Winston-Salem/Forsyth County Schools



Course8721Principles of Business and FinanceUnit APrinciples of BusinessEssential Standard2.00Understand the nature of business.Objective2.01Understand the types of business ownership.EssentialQuestionsWhat are the main types of business ownership?What are the characteristics of the main types of business ownership?Answer the EQs.Do the brochure plete the worksheets below.Name_________________________ Class _________________ Date _________Types of Business Ownership Brochure Activity Directions: Use available material and supplies to make a brochure of the types of business ownership. Brochure TemplateSpecial Types of OwnershipDescribe the types of specialized partnerships and corporations, including examplesDescribe cooperativeDescribe franchise, including examples2 Examples- texts, symbols, or pictures of a franchiseNameDatePeriodClassTitleBusiness Quote or PictureCorporation How many owners?Who manages?How is business started?2 Advantages 2 Disadvantages Limited or unlimited liability ExampleHow is ownership terminated?Sources of investment2 Examples-texts, symbols, or picturesPartnershipHow many owners?Kinds of partnersWho manages?How is business started?2 Advantages 2 Disadvantages Limited or unlimited liability ExampleHow is ownership terminated?Sources of investment2 Examples-texts, symbols, or picturesProprietorshipHow many owners? Who manages?How is business started?2 Advantages 2 Disadvantages Limited or unlimited liability ExampleHow is ownership terminated?Sources of investment2 Examples-texts, symbols, or picturesName_________________________ Class _________________ Date _________Types of Business Ownership Key Terms Crossword PuzzleDirections: Fill in the crossword puzzle using the provided definitions. Types of Business Ownership Key Terms Crossword Puzzle ContinuedAcross5. Two or more persons to carry on as co-owners of a business for a profit. 9. Each stock equals one _______ at the shareholder meeting. 10. Type of liability in which you can lose all your assets. 16. Partnership formed by the way two or more people conduct their business (4 words). 17. Entity with the legal authority to act as a single person. 18. Partner has an active role, but unknown existence. 19. Grants permission to sells its products and services as a business. Down1. Business owned by one person (two words). 2. Partnership formed after they agree to conditions in a contract (two words). 3. Type of corporation that benefits the public and receives a tax break. 4. Abbreviation for a partnership with limited liability. 6. Partner has no role, but is known to public. 7. Type of taxation on a corporation.8. Type of liability in which you only lose your initial investment in the company. 11. Partner plays no role and is not known to public. 12. __________ of incorporation. 13. Partner has an active role, unlimited liability. 14. Formed by a group to gain bargaining power. 15. __________venture is a special project for a limited time. Name_________________________ Class _________________ Date _________Best Form of Business Activity Directions: Read the scenarios and provide responses in your own words to the questions in the spaces provided.Scenario 1Mary makes jewelry for her own business named The Design For You. She needs help in completing orders to make necklace and earring sets in a timely manner. Mary prefers working alone at her own pace. Mary’s cousin named Greg has expressed interest in starting a business too. He likes using his hands, designing things, and has access to jewelry making tools too. Should Mary hire Greg to help her make the orders for jewelry or form a partnership with him? __________________________________________________________Compare the advantages and disadvantages of hiring Greg and remaining a sole proprietorship._________________________________________________________________________________________________________________________________________________________________________________________________________Compare the advantages and disadvantage of forming a partnership with Greg._________________________________________________________________________________________________________________________________________________________________________________________________________Scenario 2Teri enjoys assisting other students with their homework. Her neighbor named Francis volunteers in assisting younger students with their homework in an after school program. Teri and Francis talked about forming a partnership and expanding their services.Should Teri and Francis form a partnership? _______________________________Compare the advantages and disadvantages of them forming a partnership.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Scenario 3Jade and John own and operate several ice cream stores. Jade is interested in expanding the business by offering additional services and opening more locations. John reminded Jade that they will need more resources in order to expand. Jade suggested that they offer shares to relatives to finance the expansion. Should Jade and John form a corporation? ________________________________Compare the advantages and disadvantages of them forming a corporation.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Name_________________________ Class _________________ Date _________Sole-Partners-Corporate ActivityDirections: Work as a sole proprietor, partnership, or corporation to provide responses to the scenarios in the space provided. Be prepared to present your findings.Sole Proprietorship ScenarioMary Jones operates her own staffing agency. Mary has about 30 steady companies that request her services to send temporary workers for various jobs. She handles all the financial, advertising, operations, and management issues for the agency. Mary used a gift of $10,000 from her grandmother to start the agency. She would like to expand the agency. She uses all her profit to sustain her personal living arrangements. After seven days of constant rain, Mary realized soon after the rainy days that water is leaking from several places of the roof. She is planning to borrow money to have the roof repaired. Complete the table using information from the scenarioTypeSole ProprietorshipOwner(s)Manager(s)Advantage(s) Disadvantage(s)Source(s) of investmentOther informationConsidering the responses to the above items, what should the business owner do with the business? Why?Name_________________________ Class _________________ Date _________Sole-Partners-Corporate ActivityDirections: Work as a sole proprietor, partners, or corporation to provide responses to the scenarios in the space provided. Be prepared to present your findings.Partnership ScenarioMax and Tim enjoy skiing so much that they are thinking about opening a ski resort. Max recently inherited about 100 acres of land in the mountains. This amount of land will easily accommodate a ski resort. Tim has about $30,000 in his saving account. Tim’s neighbor, Bob, operates a successful business. Both of them have limited knowledge about operating a business. They talk about offering ski slopes, equipment, housing, food, and entertainment at the resort. Max may have to continue working his full-time job as a teacher even once they opened the resort. Tim is ready to quit his job as an attorney right away and start the business. Complete the table using information from the scenarioTypePartnershipOwner(s)Manager(s)Type of partners should be consideredAdvantage(s) Disadvantage(s)Source(s) of investmentOther informationConsidering the responses to the above items, what should they do with their resources and desire to open the ski resort? Why?Name_________________________ Class _________________ Date _________Sole-Partners-Corporate ActivityDirections: Work as a sole proprietor, partners, or corporation to provide responses to the scenarios in the space provided. Be prepared to present your findings.Corporation ScenarioA company wants to expand to several other cities. The board of directors proposed the option of selling 300 more shares to obtain the funds. The company stock value has decreased about 1% over the past year. The corporation has earned an average profit of over $40,000 for the past three years. Complete the table using information from the scenarioTypeCorporationOwner(s)Manager(s)Advantage(s) Disadvantage(s)Source(s) of investmentHow could expansion help the corporation with the decreased stock value?Considering the responses to the above items, should the company pursue its expansion plans? Why?Name_________________________ Class _________________ Date _________Types of Partners ActivityDirections: Decide which type of partner would be the best option to use in each scenario using the table below to make your decisions. Be prepared to back up your decision. Type of PartnerParticipation in the BusinessRelationship to PublicDegree of LiabilityGeneralActiveKnownUnlimitedDormantNot activeUnknownUnlimitedLimitedNot activeKnownLimitedSecretActiveUnknownUnlimitedSilentNot activeKnownUnlimited1. Juan needs a partner in his office supplies business. He does not want the person to be involved in the business for day-to-day operations so he can make the majority of decisions due to his experience. He would like to be responsible for the liabilities of the company but also credit his partner by letting the public know who it is. What type of partner would be good for Juan’s business? Explain your answer.__________________________________________________________________________________________________________________________________________________________________________________________________________________2. Julie and Myra want to start a partnership making personalized pottery. Both want to be involved in the business, but Julie does not want to be known in the community as a partner. Both do not mind having unlimited liability for the business. What type of partners should each by for their business? Explain your answer._________________________________________________________________________________________________________________________________________________________________________________________________________________3. Kenneth’s landscaping business has been doing well but he needs more working capital to meet the increase in business. He would like to bring in a partner for the extra capital and to share the profits but who would also let him conduct all the business. He would his partner to be added to the name of the business as well. What type of partner should Kenneth have? Explain your answer. __________________________________________________________________________________________________________________________________________________________________________________________________________________4. Russell has been a partner in a barbershop for 10 years. He is not known around town as one of the owners and does not make any management decisions. He knows that he will be held liable for anything that happens at the business. What type of partner is Russell? Explain your answer.__________________________________________________________________________________________________________________________________________________________________________________________________________________ ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download