© 2012 cengage learning. all rights reserved. principles of business, 8e c h a p t e r 5 slide 1...

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e

C H A P T E R 5

5-15-1 Business in the U.S. Economy

5-25-2 Forms of Business Ownership

5-35-3 Organizational Structure for Businesses

55C H A P T E R

Economic Decisions Economic Decisions and Systemsand Systems

© 2012 Cengage Learning. All Rights Reserved.

5-15-1 Business in the Business in the U.S. EconomyU.S. Economy

Goal 1 Describe the changing status of U.S. employment.

Goal 2 Discuss the role of business in the U.S. economy.

Goal 3 Describe three major types of businesses.


C H A P T E R 5

KEY TERMS

● contingent worker

● intermediary

● service business


C H A P T E R 5THE CHANGING U.S. JOB MARKET

● Employment data

● Pressures on employees


C H A P T E R 5

Checkpoint

● List several groups that will increase as a percentage of the total U.S. workforce in the next decade. ● Younger workers (16–24 years of age)● Asian-, Hispanic-, African-American groups● Women


C H A P T E R 5BUSINESS AND THE ECONOMY

● Size of U.S. businesses

● Roles of business

● Impact on a community


C H A P T E R 5PERCENT OF BUSINESSES BY EMPLOYEE SIZE


C H A P T E R 5

BUSINESS ACTIVITIES

● Generating ideas

● Raising capital

● Employing and training personnel

● Buying goods and services

● Marketing goods and services

● Maintaining business records


C H A P T E R 5

Checkpoint

● What are the basic activities completed by all businesses?● Generating ideas● Raising capital● Employing and training personnel● Buying goods and services● Marketing goods and services● Maintaining business records


C H A P T E R 5

TYPES OF BUSINESSES

● Producers

● Intermediaries

● Service businesses


C H A P T E R 5

Checkpoint

● How does a manufacturer differ from an extractor? ● An extractor takes natural resources, such

as oil or timber, for direct consumption or for use in developing other products.

● A manufacturer takes resources supplied by others and converts them into useable products.


5-25-2 Forms of Business Forms of Business OwnershipOwnership

Goal 1 Understand the three major forms of business ownership.

Goal 2 Determine when each form of business ownership is most appropriate.

Goal 3 Recognize other specialized business ownership forms.


C H A P T E R 5

KEY TERMS

● proprietorship

● partnership

● corporation

● partnership agreement

● articles of incorporation

● franchise


C H A P T E R 5

BUSINESS OWNERSHIP

● Proprietorship

● Partnership

● Corporation


C H A P T E R 5

Forms of Ownership

U.S. Business Comparison by Form of Ownership

Form of Ownership

Number of Businesses

(2006)

Total Revenue (Thousands)

Percent of All Businesses

Percent of Total Revenue

Proprietorship 22,075,000 1,278,000,000 71.53% 4.06%

Corporation 5,841,000 26,070,000,000 18.93% 82.82%

Partnership 2,947,000 4,131,000,000 9.55% 13.12%

Total 30,863,000 31,479,000,000 100.00% 100.00%


C H A P T E R 5

Checkpoint

● What are the differences between the three main forms of business ownership?● Business forms differ in the ways in which

decision-making and investments are made and to whom liabilities are distributed.


C H A P T E R 5CHOOSING A FORM OF BUSINESS OWNERSHIP

● Choosing a proprietorship

● Choosing a partnership

● Choosing a corporation


C H A P T E R 5

Checkpoint

● Which form of business ownership is the most complex and difficult to form?● The corporation is more complex to begin

than other business forms. ● Forming a corporation requires much more

bureaucracy, is more subject to government regulations, requires the organization of a board, and must have clearly defined bylaws.


C H A P T E R 5OTHER FORMS OF OWNERSHIP

● Specialized partnerships and corporations

● Cooperatives and franchises


C H A P T E R 5

Checkpoint

● What are the other specialized forms of business ownership?● Limited liability partnership● Joint venture● S corporation● Limited liability company (LLC)● Nonprofit corporation


5-35-3 Organizational Organizational Structure Structure for Businessesfor Businesses

Goal 1 Understand important principles in designing an effective organization.

Goal 2 Compare alternative organizational structures for businesses.


C H A P T E R 5

KEY TERMS

● mission statement

● goal

● policies

● procedures

● organization chart


C H A P T E R 5DESIGNING AN EFFECTIVE BUSINESS ORGANIZATION

● Setting direction

● Principles of effective organization● Responsibility, authority, and accountability● Unity of command● Span of control


C H A P T E R 5

Checkpoint

● What is the difference between a mission statement and a goal?● A mission statement states the purpose of

existence for a business and what it hopes to achieve.

● A goal is a more specific statement of what a business expects to achieve and may be used to measure a business’ success.


C H A P T E R 5TYPES OF ORGANIZATIONAL STRUCTURES

● Functional organization structure

● Matrix organizational structure


C H A P T E R 5BUSINESS ORGANIZATION CHART


C H A P T E R 5

Checkpoint

● What problems can result from the use of a functional organizational structure?● Employees in a functional organizational structure

may tend to lose sight of overall corporate goals. ● Workers tend to be limited to specific duties and

may not see their relationship to the organization as a whole.

● This can result in lack of interest and motivation over time.

© 2012 cengage learning. all rights reserved. principles of business, 8e c h a p t e r 5 slide 1...

Documents

business records slide

principles of business

community slide

cengage learning

business activities

role of business

p t e r economic decisions

form of business ownership