Business Organizations

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Mr. Bammel
 Sole
Proprietorships
 Partnerships
 Corporations
 Everyone
will be divided into groups of
3.
 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 is 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
Education Research Association
 Business Associations  Texas
Association of Soccer Coaches
 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.
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