1. Add This to Your Notes (If It’s Not There Already) Market Failures Market Failures –1) Inadequate Information –2) Externalities –3) Inadequate Competition Role of Government Role of Government –#1 Correct Market Failures –#2 Enforce Private Property Laws –#3 Provide Public Goods –#4 Safety Regulations

2. On a blank sheet of paper Categories: Categories: –1) can be used up, access can be restricted –2) can’t be used up, access can be restricted –3) can be used up, access can’t be restricted –4) can’t be used up, access can’t be restricted

3. Copy This Chart on Blank Sheet of Paper Hint: Leave plenty of space in the empty boxes!

4. Business Type Activity Groups of 3 Groups of 3 –Owner –Writer –Logo Designer/Creator Read the information given to you, and work with your group to answer the questions and follow the directions. Read the information given to you, and work with your group to answer the questions and follow the directions. Raise your hand if you need help. Raise your hand if you need help.

5. Business Types

6. Listen, Don’t Write Sole Proprietorships Sole Proprietorships –72% of all businesses in America are sole proprietorships –account for only 6% of total sales –account for 23% of profits

7. Listen, Don’t Write Partnerships Partnerships –9% of all businesses in America –4% of sales –3% of total profits

8. Listen, Don’t Write Corporations Corporations –19% of all businesses in America –90% of sales –74% of total profits

9. 1) Which is the biggest disadvantage of a sole proprietorship? A) Price Leadership A) Price Leadership B) Interdependence B) Interdependence C) Double Taxation C) Double Taxation D) High Personal Liability D) High Personal Liability

10. 2) What is the name for the document that spells out how partners divide their profits & losses? A) Charter A) Charter B) Contract of Terms B) Contract of Terms C) Articles of Partnership C) Articles of Partnership D) Stock Certificate D) Stock Certificate

11. 3) Which business type can generally raise the most financial capital? A) sole proprietorship A) sole proprietorship B) small business B) small business C) partnership C) partnership D) corporation D) corporation

12. 4) Owners of corporations have: A) Unlimited Liability A) Unlimited Liability B) Limited Liability B) Limited Liability C) the responsibility of managing the corporation. C) the responsibility of managing the corporation. D) difficulty transferring ownership. D) difficulty transferring ownership.

13. 5) How many times is corporate income taxed? A) Corporate income is not taxed. A) Corporate income is not taxed. B) 1 time B) 1 time C) 2 times C) 2 times D) 3 times D) 3 times

14. Bell-ringer Week 3 #1 Write your thoughts on these questions: Write your thoughts on these questions: Who do you think has the most influence over our gov’t; citizens or corporations? Who do you think has the most influence over our gov’t; citizens or corporations? How do these groups influence our gov’t? How do these groups influence our gov’t? What do you think would happen if… What do you think would happen if… –corporations had no influence at all? –citizens had no influence at all?

15. Web Sites Drug Use by State Drug Use by State http://economix.blogs.nytimes.com/20 09/08/11/drug-use-across-the-united- states-or-rhode-island-needs-more- rehab/ http://economix.blogs.nytimes.com/20 09/08/11/drug-use-across-the-united- states-or-rhode-island-needs-more- rehab/ http://economix.blogs.nytimes.com/20 09/08/11/drug-use-across-the-united- states-or-rhode-island-needs-more- rehab/ http://economix.blogs.nytimes.com/20 09/08/11/drug-use-across-the-united- states-or-rhode-island-needs-more- rehab/