Lesson Plan. Course Title: Marketing Dynamics Session Title: Business Ownership, Lesson 2. Performance Objective:

Transcription

1 Course Title: Marketing Dynamics Session Title: Business Ownership, Lesson 2 Performance Objective: Lesson Plan After completing this lesson, the student will be able to list the types of business ownerships, describe the advantages and disadvantages of each and understand the concept of economic resources. Approximate Time: When taught as written, this lesson should take 5 days to complete. Specific Objectives: The student will list the types of business ownerships. The student will discuss advantages and disadvantages of each type. The student will explain an economic resource. TERMS Sole proprietorship Partnership General Partnership Limited Partnership Corporation Stock Limited Liability Unlimited Liability Franchise Franchisee Franchisor Economic resource 1

2 Preparation TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed (c)(1)(d) describe advantages and disadvantages of various forms of business ownership (c)(1)(e) describe the concept of economic resources Interdisciplinary Correlations: English: (b)(21)(b) organize information gathered from multiple sources to create a variety of graphics and forms (e.g., notes, learning logs) (b)(22)(b) evaluate the relevance of information to the topic and determine the reliability, validity, and accuracy of sources (including Internet sources) by examining their authority and objectivity (b)(23)(c) use graphics and illustrations to help explain concepts where appropriate (b)(23)(d) use a variety of evaluative tools (e.g., self-made rubrics, peer reviews, teacher and expert evaluations) to examine the quality of the research Occupational Correlation (O*Net - General and Operations Manager Similar Job Titles: Operations Manager, General Manager, Business Manager Tasks: Oversee activities directly related to making products or providing services. Direct and coordinate activities of businesses or departments concerned with the production, pricing, sales, or distribution of products. Review financial statements, sales and activity reports, and other performance data to measure productivity and goal achievement and to determine areas needing cost reduction and program improvement. 2

3 Manage staff, preparing work schedules and assigning specific duties. Direct and coordinate organization's financial and budget activities to fund operations, maximize investments, and increase efficiency. Establish and implement departmental policies, goals, objectives, and procedures, conferring with board members, organization officials, and staff members as necessary. Determine staffing requirements, and interview, hire and train new employees, or oversee those personnel processes. Plan and direct activities such as sales promotions, coordinating with other department heads as required. Determine goods and services to be sold, and set prices and credit terms, based on forecasts of customer demand. Locate, select, and procure merchandise for resale, representing management in purchase negotiations. (Soft) Skills: Active Listening, Reading Comprehension, Critical Thinking, Speaking, Coordinating, Active Learning. Teacher Preparation: Teacher will review the terms in the outline, slides and handouts to become familiar with lesson. Teacher should locate and evaluate various resources and websites before the lesson. Teacher will have assignments and website information ready to distribute to students. References: Marketing Essentials, Schneider Farese, Kimbrell, Woloszyk, Glencoe McGraw-Hill Instructional Aids: 1. Display for digital presentation, websites for assignments and class discussion 2. Marketing Essentials, Schneider Farese, Kimbrell, Woloszyk, Glencoe McGraw-Hill 3. Major franchise website (e.g. McDonalds, Subway, Quiznos, etc) go to the franchising section of the website for this lesson. Materials Needed: 1. Printer paper 2. Assignments and website information ready to distribute to students (Business Ownership Project) Direction Sheet 2. Poster Board 3. Internet for students to research types of businesses Equipment Needed: 3

4 1. Computer with digital slideshow program and Internet Access 2. Projector to show internet sites 3. Computers for students to conduct research Learner Preparation: An entrepreneur needs to be aware of all of the business options available when starting a business. This includes the type of business ownership which they may choose. There are advantages and disadvantages to each and choosing wisely can be the difference between having a successful business or losing all of your hard earned money. Ask students which form of business ownership they think is the most prevalent in the United States today. Introduction (LSI Quadrant I): Introduction SHOW: Show students the franchise section of a major retailer on their website. (e.g. McDonalds, Subway, Quiznos, etc) ASK: Ask students if they realized that most of these restaurants were not owned by the parent company. SAY: Explain that individuals can purchase a fast food franchise as a way of getting started in business. ASK: Ask students how much money they think they will need to purchase a fast food franchise? SAY: Explain that some companies require a minimum of $500,000 to purchase a franchise. But that is just one type of business ownership. ASK: Ask students if they think selling items on the internet qualifies as a business? SAY: Explain that an individual can be a sole proprietorship form of business when they buy and sell items on the internet to make a profit. ASK: Ask students if they know what other forms of business ownerships there are? SAY: Explain that many doctors and lawyers are in partnerships and sole proprietorships which are the most prevalent form of business ownership, but corporations are responsible for generating the most revenue in the United States. 4

5 Outline Outline (LSI Quadrant II): Instructors can use the presentation, slides, handouts, and note pages in conjunction with the following outline. MI Outline Notes to Instructor I. Types of business ownership A. Why there are different types of business ownerships. B. Business ownership can change as business grows. Use slides and current events as aid. Choosing the type of business someone enters into and the products or services they are selling can affect which type of business ownership works best. The success or failure of the business can be affected by the type of business ownership they choose to use. II. Sole Proprietorships A. Sole Proprietorship is a business owned and operated by one person. a. Most common form of ownership in the U.S b. Advantages i. Easy to start up ii. Keep all profits iii. Make all decisions yourself iv. Less government regulations c. Disadvantages i. You have to come up with money to start and run business. ii. Unlimited liability (Creditors can take your personal assets) iii. You have to manage all aspects of the business. iv. Business ends when owner dies Use slides as aid. The vast majority of businesses in the U.S. are sole proprietorships. Mostly because of the ease of startup. Any business that is just one person that is not incorporated is considered a sole proprietorship. This could be someone selling computers on the internet or a hot dog vendor selling on the streets of downtown New York, or plumbers or even writers. 5

6 III. Partnerships A. Partnership is a legal agreement between two or more people to be jointly responsible for the success or failure of a business. B. Least common form of business ownership C. Law offices, doctors offices and real estate offices are common partnerships D. Advantages a. Easy to setup b. More than one source of money c. Combines skills of all owners d. Less regulations than corporations E. Disadvantages a. Owners may not always agree b. Actions of one partner are legally binding on all c. All partners share debt d. Business dissolved if one partner dies e. Unlimited liability between all of the partners F. There are two types of partnership a. General partnership is when each partner shares in the profits and losses. Each partner has unlimited liability. b. Limited partnership is when each limited partner is liable for debts only up to the amount of his or her investment. i. There must at least one general partner who has unlimited liability. ii. Must make public notice that one or more partners have limited liability. IV. Corporations A. A Corporation is a business that is chartered by a state and legally operates apart from the owners as a separate legal entity. B. Corporations form boards who hire directors and officers to manage the affairs of the corporation. A. The corporation s value is divided into equal units called shares. Shares are sold to individual investors through the stock market. B. Stockholders actually are the ones who own the corporation. C. Advantages A. Limited liability of company officers and Use slides as aid. Partnerships are still easy to setup but are more complicated than sole proprietorships. It is the least common form of business ownership. Many doctors offices and law firms are setup as limited liability partnerships. Use slides as aid. Corporations are run by the board of directors. These individuals have a responsibility to the stockholders to make wise decisions for the company so it can be profitable. The stockholders each own a piece of the company. The corporation is required to have a stockholders 6

7 stockholders. B. Specialized skill set of managers C. Additional sources of money D. People can easily enter or leave the business V. Franchise A. A franchise is a legal agreement to open a business in the name of a recognized company. a. Franchisee is the person who is purchasing the franchise. b. Franchisor is the person who is owns the recognized company. B. Franchise a. Advantages i. Business already well known ii. Training on how to run business iii. Assistance with advertising and merchandising iv. Day to day guidance on how to be successful b. Disadvantages i. Must follow franchisor guidelines ii. Large amounts of capital to purchase most franchises iii. Percentages of profits go back to franchisor VI. Business Ownership A. Economic resources are the things used in producing goods and services. a. Factors of production i. Land ii. Labor iii. Capital iv. Entrepreneurship b. Business Ownership B. How a business chooses to use their economic resources determines how successful they will be. meeting once a year and stockholders can share their opinions with the board. Each stockholder has a vote in corporate business; one share of stock equals one vote that the stockholder can cast. Use slides as aid. Many chain restaurants are franchises such as hamburger restaurants, pizza restaurants and Mexican restaurants.. These are great opportunities for entrepreneurs who wish to start a business but need additional guidance. As part of the franchise agreement the franchisee is given all of the resources to duplicate the successful business. These include the logos, floor plans, recipes, advertising and marketing being done by the parent company. Use slides as aid. All businesses have the same economic resources available. The natural resources that they use to produce a product or services, the people who are employed by their business and the money that they have 7

8 C. Entrepreneurs are those individuals who have the skills necessary to start businesses and run them successfully. D. Entrepreneurs risk their time and money to start a business. to run their business. Entrepreneurs are those people who are willing to risk their time and money to run a business. These together are known as the factors of production. Verbal Linguistic Logical Mathematical Visual Spatial Musical Rhythmic Bodily Kinesthetic Intrapersonal Interpersonal Naturalist Existentialist Application Guided Practice (LSI Quadrant III): Ask students to brainstorm the names of businesses in their community. Encourage them to think of both small and large businesses, these can include local diners, shoe repair stores or even the ice cream man who roams the neighborhood streets. Once they have a list, have them try to determine which type of business ownership they think the businesses are using. Independent Practice (LSI Quadrant III): Business Ownership Project (team project: 2 students per team) 1. Each team will use both sides of the poster board dividing each side into two sections (two on front and two on back) 2. Students will use each section to create a presentation for each type of ownership. Each section will have the name of the ownership, a picture of that type of business, (can be hand drawn) a definition of the ownership type, the advantages and disadvantages and examples of that ownership type in their community. 3. Students will present their posters to the class. This project will be evaluated using the assigned rubric. 8

9 Summary Review (LSI Quadrants I and IV): Question: What are the different types of business ownerships? Question: Why would an entrepreneur choose a particular type of ownership? Question: What are some advantages of a sole proprietorship? Question: What are some disadvantages of a sole proprietorship? Question: What are some disadvantages of a partnership? Question: What type of business is best suited for a limited partnership? Question: Why would it be wise for some high risk businesses to incorporate? Question: Who actually owns a corporation? Question: What is the role of the board of directors of a corporation? Question: How are the factors of production used? Question: What is the role of entrepreneurs in the business world? Evaluation Informal Assessment (LSI Quadrant III): Instructor should observe the work ethic of individuals involved in class discussions and the independent practice activity. Formal Assessment (LSI Quadrant III, IV): Students will be evaluated on their Business Ownership Project by using the assigned rubric. 9

10 Extension Extension/Enrichment (LSI Quadrant IV): Business Ownership Essay Student Directions You are to choose a business that is operating in your community. You will need to research the business either online or by visiting the business and talking to the business owner. You will need to determine the type of business ownership that they are using. You will write an essay with a brief history of the business, how it got started, who owns it and how long they have been in business. You will discuss the advantages of that type of ownership and the disadvantages that they may face. You will provide recommendations for the business as to if they should change their form of business ownership or keep it the same. You need to give specifics as to why you reached your conclusion. 10

11 Marketing Dynamics Unit 1 Lesson 2 Student Directions Independent Practice (LSI Quadrant III): Business Ownership Project (team project: 2-3 students per team) 1. Each team will use both sides of the poster board dividing each side into two sections (two on front and two on back) 2. Students will use each section to create a presentation for each type of ownership. Each section will have the name of the ownership type, a picture of that type of business (can be hand drawn), a definition of the ownership type, the advantages and disadvantages and examples of that ownership type in their community. 3. Students will present their posters to the class. This project will be evaluated using the assigned rubric. 11

12 Independent Practice (LSI Quadrant III) Business Ownership Project Presentation and Collateral Materials Rubric CATEGORY Presentation Well-rehearsed with smooth delivery that holds audience attention. Rehearsed with fairly smooth delivery that holds audience attention most of the time. Delivery not smooth, but able to maintain interest of the audience most of the time. Delivery not smooth and audience attention often lost. Attractiveness Makes excellent use of font, color, graphics, effects, etc. to enhance the presentation. Makes good use of font, color, graphics, effects, etc. to enhance the presentation. Makes use of font, color, graphics, effects, etc. but occasionally these distract from the presentation content. Use of font, color, graphics, effects etc. but these often distract from the presentation content. Content Covers topic indepth with details and examples. Subject knowledge is excellent. Includes essential knowledge about the topic. Subject knowledge appears to be good. Includes essential information about the topic but there are 1-2 factual errors. Content is minimal OR there are several factual errors. Organization Content is well organized using headings or bulleted lists to group related material. Uses headings or bulleted lists but the overall organization of topics appears flawed. Content is logically organized for the most part. There was no clear or logical organizational structure; just lots of facts. Originality Product shows a large amount of original thought. Ideas are creative and inventive. Product shows some original thought. Work shows new ideas and insights. Uses other people's ideas (giving them credit), but there is little evidence of original thinking. Uses other people's ideas, but does not give them credit. Total Points Earned 12