1 / 13

Unit 3: The Market Economy EC 2.9 Describe the various methods of organizing production.

Unit 3: The Market Economy EC 2.9 Describe the various methods of organizing production. Essential Question: How are businesses organized in a market economy?. Entrepreneurship. A person who takes a risk to produce goods and services in search of a profit.

holly
Download Presentation

Unit 3: The Market Economy EC 2.9 Describe the various methods of organizing production.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit 3: The Market Economy EC 2.9 Describe the various methods of organizing production. Essential Question: How are businesses organized in a market economy?

  2. Entrepreneurship • A person who takes a risk to produce goods and services in search of a profit. • May establish a business according to any of the three types of organizational structures. Click me!

  3. Entrepreneurship Examples:

  4. Sole Proprietorship • A form of business organization with one owner who takes all of the risks and all of the profits. • Proprietor makes all decisions. • Proprietor risks everything. • Proprietor is their own boss. • Proprietor can keep all of the profits.

  5. Sole Proprietorship Examples: Can YOU think of any?

  6. Partnership • A form of business organization with two or more owners who share in the risks and the profits. • The partners make all of the decisions. • The partners share all the risks. • Most partnerships are small (2 people). • Can share the start-up costs. • Recognize partnerships by the name.

  7. Partnership Examples:

  8. Corporation • A form of business organization that is authorized by law to act as a legal person regardless of the number of owners. • Owners share the profits and the risks. • Multiple stockholders can own the business. • Corporate leaders and stockholders make decisions.

  9. Corporation • Stockholders risk their investment – the amount of the investment varies. • Each share of stock represents part of a corporation. • Permanent organization – you only risk the money you decide to put in (invest) and you decide how much to put in (invest).

  10. Corporation Examples: New CEO of Apple, Inc. Apple, Inc. Stockholders

  11. Franchise • A business system that uses a company’s existing business model. • Business owners of each franchise are independent owners. • They become licensed, or pay into the established business plan, agreeing to follow that model. • The franchise provides training, resources, and support. • In exchange for a “ready to go” business, franchisees pay royalties, or portions of their profits, back to the franchise.

  12. Cooperative • Businesses owned and operated jointly by a group of people. • The cooperative runs for the shared benefit of everyone in the co-op. • Many types of cooperatives exists, from social to retail. Some operate for a profit, while others are non-profit.

  13. Business Ownership— How Sweet it Is! • Go to • Go to www.econedlink.com • Search “How Sweet it Is” • Scroll down to Activity 2—”Sweet Opportunity” • Follow the link and read each client stories • Head your own paper—“Client Recommendations” and • write a recommendation for each client • Scroll down to Activity 3—”Sweet Success” • On the back of your paper, head it “Sweet Success” • Choose an entrepreneur and answer the questions

More Related