1. By: Jacob Rogero, Sammy Geitz, and Richard Vera

3. Advantages of sole proprietorships  Ease of start up  Ease of Management  You keep all profits  You do not have to pay any business taxes  Psychological advantages  Ease of exit Economic Weakness of sole proprietorship:  Unlimited Liability: you have total responsibility for all debts and liabilities of the company  Difficulty in raising financial capital  Limited size and efficiency  Limited managerial experience  Limited Life

4.  If you started your own business what would it be?

6. Two major types of partnerships:  General Partnership: (most common type) all partners are responsible for management and the financial responsibilities of the partnership.  Limited Partnership: at least one partner is not active in the day to day running of the business. They have limited liability. Articles of Partnership : contract between partners spelling out the rules of partnership. Dividing profit Dividing responsibility Admitting new partners Buying out partners

7. Advantages of Partnerships:  Ease of establishment  Ease of Management: each partner has different things to offer  No special business taxes  Easier to raise financial capital  Larger than sole proprietorship  Easier to attract qualified workers Disadvantages of Partnerships  Unlimited liability  Limited partner is only responsible for his initial investment. He has limited liability.  Limited Life  Conflict between partners

9.  Incorporate: to form a corporation.  Charter: a document granted by the state giving a corporation the right to do business  Stock: shares of ownership in the corporation  Stockholders (shareholders): owners of stock. Reasons to own stock: Dividends: share of corporate profits paid to stockholders Speculation: buy in hope that price of stock will increase.

10.  Common Stock is a basic share of ownership in a corporation  Have voting rights in the management of the company  In reality they turn over voting rights to someone else with a proxy: giving someone else the right to vote your share of stock.  Preferred Stock : -Non voting shares of ownership -Guaranteed dividend -Liquidation benefit: If corporation goes out of business they are ahead of common stockholders in getting back money.  Board of Directors: duty to direct the corporations business by setting board policies and goals Elected by common stockholders  Hires a professional management team to run day to day activities. (CEO, CFO….)

11. Advantages of a corporation:  Ease of raising financial capital (main advantage)  Selling stock to investors  Selling bonds: a written promise to repay a loan on a specific date  Principal: the amount borrowed  Interest: the price paid for the use of another’s money  Borrowing money from banks.  Ability to hire  Limited liability  Unlimited life  Ease of transferring ownership:. Buying and selling stock is easy and is done millions of times a day  Disadvantages of a corporation:  Start up expenses are high.  Stockholders (owners) have a limited  Profits are taxed  Corporations are subject to more government regulations than sole proprietors or partners

12.  Using the Venn diagram, list the similarities and differences between Sole Proprietorships, Partnerships, and Corporations

13.  5 Reasons to merge- Make money faster, Increase efficiency, Acquire new product lines, Catch up or eliminate rivals, Lose a company identity.  Horizontal Merger- when two or more companies that product the same kind of product join forces.  Vertical merger- when two or more firms that are at different steps of manufacturing process join together.  Conglomerates- is a firm that has at least four businesses, each making unrelated products.

14.  With a neighbor, develop 2 examples of each type of merger-  Vertical  Horizontal  Conglomerate

15.  A nonprofit organization (NPO, also known as a non- business entity) is an organization that uses its surplus revenues to further achieve its purpose or mission, rather than distributing its surplus income to the organization's shareholders (or equivalents) as profit or dividends.  Some non profit organizations are  Museum of Modern Art  American Museum of Natural History  American Red Cross  Alzheimer's Association

17.  Hooters is one of Florida's largest corporations.  It was founded by 6 men that wanted to create a restaurant that they couldn’t get kicked out of.  The “Hooters Six” are L.D. Stewart, Gil DiGiannantonio, Billy Ranieri, Ed Droste, Dennis Johnson, and Ken Wimmer.  The first Hooters was opened on October 6th, 1983 in Clearwater, Florida.  Hooters went public in 1984 and expanded its stores outside of Georgia and Florida.

18.  This is a picture of the original “Hooters’ Girls.”  The trademark running shorts look was used because the first secretary used to wear them around the office.

19.  Today, we learned so much about the different types of business organizations.  We learned about sole proprietorships, partnerships, and corporations.  We also learned how Non-Profits work and how they help our community.

20.  http://www.kcsourcelink.com/learning- center/starting-a-business/register-and-license-your- business/forms-of-business-organization http://www.kcsourcelink.com/learning- center/starting-a-business/register-and-license-your- business/forms-of-business-organization  http://www.investopedia.com/walkthrough/corpora te-finance/1/forms-business-organizations.aspx http://www.investopedia.com/walkthrough/corpora te-finance/1/forms-business-organizations.aspx  http://highered.mheducation.com/sites/007353062x/ student_view0/ebook/chapter1/chbody1/1_2_forms_ of_business_organization.html http://highered.mheducation.com/sites/007353062x/ student_view0/ebook/chapter1/chbody1/1_2_forms_ of_business_organization.html  http://www.myownbusiness.org/s4/ http://www.myownbusiness.org/s4/