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Unit 1 Business in a Changing World

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Evaluate the role of different types of business and the ... The owner has complete responsibility for all ... Belks, JCPenny's. Franchises ... – PowerPoint PPT presentation

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Title: Unit 1 Business in a Changing World


1
Unit 1Business in a Changing World
Objective 1.3 Evaluate the role of different ty
pes of business and the various forms of business
ownership in the United States
2
Types of Business Ownerships
  • Sole Proprietorships
  • Partnerships
  • Corporations
  • Franchise
  • Cooperative
  • Non-Profit Corporation

3
Sole Proprietorship
  • A business owned by one person
  • Most are small firms
  • The owner has complete responsibility for all
    business decisions
  • In most cases the owner works in the firm.

4
Examples of a Sole Proprietorship
  • Jewelry Stores
  • Restaurants
  • Gas Stations
  • Hair-Styling Salons

5
Partnerships
  • A business owned and managed by a small group,
    often no more that 2 or 3 people
  • Partnerships are formed by written agreement
  • Profit and Losses are shared by the partners.
    They also assume unlimited liability for the
    debts of their business.

6
Examples of Partnerships
  • Ben Jerrys
  • My Three Sons Moving Company
  • Law Firms
  • Some Doctors Offices

7
Corporation
  • A business owned by a number of people and
    operated under written permission from the state
    in which it is located.
  • The state grants a written permission called a
    certificate of incorporation.
  • The corporation acts as a single individual on
    behalf of its owners.

8
Corporations Continued
  • People can be come part owner of a corporation by
    buying shares of stock.
  • When shares of stock are purchased the buyer is
    referred to as a Shareholder or Stockholder.
  • Many corporations have very few owners, but most
    corporations have many owners.

9
Corporations Continued
  • Large Corporations have millions of owners
  • - For example IBM, Microsoft, Texaco and
    GM
  • Corporations are responsible for most Mining,
    Manufacturing and Transporting of Goods.
  • - For example DHL, UPS, Weyerhaeuser
  • Most Super Stores and Department Stores are
    corporations.
  • - Wal-Mart, Target, Belks, JCPennys

10
Franchises
  • A Franchise is a written contract granting
    permission to sell someone elses product or
    service in a prescribed manner, for a certain
    period of time.
  • Franchises can be operated as a proprietorship,
    partnership or corporation.

11
Franchises Continued
  • A Franchisee is a person or group of people who
    receives the franchise from the parent company to
    sell it product or service.
  • - For Example McDonalds, Subway, Wendys
  • A Franchisor is when the parent company retains
    ownership of the business but allows additional
    chains to be opened.
  • - For Example Best Buy, Wal-Mart, Sears

12
Franchise Agreement
  • The business must be ran a certain way.
  • The name, product, design and color must remain
    the same.
  • The prices, products, services and uniforms are
    determined by the parent company.
  • The Franchisor agrees to the Franchisee get their
    business started.
  • The Franchisor receives a percentage of all sales
    made by the Franchisee.

13
Cooperatives
  • Is owned by the members it serves and is managed
    in their interest.
  • Formations of Cooperatives must be approved by
    the state it is located in.
  • Two Main Types are
  • - Consumer Cooperatives
  • - Producers Cooperative

14
Consumer Cooperatives
  • Is an organization of consumers who buy goods
    and services more cheaply together than each
    person could individually.

15
Producers Cooperative
  • A Farmers Organization that markets products
    such as fruits, vegetables, milk and grain.

16
Non-Profit Corporations
  • Operate to provide a service, but not for
    profit.
  • Most operate under the Corporate Organizational
    Formation.
  • - Examples American Red Cross, Boy Scouts of
    America, Future Business Leaders of America

17
Objective 1.3 - Review
18
Review
  • What are the 4 major types of Business
    Ownerships?
  • How shares of stock does it take to own a part of
    a corporation?
  • A shareholder is also known as a _________.

19
Review Continued
  • What is the easiest type of business to start?
  • What is the most difficult type of business to
    start?
  • What is the difference between a Franchise, a
    Franchisee and a Franchisor?
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