Aim: Which business organization is the best model? (Self Proprietor, Partnership and Corporation) By Mr. Larenas

1. Aim: Which business organization is the best model? (Self Proprietor, Partnership and Corporation) By Mr. Larenas

2. Video Clip • http://www.youtube.com/watch?v=Olv1w26kI_8 • Some Questions to think about while watching this clip. • What is an entrepreneur? • What emotions did you feel when watching the negotiations between the entrepreneur and the loan sharks? • Did anything particularly stand out when watching the video clip?

3. Definitions of Key Terms • Self-Proprietor: an unincorporated business with one owner who pays personal income tax on profits from the business. Simplest business model • Partnership: An association of two or more persons engaged in a business enterprise in which the profits and losses are shared proportionally. • Corporation: A legal entity that is separate and distinct from its owners. Corporations enjoy most of the rights and responsibilities that an individual possesses

4. Directions for Game • Mr. Larenas will break the class into four groups, each group will be assigned a different business organization • Students will be handed a paper which company’s they can invest in to make materials for their business. • Students will be handed monopoly money to invest into one company that will build the materials they need for their business. • After receiving the money, each group will create a creative name for their business, and have a slogan for their company. • Each group will be given about 10-15 minutes to make a decision in what company to invest in. • Each group will be graded with a rubric based on group work and group participation. • Most importantly have fun!!!

5. Questions to think about during the Game? • What advantages or disadvantages does your business organization have in investing your money? • Was coming to a unanimous decision to invest your money easy or hard? Explain • Do you think your business could get an invest from the loan sharks from the show “Shark Tank”? Explain

6. Company's to invest • Company A • Has over 1,000 employees and is one of the most efficient companies worldwide. The company pays its workers very well and is always on time with orders. However, there have been rumors that workers are planning a strike due to harsh working conditions. These reports are simply rumors but if they strike, it could hurt sales before the busy holiday season. • Company B • Has over 1,000 employees and is the fastest in making supplies. However, in recent news there have been reports that some parts made by the company may have been infected with a dangerous chemical. The company claims that these reports are false and biased to hurt their business. If the reports are true, the recall of your products will cost about 50% of your profit and the loss of consumer confidence in your business. • Company C • Have about 500 employees where all of its workers are located in a third world country. Workers are paid low wages so your business will earn double the profits when selling your product. However, there have been rumors that this company is overcharging you for materials and could possibly be losing profits. If these reports are true, your business could be losing 50% on profits and could force your business into bankruptcy. • Company D • Has about 500 employees and the location of this company is the southern United States. This company is on time with orders and is very friendly with your business. However, there have been reports that this company and some of your employees have been doing some illegal inside trading on the stock market to inflate the value of your business. If these reports are true, your business will be taken off the stock market, lose all of your profits and will be under federal investigation for manipulating stock market which could cause another Great Depression.

7. Outcomes • Company A • Congratulations, the reports are false of the workers striking and your business earns $ 1.5 million in profit. Your business has become one of the highest earners in the quarter and earns national recognition for your achievement. • Company B • The reports are true as the national media have claimed about 50 people died nationwide from the contaminated product. The recall of the product has cost your business $ 2 million dollars and for the next five years, your business will struggle to get back your loyal customers. • Company C • The reports are false and turns out the company was charging your business low prices for making the materials you need. Your business earns $5 million dollars and now is a monopoly in your business field. • Company D • The reports are true as federal investigators storm your business and arrest the employees involved in the illegal trading on the stock market. Another Great Depression grips the world as 60% of the worldwide workforce is unemployed and all of your business profits are seized by the federal government. Your business manages to avoid bankruptcy but the world will suffer massive unemployment for the next twenty years.

8. Company A Results • Congratulations, the reports are false of the workers striking and your business earns $ 1.5 million in profit. Your business has become one of the highest earners in the quarter and earns national recognition for your achievement

9. Company B Results • The reports are true as the national media have claimed about 50 people died nationwide from the contaminated product. The recall of the product has cost your business $ 2 million dollars and for the next five years, your business will struggle to get back your loyal customers.

10. Company C Results • The reports are false and turns out the company was charging your business low prices for making the materials you need. Your business earns $5 million dollars and now is a monopoly in your business field.

11. Company D • The reports are true as federal investigators storm your business and arrest the employees involved in the illegal trading on the stock market. Another Great Depression grips the world as 60% of the worldwide workforce is unemployed and all of your business profits are seized by the federal government. Your business manages to avoid bankruptcy but the world will suffer massive unemployment for the next twenty years.

12. Homework • At home, the students will watch Shark Tank episode 2 season 1(http://www.youtube.com/watch?v=Olv1w26kI_8) and answer three questions in complete sentences. Which business organizations were shown in the episode? How much money was offered by the loan sharks for each business? Which loan shark is you favorite/ least favorite and explain why?