#1696. The Three Forms of Business

other, level: Senior
Posted Tue Apr 25 08:28:51 PDT 2000 by Frank Blair (fjb582hotmail.com).
Three Forms of Business
Indiana University of Pennsylvania, Indiana
Concepts Taught:

COURSE: Business Chapter: 9

TEACHER: Mr. Blair Grade: 11

I. Objectives

1. After completion of the unit the students will be able to identify and define, in
writing, the three forms of business organizations with 100% accuracy using
in class worksheets.

2. Given a class note outline the students will be able to identify and list, in writing, the advantages and disadvantages of the three forms of business with 100% accuracy.

II. Beginning Activities (2-3)

A. Preliminary Activities

1. Greet class
2. Set up and test equipment.
3. Test overhead.
4. Organize transparencies.
5. Overview of lesson.

B. Materials needed

1. Chalkboard/Dry erase board.
2. Calk/Dry erase marker.
3. Overhead projector.
4. Overhead transparencies.
5. Class outlines.

III. Introduction (3-5)

A. Review Lesson

1. Introduce the three forms of business.

a. Proprietorship
b. Partnership
c. Corporation

2. Introduce the advantages and disadvantages of the three forms of business.

IV. Development (3-5)

A. Examples of the three forms of business.

1. Proprietorship

a. Kiesel Funeral
b. HomeMimo's
c. PizzaPatty's restaurant

2. Partnership

a. Smith & Smith Lumber
b. Saylor Brothers' Hardware
c. Delaney Ford

3. Corporation

a. Nike
b. McDonald's
c. Ford

V. Application (10-15)

A. Identify and define the three forms of business organizations.

1. Proprietorship
2. Partnership
3. Corporations

B. Identify the advantages and disadvantages of proprietorship.

1. Advantages:

a. Easy to start
b. Little governmental regulations
c. Profits stay with the owner
d. Pride of ownership
e. Complete control
f. Lower taxes

2. Disadvantages:

a. Unlimited liability
b. Limited life of the business
c. Difficult to raise money
d. Rick of loss not shared

C. Identify the advantages and disadvantages of partnership.

1. Advantages:

a. Easy to start
b. Little governmental regulation
c. Not difficult to raise money
d. Combination of skills

2. Disadvantages:

a. Unlimited liability
b. Profits are shared
c. Limited life of business
d. Disagreements

D. Identify the advantage and disadvantages of a corporation

1. Advantages:

a. Easy to raise funds
b. Limited liability
c. Unlimited life
d. Specialization management
e. Risks are shared

2. Disadvantages:

a. Difficult to start
b. Less direct control
c. Double taxation
d. Limited activities

VI. Review (5-7)

A. Review forms and definitions of the three forms of business.

B. Review the advantages and disadvantages of the three forms of business.

TRANSPARENCIES FOR CLASS

THREE FORMS OF BUSINESS T-1

Proprietorship:

Is a form of business in which there is one owner.

Partnership:

Is a type of business organization in which there are two or more owners.

Corporation:

Is an organization of people legally bound together by a charter to conduct some type of business.

ADVANTAGES OF PROPRIETORSHIP:

1. Easy to start

2. Little governmental regulations

3. Profits stay with the owner

4. Pride of ownership

5. Complete control

6. Lower taxes

DISADVANTAGES OF PROPRIETRORSHIP:

1. Unlimited liability

2. Limited life of the business

3. Difficult to raise money

4. Risk of loss not shared

ADVANTAGES OF A PARTNERSHIP:

1. Easy to start

2. Little government regulations

3. Not difficult to raise funds

4. Combination of skills

DISADVANTAGES OF A PARTNERSHIP:

1. Unlimited liability

2. Profits are shared

3. Limited life of business

4. Disagreements

ADVANTAGES OF A CORPORATION:

1. Easy to raise funds

2. Limited liability

3. Unlimited life

4. Specialized management

5. Risks are shared

DISADVANTAGES OF A CORPORATION:

1. Difficult to start

2. Less direct control

3. Double taxation

4. Limited activities