1. Bell Ringer – 3/7/08 1. Name 3 examples of businesses or professions that may act as a partnership. 2. What is an advantage to maintaining a partnership? 3. Why might partners face conflict between one another while running a partnership?

2. Corporations ► Legally distinct from their owners and are treated as if they were individuals. ► Own property, hire workers, make contracts, pay taxes, sue, and make products ► Ex: Oil companies, insurance companies, supermarket chains, etc.

4. Corporate Structure ► Corporations require structure to identify decision-making power and responsibilities ► Structure varies based on size and in the goods and services they produce ► Board of directors – a corporation’s key decision-making body.

5. Corporate Finance ► Stock – corporations raise funds by selling stock - ownership of the firm ► Shares – portions by which ownership (stock) is issued  Buy 100 shares of stocks = you own 100 “pieces” of the company  If company has issued 10,000 shares, you own 1% of the corporation

6. Why own stock? ► Investment – you hope that the company will do well, so that your shares will increase in value and you will receive part of the profits ► Dividends – profits paid to you as a shareholder. Received as a “return,” or profit, on your investment

7. Homework ► Read Ch 7, Sn 3 (pgs 153-158) ► Answer questions 1 and 3 on page 158 (due Monday) ► 8 checks due for stock project next week