Course / 6200/6600 Principles of Business and Finance / Unit A / Principles of Business
Essential Standard / 2.00 / B2 / 24% / Understand the nature of business.
Objective / 2.01 / B2 / 5% / Understand the types of business ownership.
Essential
Questions /
  • What are the types of business ownership?
  • What are the characteristics of the different types of business ownership?

Principles of Business and Finance

6200/6600

Essential Standard#
Objective # / Unit Titles/Essential Standards and Objective Statement / Local Use / Course
Weight
Unit A / Principles of Business
Essential Standard 2.00 / Understand the nature of business. / 24%
PBF2.01 / Understand the types of business ownership. / 5%
PBF2.02 / Understand leadership and management. / 5%
PBF2.03 / Understand production and operations. / 5%
PBF2.04 / Understand applications and issues of technology. / 4%
PBF2.05 / Understand responsible actions of conducting business / 5%

Essential Standard 2.00 will help students understand the nature of business that will cover the types of business ownership, leadership and management, the production and operations, applications and issues of technology, and lastly responsible actions of conducting business. In objective 2.01 students will understand the characteristics of the types of businesses. In objective 2.02 students will learn how management functions, levels, and styles are classified. In addition students will learn about the classification of leadership styles and activities of human resources management. In objective 2.03 students will learn about the types of business production, difference among manufacturing procedures, the classification of production planning and manufacturing procedures. Lastly, students will understand why it is important for businesses to plan business operations. In objective 2.04, students understand the business use of technology and the common concerns of businesses using technology. In objective 2.05 students will learn how businesses are socially responsible and how the government protects businesses, individuals, and workers while they are conducting business. Also students will understand how the Consumer Bills of Rights protects consumers and government actions for regulating and assisting businesses.

UNPACKED CONTENT

I. Main Types of Business Ownership Table

Type / Sole Proprietorship / Partnership / Corporation
Owner(s) / One person / Two or more people / One or more shareholders, who has one vote per share
Manager(s) / May be owner / Determined by partnership agreement / Managers, board of directors, and shareholders
Formation / Begin buying and selling goods or services, plus may vary by states / Vary by states / Filing of an article of incorporation with state government
Advantages / 1. Easy to form
2. Complete control of business
3. Recipient of 100% of the profit
4. One time taxation / 1. More capital and credit available than a sole proprietorship
2. Work load shared 3. Losses shared /
  1. Capital easy to obtain
  2. Limited liability for shareholders
3. Possibilityunlimited lifetime
Disadvantages /
  1. Limited capital
  2. Unlimited liability
3. Limited lifetime of owner /
  1. Profits shared
2. Decisions made jointly
3. Unlimited liability depending on partnership type /
  1. Double taxation: profits and earnings
  2. Government regulations
  3. Operations controlled by shareholders and board of directors instead of original owner(s)

6200/6600 Principles of Business and Finance Summer 2010 Page 1

Type / Sole Proprietorship / Partnership / Corporation
Liabilities /
  1. Employment
  2. Accidents and injuries on premises
  3. Company vehicle-related
  4. Product-related
  5. Errors and omissions
/
  1. Employment
  2. Accidents and injuries on premises
  3. Company vehicle-related
  4. Product-related
  5. Errors and omissions
/
  1. Employment
  1. Accidents and injuries on premises
  2. Company vehicle-related
  3. Product-related
  4. Errors and omissions
  5. Directors and officers

Examples of liabilities /
  1. Employment: Manager fires an employee that missed significant days from work.
  2. Accidents and injuries on premises: Customer breaks a leg while on business property.
  3. Accidents and injuries on premises: Driver runs into a building while driving company’s car.
  4. Product-related: Toddlers are easily injured by a sharp edge of a toy.
  5. Errors and omissions: Employee accidentally damages a customer’s property.
  6. Directors and officers: One food ingredient that may cause cancer is intentionally omitted from package.

Termination / Decision or life of owner / Actions of the partners, bankruptcy, death, and/or court order / Determined by charter or unlimited lifetime
Source(s) of investment / Personal, gifts, borrowed, and others may vary / Personals of partner(s), gifts, borrowed, and others may vary / Purchase of stocks
Examples of business ownership / Answers will vary. /
  • South Railroad Limited Partnership
  • Eden Limited Partnership
/
  • Bank of America Corporation
  • Lowe’s Home Improvement Store

  1. Other types of business ownership
  2. Specialized partnership

Limited liability partnership

  1. Types of partnerships
  2. Dormant partner
  3. General partner
  4. Secret partner
  5. Silent partner

6200/6600 Principles of Business and Finance Summer 2010 Page 1

  1. Specialized corporations
  2. Subchapter/S-corporation
  3. Limited liability company
  4. Nonprofit corporation
  5. Types of corporations
  6. Domestic

Example: SAS Institute, Inc.

  1. Foreign

Example: 1-800-flowers.com

  1. Alien

Example: Toshiba

  1. Public
  2. Private
  1. Cooperatives
  2. Franchise formats
  3. Business-format franchise
  4. Product trade-name franchise

Websites
Access NC corporations-
fortune500/2007/states/NC.html
Access NC corporations and limited liability partnerships-

Handout of Additional Information

Liability is for which anything a company owes.

Specialized Partners

  1. Dormant partner plays no role and is not known to the public.
  2. General partner plays an active role and has unlimited liability (every partnership must have at least one general partner).
  3. Limited participate as investors and have limited liability.
  4. Secret partner plays an active role but is secret from society.
  5. Silent partner does not have an active role but is known to the public.

Franchise Formats

  1. Business-format franchise requires franchisee to sell products or service in a specific format.

Examples

Jackson-Hewitt Tax Services

Burger King

Firestone Tires

  1. Product-trade franchise allows franchisee to sell specific products. This format is usually formed by automobile, appliance, and petroleum product.

Examples

Marc Jacobson Toyota

Bobby’s Appliance store

Local stores selling Shell brand of gasoline

Types Corporations

  1. Domestic corporations are chartered in a specific state.
  2. Foreign corporations are chartered in one state but doing business in another state.
  3. Alien corporations are chartered in another nation but doing business in a state.
  4. Public corporations are established for governmental purposes.
  5. Private corporations are established by individuals for business or charitable purposes.

Please view PowerPoint 2.01 for additional information on Business Ownership

Name______Class ______Date ______

2.01Types of Business OwnershipBrochure Team Project

Directions:Use appropriate software to make a brochure featuring the types of business ownerships. Save File as: BusOwnTN (TN stands for Team Number). Be sure to save in the CTE drive within your class folder!

Brochure Template

Describe the types of specialized partnerships and corporations
Describe the types of corporations
Describe cooperative
Describe franchise and the formats / Team Names
Date
Period
Class: Principles of Business / Title
Picture
Business Quote
Corporation
  • How many owners?
  • Who manages?
  • How is business started?
  • 2 Advantages
  • 2 Disadvantages
  • Limited or unlimited liability
  • Example
  • How is ownership terminated?
  • Sources of investment
  • 2 Examples-texts, symbols, or pictures
/ Partnership
  • How many owners?
  • Kinds of partners
  • Who manages?
  • How is business started?
  • 2 Advantages
  • 2 Disadvantages
  • Limited or unlimited liability
  • Example
  • How is ownership terminated?
  • Sources of investment
  • 2 Examples-texts, symbols, or pictures
/ Proprietorship
  • How many owners?
  • Who manages?
  • How is business started?
  • 2 Advantages
  • 2 Disadvantages
  • Limited or unlimited liability
  • Example
  • How is ownership terminated?
  • Sources of investment
  • 2 Examples-texts, symbols, or pictures

Name______Class ______Date ______

2.01Types of Business Ownership Key Terms Crossword Puzzle

Directions: Fill in the crossword puzzle using the provided definitions.

Types of Business Ownership Key Terms Crossword Puzzle Continued

Across

5. 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. 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.

Down

1. 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.

TEAM PROJECT

Answering these focus questions:

  • What are the types of business ownership?
  • What are the characteristics of the different types of business ownership?

Your team is to create a project using one of the links on my Business Education webpageto help you. If your team would like to present the project in another way please have your team leader speak to me individually about this. Be creative with your project.

Rubric

Evaluation Criteria / Point Values
4 = Above Average Work (exceeded expectations)
3 = Average Work (met expectations)
2 = Needs Improvement (did not meet all expectations)
1 = Unacceptable (No expectation met)
Focus questions covered in detail / 4,3,2,1
Student proved they understood content / 4,3,2,1
Project was free from errors / 4,3,2,1
Creative / 4,3,2,1

6200/6600 Principles of Business and Finance Summer 2010 Page 1