SOME UNDERSTANDINGS RELATED TO VARIOUS BUSINESS SOME UNDERSTANDINGS RELATED TO VARIOUS BUSINESS AND TACTICS THEY USEAND TACTICS THEY USE

Types of BusinessTypes of Business

Michael Quinones, NBCTwww.socialstudiesguy.com

Essential Question

How are certain types of businesses [ex. sole proprietorship, corporation, conglomerate, partnerships and monopoly] better than others?

Sole ProprietorshipSole Proprietorship Most Most commoncommon business in the business in the

United States.United States.

Owned by a Owned by a single personsingle person or or family.family.

Examples?Examples? Barbershops, dry cleaners, small Barbershops, dry cleaners, small

restaurants.restaurants.

AdvantagesAdvantages?? Owner answers only to the law Owner answers only to the law

and customer desire.and customer desire.

DisadvantagesDisadvantages?? Owner must come up with all Owner must come up with all

the capital.the capital. Owner is responsible for all Owner is responsible for all

debts and liabilities.debts and liabilities.

PartnershipPartnership Least commonLeast common type of type of

business in the U.S.business in the U.S.

Owned by multiple people.Owned by multiple people.

Examples?Examples? Sanford and Son, Johnson and Sanford and Son, Johnson and

Johnson, Siegfried and Roy.Johnson, Siegfried and Roy. AdvantagesAdvantages?? Shared capital, shared Shared capital, shared

responsibility, shared responsibility, shared workload.workload.

DisadvantagesDisadvantages?? More than one idea about how More than one idea about how

to solve problems, potential for to solve problems, potential for conflict.conflict.

CorporationCorporation An entity formed An entity formed

to legally to legally operate as a operate as a separate person.separate person.

Formed to Formed to protect protect persons persons [business [business owner]owner]from from debts, debts, obligations obligations and and liabilitiesliabilities..

CorporationCorporation

This This entity can ownentity can own property, land and other property, land and other assets.assets.

Corporations usually Corporations usually owned by numerous owned by numerous people (stock holders).people (stock holders).

Often controlled by a Often controlled by a board with officers: board with officers: Chairman,Chairman, president, president, treasurer,treasurer, directorsdirectors..

ConglomerateConglomerate

A corporation that owns A corporation that owns two or more closely tied two or more closely tied companies that have companies that have combined forces.combined forces.

The smaller companies The smaller companies often keep their names to often keep their names to remain familiar to remain familiar to customers.customers.

The “mother company” is The “mother company” is the common owner of all the common owner of all the companies.the companies.

Media Conglomerate Time Warner

MonopolyMonopoly GreedGreed:: the desire for more than the desire for more than

your fair share.your fair share.

Greed drives some types of Greed drives some types of businesses to eliminate businesses to eliminate competition from other competition from other businesses.businesses.

MonopolyMonopoly: a single business : a single business that seeks to force competitors that seeks to force competitors out of business.out of business.

J.D. Rockeller formed an oil J.D. Rockeller formed an oil monopoly but had his company monopoly but had his company broken up by broken up by anti-trust lawsanti-trust laws

John D. Rockefeller

SourcesSources

http://upload.wikimedia.org/wikipedia/en/thumb/http://upload.wikimedia.org/wikipedia/en/thumb/3/34/Ice-cube-barbershop.jpg/300px-Ice-cube-3/34/Ice-cube-barbershop.jpg/300px-Ice-cube-barbershop.jpgbarbershop.jpg

http://neighborhood-cleaners.com/images/http://neighborhood-cleaners.com/images/strasburg-dry-cleaning-store.jpgstrasburg-dry-cleaning-store.jpg

http://www.merck.de/servlet/PB/show/1326990/http://www.merck.de/servlet/PB/show/1326990/EMerck_Soehne_177.jpgEMerck_Soehne_177.jpg

http://www.billy-ball.com/images/http://www.billy-ball.com/images/clip_image003_000.jpgclip_image003_000.jpg