Intro to BusinessChapter 5
Business Organization
5-1 Business in the U.S. Economy5-2 Forms of Business Ownership5-3 Organizational Structure for Businesses
5-1 Business in the U.S. Economy
Employment data:• In 20____, ___________ people held jobs in
the U.S.• Currently there is a higher growth rate for
_____, __________, and _________________workers.
• White Non-Hispanic workers make up _____ of the labor force
• By 2014, nearly one half of all jobs will be held by _________.
5-1 Business in the U.S. Economy
Pressures on Employees• Economic stress can lead to ______________• _______________can help or hurt employees• Work/Life balance (family)• Additional _____________ requirements• Added ______________
Contingent worker –
5-1 Business in the U.S. Economy
Businesses and the Economy• In 20___, all businesses worldwide produced
more than __________ of goods and services; U.S. businesses accounted for ____ of that production
• Roles of Business
• Most U.S. businesses are quite _________
Percent of Businesses by Employee Size
79.3%
18.1%
2.1% .4%
Owner Only 1-19 Employees20-99 Employees Over 100 Employees
5-1 Business in the U.S. Economy
Business Activities• Generating Ideas
• Raising Capital
• Employing and Training ____________• Buying ________ and _________• ___________ Goods and Services• Maintaining Business Records
5-1 Business in the U.S. Economy Types of Businesses
• Producers –
__________ – takes resources from nature __________ – cultivate land or raise livestock ________________ – get supplies from other producers
and convert them into products• Intermediaries –
• Service Businesses–
5-2 Forms of Business Ownership
3 Major Forms of Business Ownership• Proprietorship –
• Partnership
• Corporation –
5-2 Forms of Business OwnershipPROPRIETORSHIP
PROSPROPRIETORSHIP
CONS
5-2 Forms of Business Ownership
Partnerships• Partnership agreement –
Business name, investments, how profits and losses will be shared, responsibilities of each person, how partnership can be dissolved
• Most states require that partnership _________ a business name as well as the name of each person in the partnership
5-2 Forms of Business OwnershipPARTNERSHIP
PROSPARTNERSHIP
CONS
5-2 Forms of Business Ownership
Corporations• Articles of Incorporation –
• Must create corporate _______ and name a ______ of ________
• Issues shares of ________to investors
• Most popular form of ownership for _______ businesses
5-2 Forms of Business OwnershipCORPORATION
PROSCORPORATION
CONS
5-2 Forms of Business Ownership
Other Forms of Ownership• Limited Liability Partnership• Joint Venture (two or more businesses unite)• S-Corporation• Limited Liability Company (LLC)• Nonprofit Corporation• Cooperative• Franchise –
5-3 Organizational Structure for Businesses
Many new businesses _____ in the first years
The direction for the business comes from its mission statement –
Businesses must create:• _________ – results the business expects to achieve• _________– guidelines for decision-making• _________ – descriptions of the way work is done
5-3 Organizational Structure for Businesses
Principles of Effective Organization
• Responsibility, Authority and Accountability
• Unity of Command
• Span of Control
5-3 Organizational Structure for Businesses
Organizational Structures
Organization chart –
Functional organizational structure –
Matrix organizational structure –
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