COMING SOON Extended Bellringer AGENDA Extended Bellringer Review

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COMING SOON • Extended Bellringer

COMING SOON • Extended Bellringer

AGENDA • • • Extended Bellringer Review quiz Finish Money notes (mod 9) Notes:

AGENDA • • • Extended Bellringer Review quiz Finish Money notes (mod 9) Notes: Types of Businesses Activity: Business types

EXTENDED BELLRINGER • Using the six characteristics of money, explain why the following cannot

EXTENDED BELLRINGER • Using the six characteristics of money, explain why the following cannot be used as money: • Seashells • Pebbles • Animal furs • What does it mean when money functions as a “unit of account” • What does it mean when money functions as a “store of value” • What does it mean when money functions as a “Means of exchange”

OBJECTIVES • Students will be able to distinguish between the different business types we

OBJECTIVES • Students will be able to distinguish between the different business types we find in the U. S. by categorizing various local businesses

BUSINESS TYPES 4 KINDS

BUSINESS TYPES 4 KINDS

BUSINESS TYPES • • Sole Proprietorships Partnerships Corporations Franchises

BUSINESS TYPES • • Sole Proprietorships Partnerships Corporations Franchises

TWO SECTORS The economy can be divided into two sectors: • The Private Sector

TWO SECTORS The economy can be divided into two sectors: • The Private Sector • Private individuals and firms that are owned by private individuals • Firms in the private sector include: • Sole Proprietors • Partnerships • The Public Sector (Government, publicly owned)

SOLE PROPRIETORSHIPS • 75% of all businesses in the U. S. • Examples in

SOLE PROPRIETORSHIPS • 75% of all businesses in the U. S. • Examples in Windsor? • Almost ½ will fail in the first year. • 4 every minute • One person creates, Invests, owns, and operates

SOLE PROPRIETORSHIP ADVANTAGE Owner is close to customer Receives all profits One point of

SOLE PROPRIETORSHIP ADVANTAGE Owner is close to customer Receives all profits One point of view DISADVANTAGE Owner assumes all risks Limited operation financial capital

PARTNERSHIPS • 7% of all businesses are this • 2 or more people own

PARTNERSHIPS • 7% of all businesses are this • 2 or more people own and operate a business • They generate 5% of all sales and about 10% of all income. • Examples: • Lawyers • Doctors

2 TYPES OF PARTNERS • General Partners – Share operating responsibilities. • Limited Partners

2 TYPES OF PARTNERS • General Partners – Share operating responsibilities. • Limited Partners – one or more partners does NOT run the business yet shares profits.

PARTNERSHIP ADVANTAGE DISADVANTAGE More Financial Capital Risks are shared More management ideas Profits must

PARTNERSHIP ADVANTAGE DISADVANTAGE More Financial Capital Risks are shared More management ideas Profits must be shared Unlimited liability for owners Dissolves if one partner leaves

CORPORATIONS • • 20% of all businesses Has thousands or even millions of owners

CORPORATIONS • • 20% of all businesses Has thousands or even millions of owners (stock) Sells about 90% of all products. They generate about 70% of net income generated in the nation. • Board of Directors (elected representatives) set general policy • The Board hires a CEO who assembles management staff and conducts daily operations

CORPORATIONS ADVANTAGE DISADVANTAGE Lots of $ through sales of stock Losses limited Increased number

CORPORATIONS ADVANTAGE DISADVANTAGE Lots of $ through sales of stock Losses limited Increased number of managers Can transfer ownership Larger growth possibilities Risks shared State and federally regulated Subject to corporate taxes Management removed from customers and workers

2 KINDS OF CORPORATIONS • Closed Corporation – ownership shares are limited and privately

2 KINDS OF CORPORATIONS • Closed Corporation – ownership shares are limited and privately held within the corporation • Public Corporation – Stocks are sold to the public through a stock market.

CONGLOMERATES When one firm buys another firm of an unrelated good or service. Philip

CONGLOMERATES When one firm buys another firm of an unrelated good or service. Philip Morris owns: General Foods, Kraft & Miller Brewing.

FRANCHISES • Fastest growing business type in the world today. • Owners are licensed

FRANCHISES • Fastest growing business type in the world today. • Owners are licensed to conduct business under another persons name. • You “buy” an existing well-known national/regional business and operate it as your own • What are the 10 top U. S. Franchises?

TOP 10 FRANCHISES • 10 AM/PM Mini Mart • 9 Serve Pro • 8

TOP 10 FRANCHISES • 10 AM/PM Mini Mart • 9 Serve Pro • 8 Jani-King • 7 Dunkin Donuts • 6 H&R BLock • 5 Super Cuts • 4 Hampton Inn • 3 7 -Eleven • 2 Mc. Donalds • 1 Subway

FRANCHISES ADVANTAGES DISADVANTAGES Brand name already known. Equipment is part of the purchase The

FRANCHISES ADVANTAGES DISADVANTAGES Brand name already known. Equipment is part of the purchase The “Winning formula” is part of the price. Must do things the franchisers way. Owner assumes all risks. No other products can be offered except the franchisers.

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?

WHAT TYPE OF BUSINESS IS THIS?