BUSINESS OWNERSHIP ACCOUNTING LESSON PLAN
ONLINE FINANCIAL BASICS CORE HIGH SCHOOL BUSINESS
TEACHING LEARNING FORMAT SAMPLE EXAMPLE HELP
FORMAL WORK CAREERS SAMPLE STUDENTS FREE PRACTICE TEACHER BUSINESS
BOOKKEEPING LIFE SKILLS
learn about financial accounting concepts.
Concept: Introduce students to the major forms of business ownership and the advantages and disadvantages of each.
Discuss a Proprietorship: How is it formed? What are the advantages and disadvantages?
Have students suggest which businesses, or types of businesses, are likely to be Proprietorships. Examples, small shops, butchers, home businesses, independent outlets….
Discuss Partnerships. How are they formed? What are the advantages and disadvantages?
Talk about the fact that partnerships are common in professions - lawyers, accountants, architects, surveyors, estate agents, vets, etc.
What are the implications of not having a Partnership agreement?
Use a scenario to illustrate personal liability:
Suppose you form a partnership with two other people. What if one of your partners fires an employee who then sues the partnership for wrongful discharge? And what if the jury returns a verdict for $100,000 for the employee? You and your two partners will each be personally responsible for paying the full $100,000. To satisfy the six-figure verdict, the fired employee can go after your personal assets as well as partnership assets. Your home, your personal bank accounts and your car are all at risk.
Discuss Corporations: How are they formed? What are the advantages and disadvantages?
Solidify the concept that a corporation is a separate entity
Talk about shareholders and the buying of stock
Talk about the Board of Directors and the relationship to company management
Using examples from the Yellow Pages, ask students to think about how these businesses are owned, how they are run and how financing was raised (this can be done in the groups or as a class). Discuss responses to ensure students understand the rational for each choice.