2. Sole Proprietorships  A business that is owned and managed by a single person.  The most common type of business in the US. (70% of American businesses)  Sole Proprietorships generate less than 5% of all sales in American business.

3. Sole Proprietorships Advantages: - Relatively easy to open or close. - There are few regulations. - Owners have freedom and near total control of their business - Owners keep all the profits.

4. Sole Proprietorships Disadvantages: - Limited funding: startup cost fall completely on the owner. - Limited Life- the business ceases to exist if the owner leaves, dies or retires. - Unlimited Liability- owners are totally responsible for all losses, debts and claims against the business.

5. Sole Proprietorships Examples: - Edmonson’s Barber Shop on hwy 31 - Wayne’s Produce - Lovett Woodworking

6. Partnerships  A business that is co-owned by two or more people.  Partners are often responsible for different aspects of the business.  There are three different types of Partnerships.

7. Partnerships Type 1: General Partnerships - Where partners share responsibility for managing the business and each partner is liable for all debts and losses.

8. Partnerships Type 2: Limited Partnerships - When at least one partner is not involved in the day-to-day running of the business and is only responsible for the money they have invested. - This person is basically an investor.

9. Partnerships Type 3: Limited Liability Partnership - Where partners are limited partners and not responsible for the debts and liabilities of the other partners.

10. Partnerships Advantages: - Easy to open and close - Few regulations - Access to the resources of the other partners

11. Partnerships Disadvantages: - Unlimited liability (most partnerships) - Potential for conflict - Limited life

12. Corporations - A business owned by individuals (shareholders) that own the rights to the company’s profits, but face limited liability of the company’s debts and losses. - Shareholders acquire ownership through the purchase of stock; shares of the corporation.

13. Corporations  As a stockholder your only risk is the amount of money that you have invested in the company, not for any debts that the company may have acquired.  Some stocks pay dividends or parts of the profits given directly to the share holder.

14. Corporations  A public company allows anyone to buy their stock, while a private company retains control over who can buy or sell the stock.

15. Corporations Advantages: - Access to resources - Professional management - Limited liability - Unlimited life (business will continue regardless of who enters and leaves)

16. Corporations Disadvantages: - High start-up cost - Heavily regulated by the government - Double taxation (yikes!) - Potential loss of control

17. Other Good Stuff Horizontal Merger: - The joining of companies that offer the same or similar goods or services. Vertical Merger: - Companies that combine who offer several different steps of production of a product or service. * More on next Slide

18. Horizontal vs. Vertical Horizontal Example: - Standard Oil/ John Rockefeller Vertical Example: - Carnegie Steel/ Andrew Carnegie

20. More Good Stuff A conglomerate is a merger of companies that produce unrelated products or services. Examples: - Colgate-Palmolive Company - AT&T bought out Direct TV. Through growth, an enterprise can become a multinational corporation which means it have several branches in several different countries. Examples: - McDonalds - Wal-Mart

21. Classroom Activity Yay! Listen to Mr. Lovett while he explains what you will be doing in class for the next two days. Hey, that’s me! >

22. Resources  Meek, Morton and Shug, M. (2011). Economics: Concepts and Choices. Orlando, Florida: Holt McDougal.  http://www.twpunionschools.org/Departments/Business/__ccms_gallery_images/81fee3fe-7fde-4039- b858-956204196013.jpg http://www.twpunionschools.org/Departments/Business/__ccms_gallery_images/81fee3fe-7fde-4039- b858-956204196013.jpg  http://www.lloyds280.com/Lloyds_280.jpg http://www.lloyds280.com/Lloyds_280.jpg  http://3.bp.blogspot.com/- DR7t3dWRJrQ/UcoQo2olbNI/AAAAAAAAAHo/LGu3rHLbDPw/s1600/business-law.png http://3.bp.blogspot.com/- DR7t3dWRJrQ/UcoQo2olbNI/AAAAAAAAAHo/LGu3rHLbDPw/s1600/business-law.png  http://www.thesole.com/wp-content/uploads/2012/07/SoleLogoColor6.png http://www.thesole.com/wp-content/uploads/2012/07/SoleLogoColor6.png  https://fbcdn-photos-a-a.akamaihd.net/hphotos-ak-xpa1/v/t1.0- 0/s480x480/11231263_10153100306602775_8441914192876136301_n.jpg?oh=b8a1de0b26adab75 7edc9d52c85acdd8&oe=56915499&__gda__=1451742310_750da217cc5493e3aeec05113956c9f5 https://fbcdn-photos-a-a.akamaihd.net/hphotos-ak-xpa1/v/t1.0- 0/s480x480/11231263_10153100306602775_8441914192876136301_n.jpg?oh=b8a1de0b26adab75 7edc9d52c85acdd8&oe=56915499&__gda__=1451742310_750da217cc5493e3aeec05113956c9f5  http://www.logisticsstrategies.com/wp-content/uploads/2011/03/partnership.jpg http://www.logisticsstrategies.com/wp-content/uploads/2011/03/partnership.jpg  http://www.jona-xiao.com/wp-content/uploads/2013/02/tv-2-broke-girls05.jpg http://www.jona-xiao.com/wp-content/uploads/2013/02/tv-2-broke-girls05.jpg  http://sites.csn.edu/bgutschick/fin101_ch12/stock_microsoft.jpg http://sites.csn.edu/bgutschick/fin101_ch12/stock_microsoft.jpg  http://sim02.in.com/62/40fc6ef25f5014bb56f33909152319b5_pt_xl.jpg http://sim02.in.com/62/40fc6ef25f5014bb56f33909152319b5_pt_xl.jpg  http://www.seattlesmallbizlawyer.com/wp-content/uploads/2014/02/6263542143_28e02e831e.jpg http://www.seattlesmallbizlawyer.com/wp-content/uploads/2014/02/6263542143_28e02e831e.jpg  http://image.wikifoundry.com/image/3/N_dHXvCvZ2cwEBbBNK2MWg129837/GW777H521 http://image.wikifoundry.com/image/3/N_dHXvCvZ2cwEBbBNK2MWg129837/GW777H521