Course Title: Principles of Business, Marketing, and Finance
Session Title: Lesson Two -Forms of Business Ownership
Performance Objective:
•
Upon completion of this lesson, the student will describe and contrast forms of business ownership.
Specific Objectives:
•
Students will identify types of businesses.
•
Students will compare alternative ways to do business.
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Students will describe three major types of businesses.
•
Students will discuss the role of business in the U.S. economy.
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed.
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130.112(c)(1)(D) compare the different forms of ownership
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130.112(c)(1)(A) explain the role of business in a global society
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130.112(c)(1)(B) differentiate between goods and services
Interdisciplinary Correlations:
English
110.42(b)(6)(A) – Vocabulary Development
…expand vocabulary through wide reading, listening, and discussing
110.42(b)(6)(B) – Vocabulary Development
… rely on context to determine meanings of words and phrases such as figurative
language, idioms, multiple meaning words, and technical vocabulary
110.42(b)(7)(F) – Reading/comprehension
…identify main ideas and their supporting details
110.42(b)(7)(G) – Reading/comprehension
…summarize texts
110.42(b)(7)(J) – Reading/comprehension
…read silently with comprehension for a sustained period of time
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Interdisciplinary Correlations:
Mathematical Models with Applications
111.36(c)(1)(A) – Knowledge and Skills
…compare and analyze various methods for solving a real-life problem.
111.36(c)(1)(B) – Knowledge and Skills
…use multiple approaches (algebraic, graphical, and geometric methods) to solve problems from a variety of disciplines
111.36(c)(1)(C) – Knowledge and Skills
…select a method to solve a problem, defend the method, and justify the reasonableness of the results
111.36(c)(6)(A) – Knowledge and Skills
…analyze methods of payment available in retail purchases and compare relative advantages and disadvantages of each option.
111.36(c)(7)(A) – Knowledge and Skills
…analyze types of savings options involving simple and compound interest and compare relative advantages of these options.
Accommodations for Learning Differences:
It is important that lessons accommodate the needs of every learner. These lessons may be modified to accommodate your students with learning differences by referring to the files found on the Special Populations page of this website.
References:
1. Introduction to Business, Fifth Edition, Brown Clow, Glencoe McGraw-Hill
2. Intro to Business, Dlabay Burrow Klendl, South-Western Cengage Learning
3. Online Resources: globaledge.msu.edu, worldnetdaily.com/news/article
Instructional Aids:
1. “Forms of Business Ownership” PowerPoint Presentation
2. Deck of Businesses Assignment #1
3. Deck of Businesses Assignment #1 Rubric
4. Forms of Business Ownership Poster Assignment #2
5. Forms of Business Ownership Poster Assignment #2 Rubric
6. Other Forms of Business Ownership PowerPoint: Assignment #3
7. Other Forms of Business Ownership PowerPoint: Assignment #3 Rubric
8. Internet
Materials Needed:
1. Construction paper
2. Scissors and glue
3. Poster board
4. Newspapers
Equipment Needed:
1. Computers for students to complete projects
2. Projector for PPT
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Learner Preparation:
1. Statistics indicate that students will change jobs 10-14 times before they turn age
38. Ask students to list rapidly growing employment opportunities and jobs that are declining in numbers.
2. Ask students to list five businesses in their community. Then ask students to categorize the businesses as producers, intermediaries, or service businesses.
Lesson Plan
Introduction (LSI Quadrant I):
1. Ask students to propose a new sole proprietorship for their community. What are the risks and benefits associated with opening this form of business?
2. Divide the class into small groups of two or three students. Each group has 10 minutes to determine a strategy for the government to encourage the start-up of more sole proprietorships.
3. Ask students to describe characteristics of a successful entrepreneur in the community. Then explain the risks involved with starting a business (more than
50% of businesses fail within one year).
Important Terms for this Lesson:
•
Partnership – a business owned by two or more persons who share the risks and rewards
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Stock – shares of ownership in a corporation
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Intermediary – business that acts as a go-between in moving goods from producers to consumers, such as wholesalers, retailers, and distributors
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Sole proprietorship-a business owned by only one person
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Corporation-a business treated by law as separate from its owners
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Processors-businesses that change raw goods into more finished products
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Manufacturers-businesses that make finished products out of raw processed goods
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Unlimited liability-full legal and financial responsibility for a business
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Limited liability-financial responsibility of business owners only for what they invested in a business
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Franchise-a contractual agreement to use the name and sell the goods or services of an existing company
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Nonprofit organization-a business whose main purpose is to provide a service rather than to make a profit
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Cooperative-an organization of businesses owned and operated by the members, who pool their resources and share the benefits
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Producer-a business that gathers raw products in their natural state
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Wholesaler-a type of business that buys goods in large amounts and resells them to other businesses in smaller lots
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Retailer-a business that sells goods or services directly to the public
Outline
Outline (LSI Quadrant II):
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Instructors can use the PowerPoint presentation, slides, handouts, current events, the
Internet, and note pages in conjunction with the following outline.
MI Outline Notes to Instructor
I. Business in the U.S. Economy
A. Changing Status of Employment in the
U.S.
1. New jobs evolve and old jobs disappear
2. Aging labor pool
3. Minority groups make up a larger percentage of the workforce
B. Roles of Businesses in the U.S. Economy
1. Employment for millions of people
2. Compensate owners and investors
Explain the changing workforce for an aging population.
Also describe the needs for an aging population.
. 3. Pay taxes to federal, state, and local governments
4. Make and distribute products and services needed by consumers, government, and businesses
C. Three Major Categories of Businesses
1. Producers-create products and services used by individuals and other businesses
2. Intermediaries-sell goods and services
3. Service businesses-carries out activities that are consumed by its customers
Ask students to give examples of producers. Possible answers may include farmers and manufacturers are examples of producers.
Ask students to give examples of intermediaries in the mall.
Then ask students to give examples of service businesses that they use.
Examples of service businesses might include Internet service providers, doctors, dentists, hair stylists, and lawn care specialists.
II. Forms of Business Ownership
A. Sole Proprietorships-owned and run by one person
1. For individuals who want to work and make decisions independently
2. Little government regulation
Ask students to list a business that they would feel comfortable operating as a sole proprietor. Then ask
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3. Great risk for the owner
B. Partnership-owned and controlled by two or more people
1. People who share an idea for a business
2. People who want to cooperate in managing and investing, and want to share the risks and rewards of the business
C. Corporation-separate legal entity owned by one or more shareholders and managed by a board of directors
1. More difficult to form
2. Subject to more regulations
3. Limited liability for investors
III. Other Forms of Ownership
A. Limited Liability Partnership
B. Joint Venture
C. S-Corporation
D. Limited Liability Company
E. Nonprofit Corporation
F. Cooperative
G. Franchise students to explain why they are qualified.
Ask students to list the risks involved with partnerships.
Explain how partners have unlimited liability in the partnership.
Ask students to list three corporations that they think are good investment choices. Then have the students look up the stock performance for their choices.
Describe how a limited liability partnership would allow you to begin a partnership with a noted expert who is only liable for the amount they invested in the company.
Explain how a joint venture ends when a project is completed.
Ask students to give examples of franchises. Fast food restaurants, hotels, and other businesses operate as franchises.
Copy and paste Multiple Intelligences Graphic in appropriate place in left column.
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Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
Intra- personal
Inter- personal
Naturalist Existentialist
Application
Guided Practice (LSI Quadrant III): Two friends want to open a clothing consignment store. Individuals bring clothing to the consignment store and if the clothes sell, the consignment shop earns 60% and the customer receives 40% of the sale. What are the advantages of this type of business over other retail stores? Explain the advantages and disadvantages of operating this business as a sole proprietorship and a partnership.
Independent Practice (LSI Quadrant III):
1. Deck of Businesses Assignment: Ask the class to design a deck of 54 cards.
Eighteen of the cards represent service businesses, 18 cards should represent producers, and 18 cards represent intermediary businesses. The deck of cards will be used to review service businesses, producers, and intermediary businesses. This assignment will be evaluated for following directions accurately.
2. Forms of Business Ownership Poster Assignment: Ask students to find pictures of businesses that are sole proprietorships, partnerships, and corporations. Then students will design a poster divided into three sections representing the three forms of ownership. Each section will include pictures and bulleted items describing the forms of ownership. The poster will be evaluated using the assigned rubric.
3.
Other Forms of Business Ownership PowerPoint Assignment: Ask students to design a PowerPoint presentation that defines a limited liability partnership, joint venture, S-corporation, limited liability company, nonprofit corporation, cooperative, and a franchise. Each form of business ownership must be carefully defined. The PowerPoint presentation will be evaluated using the assigned rubric.
Summary
Review (LSI Quadrants I and IV):
Q: How is the U.S. population changing?
A: The U.S. population is becoming older. The number of Asian, Hispanic, and African-
American workers will grow. The number of contingent workers will grow.
Q: What are six business activities completed by all businesses?
A: Six business activities include generating ideas, raising capital, employing and training personnel, buying goods and services, marketing goods and services, and maintaining business records.
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Q: What is one advantage of investing in a corporation?
A: One advantage is limited liability.
Q: What is the size of the workforce for the greatest number of businesses in the U.S?
A: The greatest number of businesses in the U.S. employ less than 20 people.
Q: Which form of business ownership is the most complex and difficult to form?
A: The most complex form of business ownership is the corporation.
Q: What are disadvantages of the partnership form of business?
A: Disadvantages include unlimited liability, uncertain life, and disputes among the partners.
FORMING A FRANCHISE
Students will explain the process for operating a specific franchise. Information will be presented in a PowerPoint presentation. The presentation must give concrete steps to apply for and operate the franchise. A rubric will be used to evaluate this project.
Evaluation
Informal Assessment (LSI Quadrant III):
1. Instructor will observe students during Independent Practice.
2. Instructor will assist students as needed.
Formal Assessment (LSI Quadrant III, IV):
Assigned Rubrics will be used to assess assignments 2 and 3 for Independent Practice
(LSI Quadrant III). A rubric will also be used to evaluate the “Forming Franchise” assignment.
Extension/Enrichment (LSI Quadrant IV):
1. Students will select three sets of competing corporations and track/record stock prices for three weeks to determine which corporations have a better performance record.
2. Name That Corporation : Students will compose a one-page story about a corporation, without referring to the name of the corporation. The teacher will read the stories and students will write down which corporations they think are being described.
3. Students select a popular brand of clothing or athletic apparel. Students conduct research to determine how and where the clothing is produced. Students must explain why the clothing is manufactured in the selected part of the world.
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Deck of Businesses Assignment #1: Design a deck of 54 cards. Eighteen of the cards represent service businesses, 18 cards should represent producers, and 18 card represent intermediary businesses. The deck of cards will be used to review service businesses, producers, and intermediary businesses. This assignment will using the assigned rubric.
Forms of Business Ownership Poster Assignment #2: Find pictures of businesses that are sole proprietorships, partnerships, and corporations. Then design a poster divided into three sections representing the three forms of ownership. Each section must include pictures and bulleted items describing the forms of ownership. The poster will be evaluated using the assigned rubric.
Other Forms of Business Ownership PowerPoint Assignment #3: Design a
PowerPoint presentation that defines a limited liability partnership, joint venture, Scorporation, limited liability company, nonprofit corporation, cooperative, and a franchise. Each form of business ownership must be carefully defined. The
PowerPoint presentation will be evaluated using the assigned rubric.
Summary Assignment
FORMING A FRANCHISE
Explain the process for operating a specific franchise. Information must be presented in a PowerPoint presentation. The presentation must give concrete steps to apply for and operate the franchise. A rubric will be used to evaluate this project.
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Forms of Business Ownership
Deck of Businesses Assignment #1 Rubric
Student Name: _____________________________________________________
CATEGORY 20 15 10
Knowledge
Gained
5 or less
All students in group could easily and correctly state several facts about the topic used for the game without looking at the game.
All students in the group could easily and correctly state 1-
Most students in the group could easily and correctly state 1-
2 facts about the topic used for the
2 facts about the topic used for the game without looking game without at the game. looking at the game.
Several students in the group could NOT correctly state facts about the topic used for the game without looking at the game.
Accuracy of
Content
All information cards made for the game are correct.
All but one of the information cards made for the game are correct.
All but two of the information cards made for the game are correct.
Several information cards made for the game are not accurate.
Attractiveness Contrasting colors and at least 3 original graphics were used to give the cards and gameboard visual appeal.
Contrasting colors and at least 1 original graphic were used to give the cards and gameboard visual appeal.
Contrasting colors and "borrowed" graphics were used to give the cards and gameboard visual appeal.
Little or no color or fewer than 3 graphics were included.
Creativity
Cooperative work
The group put a lot of thought into making the game interesting and fun to play as shown by creative questions, game pieces and/or game board.
The group put some thought into making the game interesting and fun to play by using textures, fancy writing, and/or interesting characters.
The group tried to make the game interesting and fun,
Little thought was put into making the game interesting or but some of the things made it harder to understand/enjoy the game. fun.
The group worked well together with all members contributing significant amounts of quality work.
The group generally worked well together with all members contributing some quality work.
The group worked fairly well together with all members contributing some work.
The group often did not work well together and the game appeared to be the work of only
1-2 students in the group.
Total Score _______
Maximum 100 Points
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Forms of Business Ownership
Forms of Business Ownership Poster Assignment #2
Student Name: _____________________________________________________
CATEGORY 20 15 10 5 or Less
Graphics -Clarity Graphics are all in focus and the content easily viewed and identified from 6 ft. away.
Most graphics are in focus and the content easily viewed and identified from 6 ft. away.
Most graphics are in focus and the content is easily viewed and identified from 4 ft. away.
Many graphics are not clear or are too small.
Knowledge
Gained
Content -
Accuracy
Student can accurately answer all questions related to facts in the poster and processes used to create the poster.
Student can accurately answer most questions related to facts in the poster and processes used to create the poster.
At least 7 accurate facts are displayed on the poster.
5-6 accurate facts are displayed on the poster.
Student can accurately answer about 75% of questions related to facts in the poster and processes used to create the poster.
3-4 accurate facts are displayed on the poster.
Student appears to have insufficient knowledge about the facts or processes used in the poster.
Less than 3 accurate facts are displayed on the poster.
Attractiveness The poster is exceptionally attractive in terms of design, layout, and neatness.
The poster is attractive in terms of design, layout and neatness.
The poster is acceptably attractive though it may be a bit messy.
The poster is distractingly messy or very poorly designed. It is not attractive.
Graphics -
Originality
Several of the graphics used on the poster reflect a exceptional degree of student creativity in their creation and/or display.
One or two of the graphics used on the poster reflect student creativity in their creation and/or display.
The graphics are made by the student, but are based on the designs or ideas of others.
Total Score _______
Maximum 100 Points
No graphics made by the student are included.
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Forms of Business Ownership
Other Forms of Business Ownership PowerPoint Assignment #3
Student Name: _____________________________________________________
CATEGORY 20 15 10
Presentation Well-rehearsed with smooth delivery that holds audience attention.
Rehearsed with fairly smooth delivery that holds audience attention most of the time.
5 or Less
Delivery not smooth, but able to maintain interest of the audience most of the time.
Delivery not smooth and audience attention often lost.
Attractiveness Makes excellent use of font, color, graphics, effects, etc. to enhance the presentation.
Makes good use of font, color, graphics, effects, etc. to enhance to presentation.
Makes use of font, color, graphics, effects, etc. but
Use of font, color, graphics, effects etc. but these often occasionally these detract from the presentation content. distract from the presentaion content.
Content Covers topic indepth with details and examples.
Subject knowledge is excellent.
Includes essential knowledge about the topic. Subject knowledge appears to be good.
Includes essential information about the topic but there are 1-
OR there are several factual errors.
2 factual errors.
Content is minimal
Organization
Originality
Content is well organized using headings or bulleted lists to group related material.
Uses headings or bulleted lists to organize, but the overall organization of topics appears flawed.
Content is logically organized for the most part.
There was no clear or logical organizational structure, just lots of facts.
Product shows a large amount of original thought.
Ideas are creative and inventive.
Product shows some original thought. Work shows new ideas and insights.
Uses other people's ideas (giving them credit), but there is little evidence of original thinking.
Uses other people's ideas, but does not give them credit.
Total Score _______
Maximum 100 Points
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Forms of Business Ownership
Forming a Franchise Summary Assignment
CATEGORY 20
Presentation
15 10 5 or Less
Well-rehearsed with smooth delivery that holds audience attention.
Rehearsed with fairly Delivery not smooth, smooth delivery that holds audience attention most of the time. but able to maintain interest of the audience most of the time.
Delivery not smooth and audience attention often lost.
Content Covers topic indepth with details and examples.
Includes essential knowledge about the topic. Subject
Subject knowledge is knowledge appears excellent. to be good.
Includes essential information about the topic but there are 1-2 factual errors.
Content is minimal
OR there are several factual errors.
Requirements All requirements are met and exceeded.
All requirements are met.
One requirement was not completely met.
More than one requirement was not completely met.
Oral
Presentation
Originality
Interesting, wellrehearsed with smooth delivery that holds audience attention.
Relatively interesting,
Delivery not smooth, but able to hold rehearsed with a fairly smooth delivery audience attention most of the time. that usually holds audience attention.
Delivery not smooth and audience attention lost.
Product shows a large amount of original thought.
Ideas are creative and inventive.
Product shows some original thought.
Work shows new ideas and insights.
Uses other people's ideas (giving them credit), but there is little evidence of original thinking.
Uses other people's ideas, but does not give them credit
Total Score _______
Maximum 100 Points
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