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Unit 1 - Instructor
Discussion Guide
PowerPoint
Slides for Unit 1 Discussion Guide
Corresponding slides are in parenthesis with associated discussion
points, denoted "S" for slide and by number.
1. The American System of Business is often described as the
"FREE" or "PRIVATE" enterprise system.
American businesses can make certain decisions “FREE" of government
regulation and they are "PRIVATE" profit-potential businesses.
2. Class exercise – consider: is the system being really free or
private? (have the class think about this)
In their thinking they should consider taxes and laws regulating business,
such as: trade laws, tariffs, and reports necessary that reveal almost all
aspects of a business.
3. What are the four basic principles our business system is based on?
(S 1.1)
a) Freedom of choice
b) Private property rights
c) Profit motives of owner
d) Owner control
4. What are the three basic types of business forms? (S 1.2, 1.3, 1.4)
a) Individually owned
b) Partnership
c) Corporation
5. Corporations are divided into two types. (S 1.4, 1.5)
a) General corporations
1) Investor oriented
b) Cooperative corporations
1) Member owned
6. A hybrid-type business structure has become popular of late,
particularly in agriculture: (S 1.6)
a) It’s a hybrid of a partnership and a
corporation, combining certain characteristics of each.
b) It’s the Limited Liability Company
7. Examine the characteristics of the five business structures with
doing business with respect to the following: (S 1.7)
a) Control
1) Who votes and controls
2) Requirements to be a voter
3) How many votes per voter
b) Ownership
1) How many votes per voter
c) Benefits
1) Why is net income generated
2) What is income tax obligation
8. Examine the profit motives for the ownership of each of the
business forms? (S 1-8)
9. Which business form is most common? Why?
a) Individually
owned
b) Because it is the
oldest, simplest, and most numerous form of business.
Have students fill out handout during guest speaker presentations or
during open class discussion.
Have students take Quiz 1 and then discuss answers.
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