1. BELL RINGER  In your opinion, what are the three most important traits that determine the success of an entrepreneur? Why do you feel these are the most important?  Do you have what it takes to be a successful entrepreneur? List the traits you feel you possess and those you feel you may lack.

2. BUSINESS FIRMS

3. EVERY BUSINESS BEGINS WITH A PROBLEM  Have you ever thought of a great idea for a new product/service?  Do you have any recurring issues (“pain points”) that you wish someone would provide a solution to?  https://www.youtube.com/watch?v=dZAy-VEo0sw https://www.youtube.com/watch?v=dZAy-VEo0sw

4. DEFINITION OF A BUSINESS FIRM  An organization that uses resources to produce goods and services sold to consumers, other firms, or the government.  Deep thoughts with the Economics textbook (p. 158)

5. SOLE PROPRIETORSHIP  Owned by one individual, who makes all decisions and receives all profit (or losses!).

6. PARTNERSHIP  Owned by 2 or more co- owners who share profits and liability.

7. CORPORATION  Legal entity that conducts business in its own name just as an individual does and is owned by stockholders who purchase shares of the company.

8. WITH A PARTNER…  On your notes, list one example of each type of business firm.  Next, List two advantages and two disadvantages of each type.

9. SOLE PROPRIETORSHIP  Owned by one individual, who makes all decisions and receives all profit (or losses!). AdvantagesDisadvantages Easy to set up! Total control of company/decision- making Keep 100% of profits Only taxed once—individual income tax Owner dies/business dies with him/her No sharing of decision-making Total liability!

10. PARTNERSHIP  Owned by 2 or more co-owners who share profits and liability. AdvantagesDisadvantages Easy to set up! Shared liability Decision-making—expertise advantage Only taxed once—individual income tax for both partners Partners don’t always get along or have same vision Although shared, still personally liable for legal/financial issues Must share profits

11. CORPORATION  Legal entity that conducts business in its own name just as an individual does and is owned by stockholders who purchase shares of the company. AdvantagesDisadvantages Limited liability—can only lose what one invested Diverse decision-making/corporate structure Access to capital—stocks & bonds Lives on FOREVER! Difficult to start—legal/financial process Loss of creative control and decision- making power Taxed TWICE—profit and shareholders

12. BELL RINGER  List the three types of business firms we discussed last class.  Write an advantage and disadvantage for each—be sure to include liability and taxation!

13. SWEET OPPORTUNITIES ASSIGNMENT 1. Get in groups of 3 or 4. 2. Read through the client list as a group and discuss which form of business organization best suits the client’s particular situation. 3. Make a recommendation for each client. 4. Include the following in your recommendation: 1. Which type of business the client should pursue & 3 reasons for that recommendation. 2. At least one possible disadvantage to the form of business you recommended & ideas for mitigating this disadvantage.

14. WRITTEN RESPONSE/DISCUSSION  "There is one and only one social responsibility of business -- to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud." -Milton Friedman, New York Times Magazine, September 1970