Week 3 learning
activity
Learning Activity #1: Forms of Business Ownership
When owners set out to create a business they do so because
they believe they can make money. Not
just money to pay the bills, but money that will support the expenses of
running the business, pay the people employed by the business, and a handsome
profit for themselves. However, if a
business owner is smart they understand there are many things that could happen
to the business that are beyond their control.
Drought, tornedos, regulations, supply problems, are just a few
examples. The government wants to reward
the entrepreneur because as discussed in week one, the economy of a country
depends on people working and spending money.
The government wants to create job and has provided business owners
legal methods that protects society and limits an owner’s exposure to liability
that may come about because of unforeseen events, problems or other issues that
can hinder a person’s desire to own a business.
The legal form of business is one of the main methods government uses to
encourage business ownership.
A business owner must choose from these forms to select the
legal form that best fits the purpose and size of the business as well as the
amount of exposure to liability the owner is willing to take. Fill in the chart below with the pros and
cons of each legal form. Then, give examples of the type and size of company
that might be best suited for the form.
Characteristic
Sole Proprietorship
General Partnership
Limited Liability Partnership
(LLP) /
Limited Partnership
(LP)
LLC
Corporation
Joint Venture
Franchise
Liability Exposure
Tax Exposure
Owners Relationship
Purpose of Form
Example
Learning Activity #2: Entrepreneurship
Complete the following entrepreneurial ability quiz, Quiz:
What’s Your Entrepreneurial I.Q.?. Pay
attention to the questions asked! Then answer the questions
How did you fare on the quiz?
What characteristics does an individual need to make a good
entrepreneur (according to the quiz)?
Knowing what it takes to be entrepreneur do you want to own
a business? Why or why not?
Research the idea of intrapreneurship. Would you want to be an intrapreneur? Why or why not?
Make sure to use the course readings to support your
reasoning.
