How Businesses Are Organized


Civics The American Economy How Businesses Are Organized
Students identify the differences between sole proprietorships and partnerships. Then, students describe the pros and cons of corporations. Finally, students analyze the four types of business responsibility—economic, legal, ethical, and philanthropic—and evaluate the ethical or philanthropic activity of a local business.

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Overview

In this experience, students identify the differences between sole proprietorships and partnerships. Then, students describe the pros and cons of corporations. Finally, students analyze four types of business responsibility—economic, legal, ethical, and philanthropic—and evaluate the ethical or philanthropic activity of a local business.

Objectives

  • Identify different business structures.
  • Describe the responsibilities of a business.


Engage


woman hanging a “Welcome, Open” sign on a café door

Do you know someone who is a business owner? Maybe you even have your own small business doing odd jobs, such as dog walking, organizing birthday parties, or tutoring. Businesses come in many sizes—from a single person to huge corporations like Wal-Mart, which has over two million employees. In this lesson you will learn how businesses are organized.

Objectives

  • Identify different business structures.
  • Describe the responsibilities of a business.


First let’s define a business. Try to use what you know to write a definition.



Dictionaries vary in how they define a business:

  • commercial enterprise or establishment
  • an activity engaged in a means of making a living
  • an organization that buys or sells products or services for money
Ask students: Do all businesses aim to make money? Non-profit organizations sometimes run businesses with social and community goals, such as a resale shop or a community coffeehouse.


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The Complete List of Learning Experiences in The American Economy Unit.
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