1. Good Afternoon!
17.1 The Economic System at Work
Lesson 2: Budgeting: Learning How to manage your Money
Thursday, September 12th, 2019
Agenda for the Day:
First, grab your blue Civics
books, and open to page 460.
We’re going to be discussing
lesson 17.2, then reading the
section and completing the
accompanying worksheet, which
will be due on Tuesday, 9/17.
Then, I want you to work
independently on completing
lesson 2, on budgeting—
learning how to manage your
money. This requires using the
chromebook, to read the linked
article and take notes. This is
also due this coming Tuesday.
Then, we will begin Lesson 3, on
“Growing Your Wealth,” in the
last third of class today.
2. CIVICS IN PRACTICE
HOLT
HOLT, RINEHART AND WINSTON‹#›
The Main Idea
American businesses may be organized as sole
proprietorships, partnerships, corporations, or
nonprofit organizations.
Reading Focus
What are the different types of business
organizations?
How do corporations function?
What is a nonprofit organization?
Section 2: Business Organizations
3. CIVICS IN PRACTICE
HOLT
HOLT, RINEHART AND WINSTON‹#›
Different types of business organizations:
Sole proprietorships—small businesses owned by one
person; owners keep all profits but supply capital,
hire help, and pay taxes; solely responsible for losses
Partnerships—two or more people share
responsibilities, costs, profits, and losses; often more
successful than sole proprietorships
Corporations—permanent organizations; most
common form for large companies
Section 2: Business Organizations
4. CIVICS IN PRACTICE
HOLT
HOLT, RINEHART AND WINSTON‹#›
Features of a Corporation
Raise money by selling stocks
Shareholders receive a portion of the profits in relation
to their holdings.
States issue charters of incorporation, and corporation
obeys regulations.
Stockholders elect directors and vote on changes.
Board of directors selects corporate officers.
No one is responsible for a corporation’s debt if it fails.
Section 2: Business Organizations
5. CIVICS IN PRACTICE
HOLT
HOLT, RINEHART AND WINSTON‹#›
Differences between preferred stock
and common stock:
Preferred stock—less risky; dividends guaranteed if
company is profitable; stockholders do not usually
vote in company’s affairs
Common stock—more risky; dividends only when
company is very profitable; benefits include
possibility of higher dividends, increased stock
value, and voting on company’s affairs
Section 2: Business Organizations
6. CIVICS IN PRACTICE
HOLT
HOLT, RINEHART AND WINSTON‹#›
Question: What are the five most important
features of a corporation?
SECTION 2
raising
money
electing directors choosing
executives
securing the rights to
operate
The Most Important Features of a
Corporation
meeting debt
responsibilities
