Week 5 Friday October 5 2007

Start by answering the following questions and hand them in.  

Wall Street Questions:

1. What is the stock market?  Briefly outline how it works.
2. What is insider trading and why is it illegal?
3.  What is Limited Liability mean?
3. Create a list and EXPLAIN some of the pros and cons of having the idea of publicly traded companies (and therefor the stock market)
[think of the benefits/negatives to the shareholders, the workers, towns, cities etc]


Next:  You are going to start creating the plans for a business.  Each student will need to come up with a business idea and create a business plan.  You will be using this business idea for the rest of the semester, so choose wisely.  

Criteria:  You have just inherited $150,000 to start your business.  In your plans, you could start a business that requires more capital but you'll need to account for it (loans, financing, partners etc)

Step 1:

Create a point form Pro and Con list for the following business types (for you)

Sole proprietorship
Partnership
Private corporation
Franchise

Step 2: Decide which type of business you would like to start and create a brainstorm of the business you will start.  (if you can't decide today, you can think about it over the long weekend)

Next: Read "Full Service Management" on pg 23 and answer question 1-4

HOMEWORK: If you didn't finish in class Finish the above work for homework