1. BUSINESS ORGANIZATION: Objective 9.7
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2. A new business must be organized and managed in a way to produce goods and services effectively and efficiently
How a business is organized depends on its size, its purpose and the number of owners.

3. BUSINESS ORGANIZATION
sole proprietorship
partnership
corporation

4. Entrepreneurs start businesses or create new products and ideas
Role of Entrepreneurs
Entrepreneurs start businesses or create new products and ideas

5. A business organization owned by one person
sole proprietorship
A business organization owned by one person

6. Examples of sole proprietorships
Beauty shops, small restaurants, boutiques, and other small stores serving a surrounding neighborhood

7. sole proprietorship advantages
Own boss
Set hours of operation
Set rules for operation
Receive all profits

8. sole proprietorship advantages
Responsible for success of business

9. sole proprietorship disadvantages
Supply all capital
Supply capital goods
Pay workers and taxes

10. sole proprietorship disadvantages
Takes all the risk
Responsible for failures

11. partnership
Businesses in which two or more people share cost, responsibilities, losses, and profits

12. Examples of partnerships Lawyers, doctors, dentists, contractors

13. partnership advantage
Great amount of capital
Shared risks and responsibilities
Greater chance of success

14. partnership disadvantage
Sometimes, partners disagree and dissolve the business

15. corporation definition
A business organization charted by a state gov’t. and given power to conduct business, sell stock, and receive protection of state laws

16. Examples of corporations
Ford Motor Company, American Airlines, Farm Fresh, Shell Oil Co., and Taco Bell

17. corporation advantage
Permanent organization
Many people share responsibilities and risks
Run by a Board of Directors

18. corporation advantage
Owned by stockholders

19. corporation disadvantage
Investors share the profits
Board of directors made major decisions – shareholder has only a small voice