1. FrontPage: NNIGN The Last Word: Ch 8 Review/Unit 3 Test - Thursday

2. SOLE PROPRIETORSHIP  Advantages: Easy to open or close Few regulations Freedom and control Owner keeps all profits  Disadvantages:  Limited funds  Limited life  Unlimited liability – personally responsible for any debts

3. PARTNERSHIPS  Advantages Easy to open or close Few regulations Access to resources Joint decision making Specialization  Disadvantages  Unlimited liability  Potential for conflict  Limited life

4. CORPORATIONS  Advantages Greater access to funds Business run by professionals Limited liability Unlimited life  Disadvantages  Difficult to start up  More regulations  Double taxation  Owners have less control

5. Chapter 8, Section 3 (Part 2)

6. BUSINESS CONSOLIDATION Terms to know:  A horizontal merger describes the combining of companies that offer the same or similar products or services.  A vertical merger describes the combining of companies involved in different steps of production or marketing of a product or service.

9. BUSINESS CONSOLIDATION Terms to know  A conglomerate results from the merger of companies that produce unrelated goods or services.  A multinational corporation is a large corporation with branches in several countries. **Note: A company can be both of these, or it could be one or the other. They are not “mutually exclusive”…

11. Conglomerate: Proctor & Gamble

12. Chapter 8, Section 4

13. FRANCHISES  Made up of semi-independent businesses that offer the same products or services.  Each franchisee pays a fee to the parent company in return for the right to sell the company’s products or services in a particular area.  Most common in the fast food industry.

14. FRANCHISES  Advantages Training in running a business Proven, recognizable products National/regional advertising by franchiser

15. FRANCHISES  Disadvantages  Risk own money  Sharing of profit with franchiser  Limited control – ex. only offer franchiser’s products

16. Top Ten Franchises in 2013 1) Hampton Hotels 2) Subway 3) Jiffy Lube Int'l. Inc. Jiffy Lube Int'l. Inc. 4) 7-Eleven Inc.7-Eleven Inc. 5) Supercuts Supercuts 6) Anytime Fitness Anytime Fitness 7) Servpro Servpro 8) Denny's Inc. Denny's Inc. 9) McDonald's McDonald's 10) Pizza Hut Inc. Pizza Hut Inc.

17. COOPERATIVES  Operated for the shared benefit of the owners, who may also be the customers or employees. 3 Types:  Consumer co-ops: requires membership payments, but saves members money by purchasing goods in large volumes at a discount prices.

19. COOPERATIVES  Service co-ops: offer a service, ex. credit unions  Producer co-ops: Producers or workers join together to more efficiently process or market their goods; most common among farmers.

20. NONPROFIT ORGANIZATIONS  Institutions that act like businesses, but their purpose is to benefit society, not to make a profit.  Many are not required to pay taxes because they do not generate profits, but rather serve society.  Raise most of their money from donations, grants, or membership fees.