Introduction to Business © Thomson South-Western ChapterChapter Business Organization Business in the U.S. Economy Forms of Business Ownership Organizational Structure for Businesses 5

Introduction to Business © Thomson South-Western Chapter 5 Slide 2 LESSON 5-1 LESSON 5-1 Business in the U.S. Economy Goals Describe the changing status of U.S. employment. Discuss the role of business in the U.S. economy. Describe three major types of businesses.

Introduction to Business © Thomson South-Western Chapter 5 Slide 3 Key Terms contingent worker producer intermediary service business

Introduction to Business © Thomson South-Western Chapter 5 Slide 4 THE CHANGING U.S. JOB MARKET Employment data Pressures on employees

Introduction to Business © Thomson South-Western Chapter 5 Slide 5 >> C H E C K P O I N T List several groups that will increase as a percentage of the total U.S. workforce in the next decade.

Introduction to Business © Thomson South-Western Chapter 5 Slide 6 BUSINESS AND THE ECONOMY Size of businesses Roles of business Impact on a community

Introduction to Business © Thomson South-Western Chapter 5 Slide 7 NUMBER OF EMPLOYEES IN U.S. BUSINESSES

Introduction to Business © Thomson South-Western Chapter 5 Slide 8 BUSINESS ACTIVITIES Generating ideas Raising capital Employing and training personnel Buying goods and services Marketing goods and services Maintaining business records

Introduction to Business © Thomson South-Western Chapter 5 Slide 9 >> C H E C K P O I N T What are the six basic activities completed by all businesses?

Introduction to Business © Thomson South-Western Chapter 5 Slide 10 TYPES OF BUSINESSES Producers Intermediaries Service businesses

Introduction to Business © Thomson South-Western Chapter 5 Slide 11 >> C H E C K P O I N T How does a manufacturer differ from an extractor?

Introduction to Business © Thomson South-Western Chapter 5 Slide 12 LESSON 5-2 LESSON 5-2 Forms of Business Ownership Goals Understand the three major forms of business ownership. Determine when each form of business ownership is most appropriate. Recognize other specialized business ownership forms.

Introduction to Business © Thomson South-Western Chapter 5 Slide 13 Key Terms proprietorship partnership corporation partnership agreement articles of incorporation franchise

Introduction to Business © Thomson South-Western Chapter 5 Slide 14 BUSINESS OWNERSHIP Proprietorship Partnership Corporation

Introduction to Business © Thomson South-Western Chapter 5 Slide 15 FORMS OF OWNERSHIP

Introduction to Business © Thomson South-Western Chapter 5 Slide 16 >> C H E C K P O I N T What are the differences between the three main forms of business ownership?

Introduction to Business © Thomson South-Western Chapter 5 Slide 17 CHOOSING A FORM OF BUSINESS OWNERSHIP Choosing a proprietorship Choosing a partnership Choosing a corporation

Introduction to Business © Thomson South-Western Chapter 5 Slide 18 Proprietorship Advantages easy and inexpensive to start keep all the profits your own boss no special taxes flexibility success and recognition for your efforts

Introduction to Business © Thomson South-Western Chapter 5 Slide 19 Proprietorship Disadvantages unlimited liability limited capital limited life limited size and growth

Introduction to Business © Thomson South-Western Chapter 5 Slide 20 Partnership Advantages relatively easy to form additional capital compared to sole proprietorship can share ideas and responsibilities no special taxes

Introduction to Business © Thomson South-Western Chapter 5 Slide 21 Partnership Disadvantages unlimited liability limited life limited capital disagreements

Introduction to Business © Thomson South-Western Chapter 5 Slide 22 Corporation Advantages limited liability easy to transfer ownership unlimited life

Introduction to Business © Thomson South-Western Chapter 5 Slide 23 Corporation Disadvantages difficult and expensive to start double taxation regulations

Introduction to Business © Thomson South-Western Chapter 5 Slide 24 >> C H E C K P O I N T Which form of business ownership is the most complex and difficult to form?

Introduction to Business © Thomson South-Western Chapter 5 Slide 25 OTHER FORMS OF OWNERSHIP Specialized partnerships and corporations Cooperatives and franchises

Introduction to Business © Thomson South-Western Chapter 5 Slide 26 >> C H E C K P O I N T What are the other specialized forms of business ownership?

Introduction to Business © Thomson South-Western Chapter 5 Slide 27 LESSON 5-3 LESSON 5-3 Organizational Structure for Businesses Goals Understand important principles in designing an effective organization. Compare alternative organizational structures for businesses.

Introduction to Business © Thomson South-Western Chapter 5 Slide 28 Key Terms mission statement goal policies procedures organization chart

Introduction to Business © Thomson South-Western Chapter 5 Slide 29 DESIGNING AN EFFECTIVE BUSINESS ORGANIZATION Setting direction Principles of effective organization Responsibility, authority, and accountability Unity of command Span of control

Introduction to Business © Thomson South-Western Chapter 5 Slide 30 >> C H E C K P O I N T What is the difference between a mission statement and a goal?

Introduction to Business © Thomson South-Western Chapter 5 Slide 31 TYPES OF ORGANIZATIONAL STRUCTURES Functional organization structure Matrix organizational structure

Introduction to Business © Thomson South-Western Chapter 5 Slide 32 BUSINESS ORGANIZATION CHART

Introduction to Business © Thomson South-Western Chapter 5 Slide 33 >> C H E C K P O I N T What problems can result from the use of a functional organizational structure?