Mr. Southward

 Sole Proprietorships  Partnerships  Corporations

 Everyone will be divided into groups of 4.  Each group will be given 1 of the major 3 types of Business organization. Your job as a group will be to examine that business organization in great detail and create a poster displaying the necessary information.

 Explain the details of WHAT that type of business organization is focused on. Definition, Characteristics, etc.  Advantages – major concept with explanation of advantage  Disadvantages – major concept with explanation of disadvantage  Bold Concepts of the section (defined on your page and underlined/highlighted in some form).

 Sole Proprietorships (Pages 57-59)  Partnerships (Pages 60-62)  Corporations (Pages 62-65)

 Now we will have all the other people in the room make their way around the room and fill in the information about each Business Organization.

 A business owned and run by one person and is the easiest to set up;  Advantages: Ease of set up Ease if management Owner receives all profits No separate business taxes Psychological satisfaction Ease of getting out

 Disadvantages: Unlimited Liability Difficult to raise financial capital Small size and lack of efficiency Limited managerial experience Difficult to attract qualified employees Limited life

 Business jointly owned by two or more persons; Types include general, limited, and limited Liability;  Advantages: Ease of establishment Ease of management No special taxes Easier financial capital Slightly larger size Easier to attract qualified employees

 Disadvantages: Each partner is fully responsible for other partners Limited life Potential for conflict

 A business recognized by law as its own legal entity; therefore the owners and operators are separate;  Advantages Ease of raising financial capital Hiring professional managers Limited liability of owners Unlimited life

 Disadvantages Difficulty and expense of getting a charter Owners have little or no say in the operations Double Taxation More government regulations due to size.

 Businesses can grow in one of two ways: reinvesting profits or a merger – a combination of 2 or more businesses to create a single business.

 Investing in factories, machines and new technologies to promote growth.  Process of examining your net income (subtracting expenses from revenues) and coming to the cash flow, or the measure of profits for the business, to establish money that can be reinvested.

 Growth at a quicker rate  Development of better efficiency  To help with the production of a better product  A process to eliminate a rival  For just a change of an image

 I would like for you to create a collage of pictures which will represent all the types of mergers and other business organizations.  For each type, draw and label the picture and then provide a quick 1-2 sentence explanation of how your picture displays the concept.

 Horizontal Merger  Vertical Merger  Conglomerate  Multinational  Consumer Cooperatives  Service Cooperatives  Producer Cooperatives  Labor Unions  Professional Associations  Business Associations

 Horizontal Merger  United and Continental Airlines  Vertical Merger  If Ford were to merge and a parts company  Conglomerate  If Nike were to merge with 3M  Multinational  McDonald’s

 Consumer Cooperative  Puget Consumers Coop (also Credit Unions)  Service Cooperative  Management Agencies  Producer Cooperative  Seen in farm commodities  Labor Unions  United Steel Workers

 Professional Association  American Psychological Association  Business Associations  AFL/CIO

 Some government agencies produce and distribute goods and services just like any other corporation.  Examples would be US Postal Service, Police, Fire Protection, etc.  All ways provide a direct aspect of the productive process

 Acting as an umpire/regulating force for all businesses and consumers.  Also when government provides help/money to those in need in particular situations; student loans, Social Security, etc.