8-1
BUSINESS ORGANIZATION
OBJECTIVES
State the basic vocabulary of business
organizations.
Compute financial responsibility of business
ownership based on ratios and percents.
Slide 1
Key Terms
• capital • corporation
• sole proprietorship • shares of stock
• profit • shareholders
• personally liable • limited liability
• partnership • private corporation
• public corporation
Slide 2
How do businesses start?
• What are common everyday products
that you think sell millions each year?
• In which type of business do you think an
owner’s personal possessions may
potentially be taken in the event of a
lawsuit or a financial crisis?
• If you owned shares of stock in a public
corporation, what would that mean to you
in terms of profit and personal liability?
Slide 3
Example 1
Michelle invests $15,000 in a partnership that has four other partners.
The total investment of all partners is $240,000. What percent of the
business does Michelle own?
Slide 4
Example 1
Michelle invests $15,000 in a partnership that has four other partners.
The total investment of all partners is $240,000. What percent of the
business does Michelle own?
Slide 5
Example 2
The total number of shares of stock in the Bulls Corporation is 650,000.
Mike owns 12% of the shares. How many shares of Bulls Corporation
stock does he own?
Slide 6
Example 2
The total number of shares of stock in the Bulls Corporation is 650,000.
Mike owns 12% of the shares. How many shares of Bulls Corporation
stock does he own?
Slide 7
Example 3
Three partners are investing a total of $900,000 to open a garden and
landscaping store. Their investments are in the ratio 2:3:5. How much
does the partner that invested the least contribute?
Slide 8
Example 3
Three partners are investing a total of $900,000 to open a garden and
landscaping store. Their investments are in the ratio 2:3:5. How much
does the partner that invested the least contribute?
Slide 9