Business Organizations
Business Organizations
• Sole Proprietorship
– Type of business owned and operated by one
person.
• Partnership
– Type of business owned and operated by two or
more people.
• Limited Partnership
– Type of business where one or more partners bear
little to no risk.
Business Organizations
• Joint Venture
– Temporary partnership set up for a specific purpose
for a set period of time.
• Corporation
– Type of business owned by many people and treated
by law as though it were a person.
• Franchise
– Type of business in which one business sells to
another business the right to use their name and
products.
Mergers
• Merger
– The combining of 2 or more companies to make
one company
Types of Mergers
• Horizontal Merger
– When two or more companies that are in the
same business merge
Pete’s
Shrubs
Landscaping
by
Charlie
PC’s Yard
Services
Types of Mergers
Gas
Stations
• Vertical Merger
– When companies that
are in the line of
production merge
and become one
company
Oil
Refineries
Oil
Fields
Types of Mergers
• Conglomerate
– When many business (3 or more) that make
unrelated products combine to make one
company
Swiffer
Pampers
Pringles
Proctor
and
Gamble
Puma
Crest
Duracell
MACH3
Market Structures
• Perfect competition
– A market structure in which a large number of
firms produce the same product.
• Monopolistic Competition
– A market structure in which many companies sell
similar but slightly different products.
Market Structures
• Oligopoly
– A market structure in which a few large firms
dominate a market.
• Monopoly
– a market dominated by a single seller
Comparing Market Structures
Perfect
Competition
Monopolistic
Competition
Oligopoly
Monopoly
Number of
Firms in the
Industry
Many
Many
A few
dominate the
industry
One
Product
Differentiation
None
Some
Some
None
Control over
prices
None
Little
Some
Complete
Examples
Wheat
Jeans, books
Cars, movie
studios,
breakfast
cereals
Public Water
Types of Monopolies
•
•
•
•
Natural Monopoly
Geographic Monopoly
Technological Monopoly
Government Monopoly
Game Theory
Game Theory
A mathematical method of
decision making in which a
competitive situation is analyzed
to determine the optimal course
of action for a participant.
It is a strategic business plan
among competitors
What is Game Theory?
• The prisoner’s dilemma
– Johnny and Frankie get busted by the police
– They separate the suspects and begin to interview
them
– They place an offer on the table to each one
• Confess that the both of you committed the crime and
you will spend less time in jail than your partner
• If you don’t confess and he does, you will spend more
time in jail
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College Degrees
• On a sheet of paper answer the following:
– What is the major theme of the article?
– Give examples from the article that proves this.
– Write 1 or 2 paragraphs answering these:
•
•
•
•
What are your plans after high school?
What school are you planning to attend?
What major are you planning to complete?
What is your career goal?
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