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BELLRINGER ON YOUR ½ SHEET
1. Describe a time when you were injured at a business, or might have been injured.
Why are Entrepreneurs important?2 reasons
Say you want to become…
Risk vs. Reward How likely is my business to cause harm?
Liability Responsibility for risks
Sole Proprietorship Single person 2 positives, 2 negatives Good for: low liability, low entry costs Benefits: single person has all control and keeps
all profits Drawbacks: single person assumes all risk, hard to raise capital
Examples: small construction firms, artistic firms, bloggers, import/export
Partnerships
Two or more people in business together 2 positives, 2 negatives
Good for: low liability Benefits: low entry costs, shared costs Drawbacks: partners assume all risk hard to raise capital, agreements “like a marriage”
Examples: law firms, small specialized firms
Subway page 218
Liability
If your Sole Proprietorship or Partnership is sued…
They can take:Your houseYour carYour money in the bankYour future money!!!
What happens if? New
Restaurant!!!
Corporation A legal “person” Good for: higher liability Benefits: owners protected easier to raise capital Drawbacks: double taxation increased regulation
Examples: restaurants, LLC’s, Sports Franchises
Double taxation Corporation pays its own taxes: 25-35% Corporation pays employees wages/salary Employees ALSO pay taxes: 20-38%
Trade off is less liability more tax
2 types of Corporations
Privately held – owned by founders or owners
Publicly held – owned by shareholders
#2 OPTIC graph on page 220
CorporationsPartnershipsSole Proprietorships
On a full sheetBellringer
1. OPTIC for this graph
Source: Forbes Magazine 2011
Which of the 3 business orgs would you use to start a…..
Which of the 3 business orgs would you use to start a…..
Which of the 3 business orgs would you use to start a…..
Which of the 3 business orgs would you use to start a…..
Which of the 3 business orgs would you use to start a…..
Tile setting
Which of the 3 business orgs would you use to start a…..
Which of the 3 business orgs would you use to start a…..
Which of the 3 business orgs would you use to start a…..
Which of the 3 business orgs would you use to start a…..
Business Org Closure Pages 220-2232. How hard would it be to file articles of incorporation
in the state of Arizona?3. What is the difference between common and
preferred stock?4. Explain how double taxation works.5. What would you have to do if you wanted to open a
Subway franchise?6. Compare and contrast the advantages of owning a
franchise like a Subway. 3 for each7. Which business organization should you use to
open a restaurant? & why?8. Which business organization should you use to
open a computer tech company? & why?QE. Find an entrepreneur in the book who you could admire and
explain what you could learn from them. (list on page “x”)