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 –