CHAPTER 3

Name _________________

3.1 TYPES OF BUSINESS

Date

_________________
3.2 TYPES OF BUSINESS OWNERSHIP

5 MINUTES ON YOUR OWN

(1) When I think of

Class _________________

5 MINUTES ON YOUR OWN

business, what type of business do I think of first?

__________________________________________________________________________________________________
(2) What is a good

definition of business?

__________________________________________________________________________________________________
__________________________________________________________________________________________________

categories that could be used to describe business (for example,

(3) Name some

large or small)

sell their goods or services

(4) Do you think most businesses

to other
businesses or to the general public? Explain why you chose your answer:
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________

3.1 TYPES OF BUSINESS

TYPE

DEFINITION

PICTURE

2 Examples:

2 Examples:

2 Examples:

2 Examples:

With a partner find 2 examples of each type of business in the

textbook (pages 51-53)
Fill in the

195
0

timeline below based on the slide Trends in Business Startups

196
0

197
0

198
0

Now and in the

future
What
types of business were the
What was the
what
is
the
dominant
majority
of the American
dominant industry in
type of business?
economy by 1970?
the 1950s?

199
0

200
0

Name ___________________________________________________________
Date ____________________________________________________________
Class
____________________________________________________________
Subject
__________________________________________________________

Four Types of Businesses Bingo

Directions: With a partner, use your notes today from the definitions (previous page) to fill in the
following chart:
Notes:

Type of
Business

Check
1:

Check 2:

Check 3:

Check 4:

Create
s
Produ
ct

Buys From

Sells To

Quantity
Bought/S
old
Examples

Manufactu
ring

Wholesale

Retail

Service

Guided Practice:
Company

Questions you have for your teacher:

Type of Business

Four Types of Businesses Bingo Independent

Practice
Directions: For each company below, determine whether it is a Manufacturer, Wholesaler,
Retailer, or Service. (Hint, Some companies might be more than one type of business.)
Company Name

Type of Business

Company Name

1. Duane Reade

9. Guitar Player

2. Costco

10.H&M

3. Rauls Car Repair Shop

11.Police Officer

4. Acme Construction
Company
5. Hanes White T-Shirt
Factory

Type of Business

12.Cecilias Cake Shop

13.Dell Computers

6. Staples

14.President Obama

7. Sonnys Snow
Shoveling
8. Bobs Buy-In-Bulk
Grocery

15.Mikes Medical
Supplies (sells in
large quantities)
TOTAL ________/15

After you have determined what type business each company is, pick 9 of the
companies and fill in their names on your BINGO sheet below.

Business BINGO!

CHAPTER 3

Name

_________________

3.1 TYPES OF BUSINESS

Date

_________________
3.2 TYPES OF BUSINESS OWNERSHIP

5 MINUTES AS A
MINUTES AS A CLASS

Class _________________

CLASS

THINK TO YOURSELF:

If a business fails, should the owner be

responsible for paying its debts, even if it means
selling or a home or a car?
Answer

YES
NO

If YES, BE READY to explain why you believe a business owner

should be personally responsible for the debts of his or her
business.
If NO, BE READY explain why you believe a business owner
should not be personally responsible for debts of his or her
business.

WHOSE fault is it if a business fails? Explain.

(write as we discuss)
__________________________________________________________________________________________________
__________________________________________________________________________________________________

__________________________________________________________________________________________________

3.2 TYPES OF BUSINESS OWNERSHIP

Liability: ___________________________________________________________________________
___________________________________________________________________________________

Unlimited Liability: Owner __________________forced to pay with personal money and possessions

Limited Liability: Owner ____________________ forced to pay with personal money and possessions

III. Guided Notes

Ownership
type
Sole
Proprietorshi
p

Partnership

Corporation

Limited
Liability
Corporation
(LLC)

Who
owns?

# of
owner
s

Liabilit
y

Advantages

Disadvantages

Types of Business Ownership-Independent Practice

Directions: For questions 1-5, identify the type of business ownership described in each scenario. For
questions 6-10, identify the type of business ownership that would be best for the business idea described in
the scenario.
Scenario
Ownership Type
1. Your mother and her five sisters all own a salon on Jackson Avenue. They pay all of
the salons bills and split all of the profit evenly among the group.

2. Apple is a large company that makes computers, tablets, phones, and software. Its
co-founder and CEO, Steve Jobs, recently passed away.
3. Every morning you stop by a breakfast cart to get a cup of hot chocolate. You always
take a few minutes to talk with Adnan, the only owner of the cart.
4. George and Georgette are both pediatricians and own a private practice together.
Even though they have insurance, they made sure that they have limited liability so
that they wont lose everything if either of them is sued for malpractice.
5. Juan, Juana, John, and Johna own a recording studio. Juan and John hate music, so
they dont actually do anything to help run the business, but they spent a lot of their
own money to get the business started.
6. You and your brother have a great idea for the worlds first fully solar powered car.
Youve drawn up a great business plan, but you cant get started until youve raised $5
million to cover the cost of the factory and workers that will produce the car. What
type of business ownership will be best for you and your brother?
7. Berta is a single mother who makes jewelry in the evenings so that she can earn a
little extra money for her and her two children. Women in the community have started
to buy Bertas necklaces in bracelets because theyre so creative. As her sales
continued to increase, Berta realized that she could make more money with her
jewelry business than her job. She wants to start her own company as quickly and as
cheaply as she can. What type of business ownership will be best for Berta?
8. You are a math genius, but youre not very creative. However, your two best friends
are incredibly talented artists. Who have been selling t-shirts on the weekends that
they designed themselves. They want you to become involved with the business
because they think that you could help them with the math parts of running their
company. What type of business ownership will be best for you and your
friends business?
9. Youre a phenomenal chef, so you want to start your own restaurant. Youve taken a
loan from the bank to cover the startup costs of your restaurant, but you wont have
much left over once you get the place up and running. You know that the restaurant
business is risky, and you want to make sure that your house and car cant be taken
by the bank if your restaurant fails. What type of business ownership will be
best?
10. Monika owns and operations three very successful cake decorating shops. As the
sole proprietor, she has benefitted from her business ownership structure because
she has not had to split any profits and she has had total creative control. Now
though, she is planning to turn her shop into a franchise so that other businesspeople
can open new decorating shops in upstate New York and throughout Boston. Which
type of business ownership will be best to meet her goals of expanding?