• Standards: 3.1 3.2 3.4 3.9

• Objectives:

1) Explain the characteristics of sole proprietorship.

2) Analyze the advantages of a sole proprietorship.

3) Analyze the disadvantages of a sole proprietorship.

Types Of Business: Sole Proprietorships

Vocabulary *Sole Proprietorships: is a business owned and managed by a

single individual

*Business License: Is an authorization from the local government to operation a business

*Fringe Benefits: are payments to employees other than wages or salaries, such as paid vacation, retirement pay, and health insurance

*Zoning Laws: Laws in a city or town that designate certain areas, or zones, for residential and business use

*Free Enterprise: an economic system in which private business operates in competition and largely free of state control

* Elasticity: is the measurement of how responsive an economic variable is to a change in another

AdvantagesAdvantages:

Owned by one person so there are minimal mistakes Small amount of paperwork and legal expense Fewer regulations Federal Government offers aid to entrepreneurs to help their businesses grow. Owner gets to keep all the profits after paying income taxesCan run their businesses as they wishYou are your own boss

DISADVANTAGES Unlimited personal liability Fully responsible for their own business debts You may have to pay out of pocket for own equipment Banks are sometimes unwilling to offer loans to business that

have not been operating long Sometimes a sole proprietorship has great sales but not

accounting Not enough hours or coworkers to get all the work finished If a sole proprietor retires or dies then the business might stop

existing because someone else might not buy the business Often you have a hard time to find and keep good employees Many times they do not offer the security and advancement

opportunities that most people look for in a job

*By Tax Return

Under $25,000$25,000-49,999$50,000-$99,999$100,000-$499,999$500,000-$999,999

*By Type

SalesReal Estate

Finance and Insurance

Retail

Manufacturing

Consturction

Agriculture

Accomodation and food services

Healthcare and Social Assistance

Administrative support

Manangement, scientific, and technical consulting

Professional, scientific, and tech-nical services

Other services, including legal

Pep Screen and Embroidery Services:

*Screen Printing

*Embroidery

*Design and Graphics

Supply and Demand: Elizabethton | Johnson City | Tri Cities | Bristol | Kingsport

Competition: Doe Valley Printing and online stores

As the quantity of the product goes up the demand goes down. Wherever the two cross is where the perfect amount is.