Activator – Chapter 8
Write down three occupations that you’re considering for your
future. Categorize each of your choices based on who your
employer might be for each job.
Job
1.
2.
3.
Employer
Chapter 8 - Business Organizations
 Business organization (firm) –establishment formed to carry
on a commercial enterprise.
 3 types - Sole proprietorship, partnership, corporation
 Each has different levels of liability (responsibility)
 Liability – legal obligation to pay debts incurred by the
business
 Each are engaged in bringing goods, services, or both to
consumers in the market
Sole Proprietor
 Sole proprietorship – a business owned and managed by a single individual
 Most common type of business organization
 75% of all businesses are sole proprietorships in the U.S.
http://www.arete-basketball.com/
Partnership
 Partnership – a business organization owned by two or more persons who agree on a specific
division of responsibilities and profits
 Account for about 5 % of all businesses
 General Partnership – partners share equal liability and responsibility
 Doctor’s lawyers, accountants, small family businesses
 Limited Liability Partnership – all partners are limited from personal liability, in the case of
another partners mistakes.
 Legal buffer from personal liability
 Articles of Partnership – outline the agreements between partners.
Corporation
 Corporation – is a separate legal entity, or legal being, owned by individual
stockholders, each of whom faces no liability for the firm’s debt
 Stock – a certificate of ownership in a corporation
 Partial owner , i.e. 1000 shares, purchase 1, 1/1000th owner of the
company
 Corporation has a separate legal identity, an entity separate from its
owners
 Account for 20% of all businesses, but 90% of all products sold
Corporation
 Closely held – privately held corporations, that do not trade stock
on the public exchange
 Publicly held – sells stock on the market to investors in order to
grow the business
Mergers
 Merger – combine with another company to become one entity
 Horizontal merger – firms in the same market with a similar good or service
merge
 Vertical merger –firms involved in producing different goods or services merge
 Conglomerates – business mergers with more three or more businesses
 Multinationals – large corporation that produces and sells its goods and services
throughout the world
Other Organizations
 Business Franchise – semi-independent business that pays fees and royalties to a parent
company
 Business is granted right to sell using the name, product and brand of the company
 Zaxbys, McDonalds, Subway, etc.
 Cooperative – Co-0ps, business organization owned and operated by a group of individuals for
their shared benefit
Other Organizations
 Nonprofit Organizations – business that gears towards benefiting society (philanthropy)
 Labor Unions – organized group of workers whose aim is to improve working conditions,
hours, wages and fringe benefits for its members.
Landinguin/Henning
 Jasmine Gerald
 Nisha Hankerson
 Fabiana Johnson
 Dekel Joseph
 Taneka Murphy
 Tabahri Newberry
 Shaquail Bell
 Rebecca Bullard
 Greg Burchett
 Darren Cowart
 Michael Diggs
 Shaquail Ellis
 Matt Forrest
 Minnie Gallarza
 Jordan Armstrong
Binder Check – Due Tuesday 11-1
1. Reflection Questions Day 2
2. Essential Questions (2)
3. Daily Tens (7)
4. Video Questions – Browser
5.
6.
7.
8.
9.
Wars/Google
Ch. 7 +8 Study Guide
Ch. 7 +8 Crossword Puzzle
Ch. 7+8 VIS Terms
Chapter 7/8 - Notes
Test Corrections-Standards
Sheet
Study Guide Chapter 7 + 8
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Perfect/Pure competition
Many buyers and sellers, identical products, buyers + sellers are well
informed, no barrier to entry.
Barrier to entry
Monopoly
Natural
Prices are not competitive, dictated by monopolist.
Patent
Government
License
Price discrimination
Market power
Monopolistic
Many firms, product differentiation, low barrier to entry, little control
over price
Running shoes, pens, cars, etc., gas station near highway, publix,
designer t-shirt
Study Guide Chapter 7 + 8
30. Partnership
15. Oligopoly
16. Collusion, price fixing
17. Antitrust
18. Microsoft
19. Business organization
20. Sole proprietor
21. Partnership
22. General
23. Limited
24. Limited liability
25. Articles of partnership
26. Corporation
27. Sole proprietorship
28. Corporation
29. Stock/share
31. Sole proprietorship
32. Closely
33. Publicly
34. Partnership
35. Corporation
36. Multinational
37. Horizontal
38. Vertical
39. Conglomerate
40. Franchise
41. Cooperative
42. Consumer
43. Service
44. Producer
Extra Credit
List the 4 market structures in order
from least competitive to most
competitive.
2. What does it mean to have market
power?
3. Which of the four forms of nonprice
competition (physical characteristics,
location, service level, image/status),
would reflect the following?
a. A fast food restaurant near the
beach
b. A new shape for a running shoe
c. Publix, “Where shopping is a
pleasure”
d. Express brand clothing vs. Target
1.
Essential Question #1
1.
How do the 3 business organizations differ?
one person

A sole proprietorship is owned and operated by ___________________
2 or more people

Partnerships are owned by _______________
shareholders

Corporations are owned by ___________________
Essential Question #2
2.




What are the characteristics of each market structure?
identical
many
Perfect competition, products are ___________________,
_____________
firms,
informed
no
consumers are _____________,
________________
barriers to entry.
Monopolistic competition, products are __________________,
but not
similar
identical
many
low
_________________,
__________________
firms, __________________
barriers to
entry.
Identical
similar
Oligopoly, products are ________________
or _____________,
and are controlled
a few
high
by ___________
firms. ____________
barriers to entry
one
one
Monopoly, ___________
product, controlled by ___________
firm,
complete barriers to entry
______________