Business Management

• 10/1/2008• Bell Activity

– On a piece of paper, identify at least 5 characteristics you think a successful entrepreneur must possess to be successful

• Each group compare list and come to a consensus on top 3 characteristics.

– Hand back quiz from Monday.

Does anybody know what today is??

Propritorships & Partnerships

Chapter 5

Formula for success: Under promise and over deliver.

Introduction to Chapter 5

Objectives• Describe the characteristics of

successful entrepreneurs• Compare and contrast the

similarities and differences between proprietorships and partnerships.

– SLE – 2.1

Characteristics of Entrepreneurs

• Self-starters• Energetic• Independent• Take charge people • Creative thinkers• Personable• Experienced• Well informed

Forms of Business

• In your group, select a business that you might want to start some day, such as a retail store.– Provide a name for your business– Write one sentence that describes your

business– List any questions (at least 2) that you will

need to address if you were to actually open this business.

Propritorships

ADVANTAGES• Owner is boss• Owner receives all profits• Owner personally knows

employees and customers• Owner can act quickly in

decision making• Owner is free from red tape• Owner usually pays less

income tax than a corporation

• Owner may lack necessary skills and abilities

• Owner may lack funds• Owner bears all losses• Illness or death may

close the business

DISADVANTAGES

PARTNERSHIP

ADVANTAGES• Skills and abilities pooled• Sources of capital increased• Credit position improved• Contribution of goodwill• Increased concern in

business management• Less tax burden that

corporations• Reduction in competition• Retirement from

management• Operating economies

DISADVANTAGES

• Unlimited financial liability• Disagreement among

partners• Each partner bound by

contracts of others• Uncertain life• Limited sources of capital• Unsatisfactory division of

profits• Difficulty in withdrawing

from partnership

Partnership vs. Proprietorship

• Identify similarities and differences don’t just copy the definition, but discuss how they are similar and different.– Without using your book– Discuss

For Tomorrow

• Review Facts #’s 1-10

• Analyze Information P. 132

• Have a great afternoon!!