Unit 2 Lesson 2

Business Types (Continued)

&

Mergers

Create a Poster About Your Business

• Your logo and business name should feature prominently.

• Include an “information” section, which includes the following:– Nature of the business (What is being produced?)– Amount of start-up money used.– Source of the start-up money.– Partner profit division percentages.– Percent of the business publicly offered.

Do corporations have moral responsibilities?

Structured Academic Controversy

Merger Activity

Mergers

• Horizontal merger: businesses make same/similar product

• Vertical merger: businesses make products at different stages of production of the same good

• Conglomerate: products are not related in any way

It’s a Horizontal Merger

• If:

• Wachovia merges with Wells Fargo

It’s a Vertical Merger

• If:• A lumber mill• &• A baseball bat maker • &• A sporting goods store• Merge together

It’s a conglomerate if:

• An airplane company, television network, bank, & electricity company merged together.

Merger Worksheet

Business Type Quiz

1) Which is the biggest disadvantage of a sole proprietorship?

• A) Price Leadership

• B) Interdependence

• C) Double Taxation

• D) High Personal Liability

2) What is the name for the document that spells out how partners divide their profits &

losses?

• A) Charter

• B) Contract of Terms

• C) Articles of Partnership

• D) Stock Certificate

3) Which business type can generally raise the most financial

capital?

• A) sole proprietorship

• B) small business

• C) partnership

• D) corporation

4) Owners of corporations have:

• A) Unlimited Liability

• B) Limited Liability

• C) the responsibility of managing the corporation.

• D) difficulty transferring ownership.

5) How many times is corporate income taxed?

• A) Corporate income is not taxed.

• B) 1 time

• C) 2 times

• D) 3 times