TEXAS CTE LESSON PLAN

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Lesson Identification and TEKS Addressed

Career Cluster Business Management and Administration

Course Name Principles of Business, Marketing, and Finance

Lesson/Unit Title Forms of Business Ownership

TEKS Student Expectations 130.132. (c) Knowledge and Skills

(2) The student describes the characteristics of business.
(B) The student is expected to differentiate between
goods and services
(D) The student is expected to compare the different
forms of ownership
(5) The student relates to the impact of international
business on the U.S. economy
(A) The student is expected to explain the role of
business in a global society

Basic Direct Teach Lesson

(Includes Special Education Modifications/Accommodations and
one English Language Proficiency Standards (ELPS) Strategy)

• Students will identify types of businesses.

Instructional Objectives
• Students will compare alternative ways to do business.
• Students will describe three major types of businesses.
• Students will discuss the role of business in the U.S.
economy.
• Upon completion of this lesson, the student will describe
and contrast forms of business ownership.
Rationale This lesson is an introduction to the different types of business
ownership. Students will participate in class discussions as well as
independent practice to learn about how the US has changed, what
business activities are completed by all business, and the different
types of businesses.

* Special Education Modifications or Accommodations, if applicable

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 Duration of Lesson Teacher’s Discretion
Word Wall/Key Vocabulary  Partnership – a business owned by two or more persons
(ELPS c1a,c,f; c2b; c3a,b,d; c4c; c5b) who share the risks and rewards
PDAS II(5)  Stock – shares of ownership in a corporation
 Intermediary – business that acts as a go-between
in moving goods from producers to consumers,
such as wholesalers, retailers, and distributors
 Sole proprietorship-a business owned by only one person
 Corporation-a business treated by law as separate from its
owners
 Processors-businesses that change raw goods into more
finished products
 Manufacturers-businesses that make finished products
out of raw processed goods
 Unlimited liability-full legal and financial responsibility for a
business
 Limited liability-financial responsibility of business
owners only for what they invested in a business
 Franchise-a contractual agreement to use the name
and sell the goods or services of an existing
company
 Nonprofit organization-a business whose main purpose
is to provide a service rather than to make a profit
 Cooperative-an organization of businesses
owned and operated by the members, who pool
their resources and share the benefits
 Producer-a business that gathers raw products in their
natural state
 Wholesaler-a type of business that buys goods in
large amounts and resells them to other businesses in
smaller lots
 Retailer-a business that sells goods or services directly to
the public
1. Construction paper
Materials/Specialized
2. Scissors and glue
Equipment Needed
3. Poster board
4. Newspapers
5. Computers for students to complete projects
6. Deck of Businesses Assignment #1
7. Deck of Businesses Assignment #1 Rubric
8. Forms of Business Ownership Poster Assignment #2

* Special Education Modifications or Accommodations, if applicable

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 9. Forms of Business Ownership Poster Assignment #2 Rubric
10. Other Forms of Business Ownership PowerPoint:
Assignment #3
11. Other Forms of Business Ownership PowerPoint:
Assignment #3 Rubric
12. Internet
Anticipatory Set
1. Statistics indicate that students will change jobs 10-14 times
(May include pre-assessment for
before they turn age 38. Ask students to list rapidly growing
prior knowledge)
employment opportunities and jobs that are declining in
numbers.
2. Ask students to list five businesses in their community. Then ask
students to categorize the businesses as producers,
intermediaries, or service businesses
3. Ask students to propose a new sole proprietorship for their
community. What are the risks and benefits associated with
opening this form of business?
4. Divide the class into small groups of two or three students. Each
group has 10 minutes to determine a strategy for the
government to encourage the start-up of more sole
proprietorships.
5. Ask students to describe characteristics of a successful
entrepreneur in the community. Then explain the risks involved
with starting a business (more than 50% of businesses fail within
one year).
I. Business in the U.S. Economy
Direct Instruction *
A. Changing Status of Employment in the U.S. (NOTE:
Explain the changing workforce for an aging
population. Also describe the needs for an aging
population.)
1. New jobs evolve, and old jobs disappear
2. Aging labor pool
3. Minority groups make up a large percentage
of the workforce
B. Roles of Businesses in the U.S. Economy
1. Employment for millions of people
2. Compensate owners and investors
3. Pay taxes to federal, state, and local
governments

* Special Education Modifications or Accommodations, if applicable

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 4. Make and distribute products and services
needed by consumers, government, and
businesses
C. Three Major Categories of Businesses
1. Producers-create products and services
used by individuals and other businesses
(NOTE: Ask students to give examples of
producers. Possible answers may include
farmers and manufacturers are examples of
producers.)
2. Intermediaries-sell goods and services
(NOTE: Ask students to give examples of
intermediaries in the mall.)
3. Service businesses-carries out activities that
are consumed by its customers (NOTE:
Then ask students to give examples of
service businesses that they use. Examples
of service businesses might include Internet
service providers, doctors, dentists, hair
stylists, and lawn care specialists.)
II. Forms of Business Ownership
A. Sole Proprietorships-owned and run by one person
(NOTE: Ask students to list a business that they
would feel comfortable operating as a sole
proprietor. Then ask students to explain why they
are qualified.)
1. For individuals who want to work and make
decisions independently
2. Little government regulation
3. Great risk for the owner
B. Partnership-owned and controlled by two or more
people (NOTE: Ask students to list the risks involved
with partnerships. Explain how partners have
unlimited liability in the partnership.)
1. People who share an idea for a business
2. People who want to cooperate in managing
and investing, and want to share the risks
and rewards of the business
C. Corporation-separate legal entity owned by one or
* Special Education Modifications or Accommodations, if applicable
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 more shareholders and managed by a board of
directors (NOTE: Ask students to list three
corporations that they think are good investment
choices. Then have the students look up the stock
performance for their choices.)
1. More difficult to form
2. Subject to more regulations
3. Limited liability for investors
III. Other Forms of Ownership
A. Limited Liability Partnership (NOTE: Describe how a
limited liability partnership would allow you to begin
a partnership with a noted expert who is only liable
for the amount they invested in the company.)
B. Joint Venture (NOTE: Explain how a joint venture
ends when a project is completed.)
C. S-Corporation
D. Limited Liability Company
E. Nonprofit Corporation
F. Cooperative
G. Franchise (NOTE: Ask students to give examples of
franchises. Fast food, restaurants, hotels, and other
businesses operate as franchises.)

Guided Practice * Two friends want to open a clothing consignment store. Individuals
bring clothing to the consignment store and if the clothes sell, the
consignment shop earns 60% and the customer receives 40% of
the sale. What are the advantages of this type of business over
other retail stores? Explain the advantages and disadvantages of
operating this business as a sole proprietorship and a partnership.
Independent 1. Deck of Businesses Assignment: Ask the class to design a
Practice/Laboratory deck of 54 cards. Eighteen of the cards represent service
Experience/Differentiated businesses, 18 cards should represent producers, and 18
Activities * cards represent intermediary businesses. The deck of cards
will be used to review service businesses, producers, and
intermediary businesses. This assignment will be evaluated
for following directions accurately.
2. Forms of Business Ownership Poster Assignment: Ask
students to find pictures of businesses that are sole
proprietorships, partnerships, and corporations. Then
students will design a poster divided into three sections
representing the three forms of ownership. Each section will
* Special Education Modifications or Accommodations, if applicable
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 include pictures and bulleted items describing the forms of
ownership. The poster will be evaluated using the assigned
rubric.
3. Other Forms of Business Ownership PowerPoint
Assignment: Ask students to design a PowerPoint
presentation that defines a limited liability partnership, joint
venture, S-corporation, limited liability company, nonprofit
corporation, cooperative, and a franchise. Each form of
business ownership must be carefully defined. The
PowerPoint presentation will be evaluated using the assigned
rubric.
Q: How is the U.S. population changing?
Lesson Closure
A: The U.S. population is becoming older. The number of Asian,
Hispanic, and African-
American workers will grow. The number of contingent
workers will grow.
Q: What are six business activities completed by all businesses?
A: Six business activities include generating ideas, raising
capital, employing and training personnel, buying goods
and services, marketing goods and services, and
maintaining business records.
Q: What is one advantage of investing in a corporation?
A: One advantage is limited liability.
Q: What is the size of the workforce for the greatest number of
businesses in the U.S?
A: The greatest number of businesses in the U.S. employ less than
20 people.
Q: Which form of business ownership is the most complex and
difficult to form?
A: The most complex form of business ownership is the
corporation.
Q: What are disadvantages of the partnership form of business?
A: Disadvantages include unlimited liability, uncertain life,
and disputes among the partners.

FORMING A FRANCHISE
Students will explain the process for operating a specific franchise.
Information will be presented in a PowerPoint presentation. The
presentation must give concrete steps to apply for and operate the
franchise. A rubric will be used to evaluate this project.

* Special Education Modifications or Accommodations, if applicable

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 Informal Assessment:
Summative / End of Lesson
1. Instructor will observe students during Independent
Assessment *
Practice.
2. Instructor will assist students as needed.

Assigned Rubrics will be used to assess assignments 2 and 3 for

Independent Practice (LSI Quadrant III). A rubric will also be used
to evaluate the “Forming Franchise” assignment.

Accommodations for Learning Differences: It is important that

lessons accommodate the needs of every learner. These lessons
may be modified to accommodate your students with learning
differences by referring to the files found on the Special
Populations page of this website.

1. Introduction to Business, Fifth Edition, Brown Clow, Glencoe

References/Resources/
McGraw-Hill
Teacher Preparation 2. Intro to Business, Dlabay Burrow Klendl, South-Western
Cengage Learning
3. Online Resources: globaledge.msu.edu,
worldnetdaily.com/news/article
Additional Required Components

English Language Proficiency

Standards (ELPS) Strategies
English
College and Career Readiness
110.42(b)(6)(A) – Vocabulary Development
Connection1
…expand vocabulary through wide reading, listening, and
discussing
110.42(b)(6)(B) – Vocabulary Development
… rely on context to determine meanings of words and
phrases such as figurative language, idioms, multiple
meaning words, and technical vocabulary
110.42(b)(7)(F) – Reading/comprehension
…identify main ideas and their supporting details
110.42(b)(7)(G) – Reading/comprehension
…summarize texts

1
Visit the Texas College and Career Readiness Standards at
http://www.thecb.state.tx.us/collegereadiness/CRS.pdf, Texas Higher Education Coordinating Board
(THECB), 2009.
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 110.42(b)(7)(J) – Reading/comprehension
…read silently with comprehension for a sustained period of time
Mathematical Models with Applications
111.36(c)(1)(A) – Knowledge and Skills
…compare and analyze various methods for solving a real-life
problem.
111.36(c)(1)(B) – Knowledge and Skills
…use multiple approaches (algebraic, graphical, and
geometric methods) to solve problems from a variety of
disciplines
111.36(c)(1)(C) – Knowledge and Skills
…select a method to solve a problem, defend the
method, and justify the reasonableness of the
results
111.36(c)(6)(A) – Knowledge and Skills
…analyze methods of payment available in retail purchases
and compare relative advantages and disadvantages of
each option.
111.36(c)(7)(A) – Knowledge and Skills
…analyze types of savings options involving simple and
compound interest and compare relative advantages of
these options.

Recommended Strategies

Reading Strategies

Quotes
Multimedia/Visual Strategy
Presentation Slides + One
Additional Technology
Connection
Graphic Organizers/Handout

Writing Strategies
Journal Entries + 1 Additional
Writing Strategy

Communication
90 Second Speech Topics

Other Essential Lesson Components

* Special Education Modifications or Accommodations, if applicable
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 Enrichment Activity 1. Students will select three sets of competing corporations and
(e.g., homework assignment) track/record stock prices for three weeks to determine which
corporations have a better performance record.
2. Name That Corporation: Students will compose a one-
page story about a corporation, without referring to the
name of the corporation. The teacher will read the stories
and students will write down which corporations they think
are being described.
3. Students select a popular brand of clothing or athletic apparel.
Students conduct research to determine how and where the
clothing is produced. Students must explain why the clothing
is manufactured in the selected part of the world.

Family/Community Connection

CTSO connection(s) Business Professionals of America

Future Business Leaders of America

Service Learning Projects

Lesson Notes

* Special Education Modifications or Accommodations, if applicable

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