CH 5
CH 5
SLIDE 1
CHAPTER
5 BUSINESS
ORGANIZATION
BUSINESS ACTIVITIES
● Generating ideas
● Raising capital
● Employing and training personnel
● Buying goods and services
● Marketing goods and services
● Maintaining business records
TYPES OF BUSINESSES
Forms of Ownership
U.S. Business Comparison by Form of Ownership
Form of Number of Total Revenue Percent of All Percent of
Ownership Businesses (Thousands) Businesses Total Revenue
(2006)
Proprietorship 22,075,000 1,278,000,000 71.53% 4.06%
Corporation 5,841,000 26,070,000,000 18.93% 82.82%
Partnership 2,947,000 4,131,000,000 9.55% 13.12%
Total 30,863,000 31,479,000,000 100.00% 100.00%
Checkpoint
Checkpoint
KEY TERMS
● Mission Statement- a written objective of
the company’s goals and vision
● Goal- the objective, what are you wanting
to accomplish
● Policies- rules of the business
● Procedures- methods of activities that
support the mission statement and goals.
● Organization chart- chain of command
chart, who is in charge of who and what
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e
CHAPTER 5
BUSINESS ORGANIZATION SLIDE 12
CHART
Page 2A & 2B
(ONLINE RESEARCH)
CORPORATION RESEARCH