CHAPTER 3
BUSINESS ORGANIZATIONS
CHAPTER 3 SECTION 1:
FORMS OF BUSINESS
ORGANIZATION
MAIN IDEA: BUSINESSES MAY BE ORGANIZED AS
INDIVIDUAL PROPRIETORSHIPS, PARTNERSHIPS, OR
CORPORATIONS
VOCABULARY
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Sole proprietorship
Proprietorship
Unlimited liability
Inventory
Limited life
Partnership
Limited partnership
Bankruptcy
Corporation
Charter
Stock
VOCABULARY CONTINUED
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Stockholder
Shareholder
Dividend
Bond
Principal
Interest
Double taxation
NOTES
• What are the characteristics and organization of a
sole proprietorship?
• What are the advantages and disadvantages of a
partnership?
• Copy chart (figure 3.3) on page 64
ASSIGNMENT TO TURN IN
• Think of your 5 most favorite places to shop or get
service. List those places of business and tell what
kind of formal business structure they are: sole
proprietorship, partnership, or corporation
CHAPTER 3 SECTION 2:
BUSINESS GROWTH AND
EXPANSION
MAIN IDEA:
BUSINESSES MERGE AND INVEST TO
PRODUCE MORE.
VOCABULARY
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Merger
Income statement
Net income
Depreciation
Cash flow
Horizontal merger
Vertical merger
Conglomerate
multinational
NOTES
• How can firm generate funds internally to grow and
expand?
• What are 5 reasons that firms merge?
• What are the different ways business can merge?
ASSIGNMENT TO TURN IN
• Research a recent merger (you may use your
personal devices for this assignment) What are the
names of the companies that merged? What
statistics were provided (if any)? What other
information did you learn about the two
companies?
CHAPTER 3 SECTION 3:
OTHER ORGANIZATIONS
MAIN IDEA: PRODUCER AND WORKER
COOPERATIVES BENEFIT MEMBERS
VOCABULARY
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Non profit organization
Cooperative
Co-op
Credit union
Labor union
Collective bargaining
Professional association
Chamber of commerce
Better Business Bureau
Public utility
NOTES
• What are the purposes of the different types of
nonprofit organizations?
• How is the government directly and indirectly
involved as an economic institution?
ASSIGNMENT TO TURN IN
• Think of 4 non-profit organizations
• Create a chart to include: name of organization,
how it began and what its goals are, what does the
organization do with its extra money?
• You may use your electronic device to do research