Lesson Plan
Course Title: Marketing Dynamics
Session Title: Business Ownership, Lesson 2
Performance Objective:
After completing this lesson, the student will be able to list the types of business ownerships,
describe the advantages and disadvantages of each and understand the concept of economic
resources.
Approximate Time:
When taught as written, this lesson should take 5 days to complete.
Specific Objectives:



The student will list the types of business ownerships.
The student will discuss advantages and disadvantages of each type.
The student will explain an economic resource.
TERMS
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









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Sole proprietorship
Partnership
General Partnership
Limited Partnership
Corporation
Stock
Limited Liability
Unlimited Liability
Franchise
Franchisee
Franchisor
Economic resource
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1
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.
130.347 (c)(1)(D)
…describe advantages and disadvantages of various forms of business ownership…
130.347 (c)(1)(E)
…describe the concept of economic resources…
Interdisciplinary Correlations:
English:
110.31 (b)(21)(B)
… organize information gathered from multiple sources to create a variety of graphics and forms
(e.g., notes, learning logs)…
110.31 (b)(22)(B)
…evaluate the relevance of information to the topic and determine the reliability, validity, and
accuracy of sources (including Internet sources) by examining their authority and objectivity…
110.31 (b)(23)(C)
… use graphics and illustrations to help explain concepts where appropriate…
110.31 (b)(23)(D)
… use a variety of evaluative tools (e.g., self-made rubrics, peer reviews, teacher and expert
evaluations) to examine the quality of the research…
Occupational Correlation (O*Net - http://www.onetonline.org/)
General and Operations Manager 11-1021.00
Similar Job Titles: Operations Manager, General Manager, Business Manager
Tasks:

Oversee activities directly related to making products or providing services.

Direct and coordinate activities of businesses or departments concerned with the
production, pricing, sales, or distribution of products.

Review financial statements, sales and activity reports, and other performance data to
measure productivity and goal achievement and to determine areas needing cost
reduction and program improvement.
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
Manage staff, preparing work schedules and assigning specific duties.

Direct and coordinate organization's financial and budget activities to fund operations,
maximize investments, and increase efficiency.

Establish and implement departmental policies, goals, objectives, and procedures,
conferring with board members, organization officials, and staff members as necessary.

Determine staffing requirements, and interview, hire and train new employees, or
oversee those personnel processes.

Plan and direct activities such as sales promotions, coordinating with other department
heads as required.

Determine goods and services to be sold, and set prices and credit terms, based on
forecasts of customer demand.

Locate, select, and procure merchandise for resale, representing management in
purchase negotiations.
(Soft) Skills:
Active Listening, Reading Comprehension, Critical Thinking, Speaking, Coordinating, Active
Learning.
Teacher Preparation:
Teacher will review the terms in the outline, slides and handouts to become familiar with lesson.
Teacher should locate and evaluate various resources and websites before the lesson.
Teacher will have assignments and website information ready to distribute to students.
References:
Marketing Essentials, Schneider Farese, Kimbrell, Woloszyk, Glencoe McGraw-Hill
Instructional Aids:
1. Display for digital presentation, websites for assignments and class discussion
2. Marketing Essentials, Schneider Farese, Kimbrell, Woloszyk, Glencoe McGraw-Hill
3. Major franchise website (e.g. McDonalds, Subway, Quiznos, etc) go to the franchising
section of the website for this lesson.
Materials Needed:
1. Printer paper
2. Assignments and website information ready to distribute to students
(Business Ownership Project) Direction Sheet
2. Poster Board
3. Internet for students to research types of businesses
Equipment Needed:
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1. Computer with digital slideshow program and Internet Access
2. Projector to show internet sites
3. Computers for students to conduct research
Learner Preparation:
An entrepreneur needs to be aware of all of the business options available when starting a
business. This includes the type of business ownership which they may choose. There are
advantages and disadvantages to each and choosing wisely can be the difference between
having a successful business or losing all of your hard earned money.
Ask students which form of business ownership they think is the most prevalent in the United
States today.
Introduction
Introduction (LSI Quadrant I):
SHOW: Show students the franchise section of a major retailer on their website. (e.g.
McDonalds, Subway, Quiznos, etc)
ASK: Ask students if they realized that most of these restaurants were not owned by the parent
company.
SAY: Explain that individuals can purchase a fast food franchise as a way of getting started in
business.
ASK: Ask students how much money they think they will need to purchase a fast food
franchise?
SAY: Explain that some companies require a minimum of $500,000 to purchase a franchise.
But that is just one type of business ownership.
ASK: Ask students if they think selling items on the internet qualifies as a business?
SAY: Explain that an individual can be a sole proprietorship form of business when they buy
and sell items on the internet to make a profit.
ASK: Ask students if they know what other forms of business ownerships there are?
SAY: Explain that many doctors and lawyers are in partnerships and sole proprietorships which
are the most prevalent form of business ownership, but corporations are responsible for
generating the most revenue in the United States.
Copyright © Texas Education Agency, 2012. All rights reserved.
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Outline
Outline (LSI Quadrant II):
Instructors can use the presentation, slides, handouts, and note pages in conjunction with the
following outline.
MI
Outline
Notes to Instructor
I. Types of business ownership
A. Why there are different types of business
ownerships.
B. Business ownership can change as
business grows.
Use slides and current
events as aid.
II. Sole Proprietorships
A. Sole Proprietorship is a business owned and
operated by one person.
a. Most common form of ownership in the
U.S
b. Advantages
i. Easy to start up
ii. Keep all profits
iii. Make all decisions yourself
iv. Less government regulations
c. Disadvantages
i. You have to come up with money to
start and run business.
ii. Unlimited liability (Creditors can take
your personal assets)
iii. You have to manage all aspects of the
business.
iv. Business ends when owner dies
Use slides as aid.
Choosing the type of
business someone
enters into and the
products or services
they are selling can
affect which type of
business ownership
works best. The
success or failure of
the business can be
affected by the type of
business ownership
they choose to use.
The vast majority of
businesses in the U.S.
are sole
proprietorships.
Mostly because of the
ease of startup. Any
business that is just
one person that is not
incorporated is
considered a sole
proprietorship. This
could be someone
selling computers on
the internet or a hot
dog vendor selling on
the streets of
downtown New York,
or plumbers or even
writers.
Copyright © Texas Education Agency, 2012. All rights reserved.
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III. Partnerships
A. Partnership is a legal agreement between two
or more people to be jointly responsible for the
success or failure of a business.
B. Least common form of business ownership
C. Law offices, doctors offices and real estate offices
are common partnerships
D. Advantages
a. Easy to setup
b. More than one source of money
c. Combines skills of all owners
d. Less regulations than corporations
E. Disadvantages
a. Owners may not always agree
b. Actions of one partner are legally
binding on all
c. All partners share debt
d. Business dissolved if one partner dies
e. Unlimited liability between all of the
partners
F. There are two types of partnership
a. General partnership is when each
partner shares in the profits and losses.
Each partner has unlimited liability.
b. Limited partnership is when each
limited partner is liable for debts only up
to the amount of his or her investment.
i. There must at least one general
partner who has unlimited
liability.
ii. Must make public notice that
one or more partners have
limited liability.
Use slides as aid.
IV. Corporations
A. A Corporation is a business that is chartered
by a state and legally operates apart from the
owners as a separate legal entity.
B. Corporations form “boards” who hire directors
and officers to manage the affairs of the
corporation.
A. The corporation’s value is divided into
equal units called shares. Shares are sold
to individual investors through the stock
market.
B. Stockholders actually are the ones who
own the corporation.
C. Advantages
A. Limited liability of company officers and
Use slides as aid.
Corporations are run
by the board of
directors. These
individuals have a
responsibility to the
stockholders to make
wise decisions for the
company so it can be
profitable. The
stockholders each own
a piece of the
company. The
corporation is required
to have a stockholders
Partnerships are still
easy to setup but are
more complicated than
sole proprietorships. It
is the least common
form of business
ownership. Many
doctors’ offices and
law firms are setup as
limited liability
partnerships.
Copyright © Texas Education Agency, 2012. All rights reserved.
6
stockholders.
B. Specialized skill set of managers
C. Additional sources of money
D. People can easily enter or leave the
business
V. Franchise
A. A franchise is a legal agreement to open a
business in the name of a recognized
company.
a. Franchisee is the person who is
purchasing the franchise.
b. Franchisor is the person who is owns
the recognized company.
B. Franchise
a. Advantages
i. Business already well known
ii. Training on how to run
business
iii. Assistance with advertising and
merchandising
iv. Day to day guidance on how to
be successful
b. Disadvantages
i. Must follow franchisor
guidelines
ii. Large amounts of capital to
purchase most franchises
iii. Percentages of profits go back
to franchisor
VI. Business Ownership
A. Economic resources are the things used in
producing goods and services.
a. Factors of production
i. Land
ii. Labor
iii. Capital
iv. Entrepreneurship
b. Business Ownership
B. How a business chooses to use their economic
resources determines how successful they will
be.
meeting once a year
and stockholders can
share their opinions
with the board. Each
stockholder has a vote
in corporate business;
one share of stock
equals one vote that
the stockholder can
cast.
Use slides as aid.
Many chain
restaurants are
franchises such as
hamburger
restaurants, pizza
restaurants and
Mexican restaurants. .
These are great
opportunities for
entrepreneurs who
wish to start a
business but need
additional guidance.
As part of the
franchise agreement
the franchisee is given
all of the resources to
duplicate the
successful business.
These include the
logos, floor plans,
recipes, advertising
and marketing being
done by the parent
company.
Use slides as aid.
All businesses have
the same economic
resources available.
The natural resources
that they use to
produce a product or
services, the people
who are employed by
their business and the
money that they have
Copyright © Texas Education Agency, 2012. All rights reserved.
7
C. Entrepreneurs are those individuals who have
the skills necessary to start businesses and
run them successfully.
D. Entrepreneurs risk their time and money to
start a business.
Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
Intrapersonal
to run their business.
Entrepreneurs are
those people who are
willing to risk their time
and money to run a
business. These
together are known as
the “factors of
production”.
Interpersonal
Naturalist
Existentialist
Application
Guided Practice (LSI Quadrant III):
Ask students to brainstorm the names of businesses in their community. Encourage them to
think of both small and large businesses, these can include local diners, shoe repair stores or
even the ice cream man who roams the neighborhood streets. Once they have a list, have
them try to determine which type of business ownership they think the businesses are using.
Independent Practice (LSI Quadrant III):
Business Ownership Project (team project: 2 students per team)
1.
2.
3.
Each team will use both sides of the poster board dividing each side into two sections (two
on front and two on back)
Students will use each section to create a presentation for each type of ownership. Each
section will have

the name of the ownership,

a picture of that type of business, (can be hand drawn)

a definition of the ownership type,

the advantages and disadvantages and

examples of that ownership type in their community.
Students will present their posters to the class.
This project will be evaluated using the assigned rubric.
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8
Summary
Review (LSI Quadrants I and IV):
Question: What are the different types of business ownerships?
Question: Why would an entrepreneur choose a particular type of ownership?
Question: What are some advantages of a sole proprietorship?
Question: What are some disadvantages of a sole proprietorship?
Question: What are some disadvantages of a partnership?
Question: What type of business is best suited for a limited partnership?
Question: Why would it be wise for some high risk businesses to incorporate?
Question: Who actually owns a corporation?
Question: What is the role of the board of directors of a corporation?
Question: How are the factors of production used?
Question: What is the role of entrepreneurs in the business world?
Evaluation
Informal Assessment (LSI Quadrant III):
Instructor should observe the work ethic of individuals involved in class discussions and the
independent practice activity.
Formal Assessment (LSI Quadrant III, IV):
Students will be evaluated on their “Business Ownership Project” by using the assigned
rubric.
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Extension
Extension/Enrichment (LSI Quadrant IV):
Business Ownership Essay
Student Directions
You are to choose a business that is operating in your community. You will need to research
the business either online or by visiting the business and talking to the business owner. You will
need to determine the type of business ownership that they are using. You will write an essay
with a brief history of the business, how it got started, who owns it and how long they have been
in business. You will discuss the advantages of that type of ownership and the disadvantages
that they may face. You will provide recommendations for the business as to if they should
change their form of business ownership or keep it the same. You need to give specifics as to
why you reached your conclusion.
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Marketing Dynamics
Unit 1 Lesson 2
Student Directions
Independent Practice (LSI Quadrant III):
Business Ownership Project (team project: 2-3 students per team)
1.
2.
3.
Each team will use both sides of the poster board dividing each side into two sections (two
on front and two on back)
Students will use each section to create a presentation for each type of ownership. Each
section will have

the name of the ownership type,

a picture of that type of business (can be hand drawn),

a definition of the ownership type,

the advantages and disadvantages and

examples of that ownership type in their community.
Students will present their posters to the class.
This project will be evaluated using the assigned rubric.
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11
Independent Practice (LSI Quadrant III)
Business Ownership Project Presentation and Collateral Materials
Rubric
20
15
10
CATEGORY
5
Presentation
Well-rehearsed with
smooth delivery that
holds audience
attention.
Rehearsed with fairly
smooth delivery that
holds audience
attention most of the
time.
Delivery not smooth, Delivery not smooth
but able to maintain and audience
interest of the
attention often lost.
audience most of the
time.
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 the
presentation.
Makes use of font,
color, graphics,
effects, etc. but
occasionally these
distract from the
presentation
content.
Use of font, color,
graphics, effects etc.
but these often
distract from the
presentation 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 1-2 factual
errors.
Content is minimal
OR there are several
factual errors.
Organization
Content is well
organized using
headings or bulleted
lists to group related
material.
Uses headings or
bulleted lists 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.
Originality
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 Points Earned _______
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