1. 1. Describe a time when you were injured at a
business, or might have been injured.

2. Why are Entrepreneurs important?
2 reasons

3. Risk vs. Reward
 How likely is my business to cause harm?
 Liability
 Responsibility for risks

4. Sole Proprietorship
 Single person
 Good for: low liability, low entry costs
 Benefits: single person has all control and keeps
all profits
 Drawbacks: single person assumes all risk,
 hard to raise capital
 Examples: small construction firms,
artistic firms, bloggers, import/export

5. Partnerships
 Two or more people in business together
 Good for: low liability
 Benefits: low entry costs, shared costs
 Drawbacks: partners assume all risk
 hard to raise capital,
 agreements “like a marriage”
 Examples: law firms, small specialized firms

6. Subway page 218

7. Liability
 If your Sole Proprietorship or
Partnership is sued…
 They can take:
 Your house
 Your car
 Your money in the bank
 Your future money!!!

8. What happens
if?
 New
Restaurant!!!

10. Corporation
 A legal “person”
 Good for: higher liability
 Benefits: owners protected
 easier to raise capital
 Drawbacks: double taxation
 increased regulation
 Examples: restaurants, LLC’s,
Sports Franchises

11. Double taxation
 Corporation pays its own taxes: 25-35%
 Corporation pays employees wages/salary
 Employees ALSO pay taxes: 20-38%
 Trade off is less liability more tax

12. 2 types of Corporations
 Privately held – owned by founders or
owners
 Publicly held – owned by shareholders

13. #2 Page 220, Rank US business
organizations in order of how common
they are.
#3 Rank them in order of revenue
Corporations
Partnerships
Sole Proprietorships

14. Which of the 3 business orgs
would you use to start a…..

15. Which of the 3 business orgs
would you use to start a…..

16. Which of the 3 business orgs
would you use to start a…..

17. Which of the 3 business orgs
would you use to start a…..
Tile setting

18. Which of the 3 business orgs
would you use to start a…..

19. Which of the 3 business orgs
would you use to start a…..

20. Which of the 3 business orgs
would you use to start a…..

21. Business Org Closure Pages 220-223
5. Explain how double taxation works.
7. Which business organization should you use to
open a restaurant? & why?
8. Which business organization should you use to
open a computer tech company? & why?

22. Business Org Closure Pages 220-223
4. How hard would it be to file articles of incorporation
in the state of Arizona?
5. Explain how double taxation works.
6. Compare and contrast the advantages of owning a
franchise like a Subway. 3 for each
7. Which business organization should you use to
open a restaurant? & why?
8. Which business organization should you use to
open a computer tech company? & why?

23. Business Org Closure Pages 220-223
5. How hard would it be to file articles of incorporation
in the state of Arizona?
6. What is the difference between common and
preferred stock?
7. Explain how double taxation works.
8. What would you have to do if you wanted to open a
Subway franchise?
9. Compare and contrast the advantages of owning a
franchise like a Subway. 3 for each
10. Which business organization should you use to
open a restaurant? & why?
11. Which business organization should you use to
open a computer tech company? & why?
QE. Find an entrepreneur in the book who you could admire and
explain what you could learn from them. (list on page “x”)