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Used with permission. Master Curriculum Guide: Economics and Entrepreneurship, copyright 1991,
National Council on Economic Education, New York, NY. All rights reserved.
For more information visit www.ncee.net or call 1-800-338-1192.
2. Distribute Activity 51. Review the information 6. Invite several entrepreneurs to the next class.
on the activity sheet with the students. Using Activity 52 and the students' compilation
Emphasize the legal liability, the tax of questions, have students interview the
obligations, and financial responsibilities for entrepreneurs. Students can tape these
the business owner of each type of business interviews with both audio and video
organization. recorders. Try to include entrepreneurs
representing different types of business
3. Divide the class into groups. Ask each group organizations in the group.
to compile a list of questions it would like to ask
an entrepreneur about his or her business. EVALUATION:
Organize the class in small groups. Using Activity
4. Ask the groups to share their lists. Write the 52 as a guide, have the groups identify and
questions on the blackboard. develop profiles of businesses in the local
community that are representative of each of the
5. Distribute Activity 52 or project as a three types of business organizations presented
transparency and have students write the in Activity 50.
guidelines in their notebooks.
Used with permission. Master Curriculum Guide: Economics and Entrepreneurship, copyright 1991,
National Council on Economic Education, New York, NY. All rights reserved.
For more information visit www.ncee.net or call 1-800-338-1192.
ACTIVITY 50
Types of business organizations
Sole proprietorship
A form of business organization that is owned
and managed by one individual who assumes
all risk of loss and receives all profits.
Partnership
A form of business organization that is owned
by two or more individuals who assume all risk
of loss and receive all profit.
Corporation
A form of business organization that is created
by law, functions as a separate legal entity,
and is owned by two or more individuals called
stockholders. Stockholders are at risk only for
the amount of their financial investment.
Used with permission. Master Curriculum Guide: Economics and Entrepreneurship, copyright 1991,
National Council on Economic Education, New York, NY. All rights reserved.
For more information visit www.ncee.net or call 1-800-338-1192.
ACTIVITY 51
Advantages and disadvantages of types of
ownership
Forms of ownership Advantages Disadvantages
Sole proprietorship 1. Low start-up costs 1. Unlimited liability
2. Greatest freedom 2. Lack of continuity
3. All profits to owner 3. Difficulty in raising capital
4. Owner in direct control
Partnership 1. Easy to form 1. Unlimited liability
2. Low start-up costs 2. Lack of continuity
3. Divided authority 3. Divided authority
4. Difficulty in finding suitable partner
Corporation 1. Limited liability 1. Close regulation
2. Specialized management 2. Most expensive to organize
3. Ease of raising capital 3. Extensive record-keeping
Franchise 1. Smaller than usual capital investment 1. Possible high franchiser fee
2. Prior public acceptance of product 2. Some loss of independence
3. Better than average profit margins 3. Possible difficulties in canceling contract
4. Management assistance
Used with permission. Master Curriculum Guide: Economics and Entrepreneurship, copyright 1991,
National Council on Economic Education, New York, NY. All rights reserved.
For more information visit www.ncee.net or call 1-800-338-1192.
ACTIVITY 52
Entrepreneurship interview guide
1. Name of entrepreneur
5. Number of employees
Used with permission. Master Curriculum Guide: Economics and Entrepreneurship, copyright 1991,
National Council on Economic Education, New York, NY. All rights reserved.
For more information visit www.ncee.net or call 1-800-338-1192.