1. Business Organizations and Competition
Microeconomics
Business Organizations and Competition
Purpose: Discuss the various forms businesses.

2. Horrible Business Activity
Develop an idea for a HORRIBLE business and answer the following questions:
What is your product, or service?
Where should you locate the business?
How much should you charge for the products or service?
How will you split the profits? Who is responsible for the losses?

3. I. Goals
Identify the advantages and disadvantages of owning a sole proprietorship or partnership.
Describe the three types of partnerships.
Provide examples of sole proprietorships and partnerships.

4. II. Types of Business Organizations
Sole Proprietorships
Partnerships
Corporations
Business Franchises

5. III. Sole Proprietorships
Advantages
Least regulated
Easy to start
Owner in full control
Sole receiver of profit
Disadvantages
Lack of permanence
Unlimited personal liability
Limited on access to resources

6. IV. Partnerships General Partnership Limited Partnership
Partners share equal responsibility
Limited Partnership
One partner has liability while others only contribute money
Limited Liability Partnership
All partners are limited

7. IV. Partnerships Advantages Disadvantages
Has more stability and access to resources
Easy to start up
Shared decision making and specialization
Not subject to double taxation
Disadvantages
All partners share liability (general partnerships)
Potential for conflict and disagreements
Death of one partner may end the business if they cannot be replaced