Business Organizations

1. Business Organizations Different Forms of Business

2. Learning Target • I can explain the different types of business organizations. • I can list pros and cons for each.

3. Focus Questions • How would you describe the businesses that you most often visit? • Local Business? National Chain? • Who is the Owner(s) of the Business?

4. Business Organization • A business organization is the ownership structure of a company or firm • Can you name some types of business organizations?

5. Sole Proprietorships • A sole proprietorship is a business owned and managed by a single individual • The single owner earns all profits and responsible for all debts. • Sole proprietorships are the most common form of business organization • Yet they generate only about 4 percent of all United States sales • Examples in Milwaukie?

6. Partnerships 3 Categories of Partnerships • General Partnership • In a general partnership, partners share equally in both responsibility and liability • Limited Partnership • In a limited partnership, only one partner is required to be a general partner, or to have unlimited personal liability for the firm • Limited Liability Partnership • A newer type of partnership is the limited liability partnership. In this form, all partners are limited partners

7. Franchises • A business franchise is a semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area

8. Corporations • A corporation is a legal entity, or being, owned by individual stockholders • Stocks, or shares, represent a stockholder’s portion of ownership of a corporation • A corporation which issues stock to a limited a number of people is known as a closely held corporation • A publicly held corporation, buys and sells its stock on the open market

9. Corporate Mergers • Horizontal Mergers • The combining of two or more firms in the same market with the same good or service • The Government may try to block the merger to prevent monopolies • Vertical Mergers • Two or more firms in involved in different stages of production of a good or service

10. Corporate Mergers • Conglomerates • a business combination merging more than three companies that produce unrelated products or services.

11. Multinationals • Produce and sell goods in more than one country • Obey laws and pay taxes in the countries where they operate

12. Cooperatives • A cooperative is a business organization owned and operated by a group of individuals for their shared benefit • Consumer Cooperatives • Retail outlets owned and operated by consumers • Sell their goods to their members at reduced prices • Service Cooperatives • Provide services, rather than goods (credit unions) • Producer Cooperatives • Agricultural marketing cooperatives that help members sell their products

13. Non-Profit Organizations • Institutions that function like business organizations, but do not operate for profits are nonprofit organizations • Public Schools, Red Cross, Hospitals • Professional, business and trade Organizations • Labor Unions