Business Organizations
Chapter 7 (pgs 144 – 167)
Key Terms
Sole Propietorship
Zoning Law
Liability
Collateral
Longevity
Partnership
General Partnership
Limited Partnership
Corporations
Articles of Incorporation
Corporate Charter
Board of Directors
Stock
Shares
Dividends
Common Stock
Preferred Stock
Corporate Bond
Principal
Interest
Merger
Horizontal Combination
Vertical Combination
Conglomerate Combination Subsidiaries Cooperatives
Nonprofit Organizations
Essential Questions













What are the advantages of establishing a sole proprietorship?
What are the disadvantages of establishing a sole proprietorship?
How do general partnerships and limited partnerships differ?
What are the advantages of organizing a partnership?
What are the disadvantages of organizing a partnership?
How is a corporation formed, and what are the characteristics of a corporation?
How is a corporation organized?
How do stocks and bonds differ?
What are the advantages and disadvantages of organizing a corporation?
How do vertical combinations differ from horizontal and conglomerate combinations?
Why might a business owner decide to open a franchise?
What is the customer’s role in a cooperative?
How does a nonprofit organization differ from other types of business organizations?
Essential Standards
12.2.3 Explain the roles of property rights, competition, and profit in a market economy.
12.2.5 Understand the process by which competition among buyers and sellers determines a
market price.
12.2.9 Describe the functions of the financial markets.
12.3.1 Understand how the role of government in a market economy often includes providing
for national defense, addressing environmental concerns, defining and enforcing property
rights, attempting to make markets more competitive, and protecting consumers' rights.