,920.18 NasdaqNasdaq -54.78 -3.44% 1,536.78 S&PS&P -37.89 -4.36% 832.00 30 largest companies Usually technology companies 500 US companies

8. Shareholders Board of Directors CEO (Chief Executive Officer) Vice President Employees Organization of Corporation Shareholders elect a Board of Directors Board of Directors hires CEO to make day-to-day decisions.

9. Corporation Definitions Stockholder- a part owner of a corporation, one who owns stock Dividend- what a stockholder gets paid Board of Directors- elected by stockholders; responsible for picking CEO CEO- Chief Executive Officer; makes the day to day decisions about the company