1­1 Business Organization.notebook
August 10, 2015
Bellwork 8-10-15
The safe way to double your money is to fold it over once and put it in your pocket.
Frank Hubbard, Journalist
1. How do businesses start?
2. What are common everyday products that you think sell
millions each year?
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1­1 Business Organization.notebook
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August 10, 2015
BUSINESS ORGANIZATION
OBJECTIVES
Learn the basic vocabulary of business organizations.
Compute financial responsibility of business ownership based on
ratios and percents.
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1­1 Business Organization.notebook
Key Terms
• capital
- the money used to
start or expand a business
• sole proprietorship
- a business owned by
one person
• profit
- money left after all expenses
are paid
August 10, 2015
• partnership
- a business owned by more than one
person; the partners are personally
liable
• corporation
- a business that can be owned by
one person or a group of people; limited
liability
• shares of stock
- represent shared ownership in a
corporation
• personally liable
• shareholders
- a business owner that is
personally responsible for all
debts of the business whether
or not there is a profit
• limited liability
- people who own shares of stock in a
corporation
- not being able to lose more than the
value of the owned shares
• public corporation
- a corporation where any person can
purchase a share of stock
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1­1 Business Organization.notebook
August 10, 2015
EXAMPLE 1
Michelle invests $15,000 in a partnership that has four other partners. The
total investment of all partners is $240,000. What percent of the business
does Michelle own?
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1­1 Business Organization.notebook
August 10, 2015
CHECK YOUR UNDERSTANDING
Kyle invests $20,000 in a partnership that has five other partners. The total
investment of the partners is $160,000. What percent of the business is
owned by the five other partners?
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1­1 Business Organization.notebook
August 10, 2015
Example 2
The total number of shares of stock in the Bulls Corporation is 650,000. Mike
owns 12% of the shares. How many shares of Bulls Corporation stock does
he own?
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1­1 Business Organization.notebook
August 10, 2015
CHECK YOUR UNDERSTANDING
Jillian owns 60% of the stock in a private catering corporation. There are
1,200 shares in the entire corporation. How many shares does Jillian own?
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1­1 Business Organization.notebook
August 10, 2015
EXAMPLE 3
Three partners are investing a total of $900,000 to open a garden and
landscaping store. Their investments are in the ratio 2:3:5. How much does
the partner that invested the least contribute?
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1­1 Business Organization.notebook
August 10, 2015
CHECK YOUR UNDERSTANDING
Two partners are starting a wedding planning business. The total
investment is $45,000. Their investments are in the ratio 4:5. How much
does each investor contribute?
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1­1 Business Organization.notebook
August 10, 2015
EXTEND YOUR UNDERSTANDING
Two partners each invest 35% in a startup business. They need to find
another investor for the rest of the money. What percent of the business will
that person own? Write a ratio to represent the investments in the business.
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1­1 Business Organization.notebook
August 10, 2015
Homework:
Page 7-8, #'s 1-9, 12, 13, 15
* Signed Syllabus
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