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             GOLD’S GYM
             GOLD’S GYM
         Why is location of a business important to the 
            success of that business?
             If difficult to get to, customers may not make the effort
             Not enough parking, customers will not find it convenient
             If business depends on drop-in customers, it should be 
                located where there is high vehicular or pedestrian traffic
             If difficult to enter or exit the business, customers may not 
                return
             If customers must walk from parking lot to get to business, 
                parking lot should be lighted
             Beneficial to have other popular businesses in the area to 
                attract customers
 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning                       LESSON  1-1
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             GOLD’S GYM
             GOLD’S GYM
         What things would you consider when deciding where 
            to locate a business such as Gold’s Gym?
             Lighted parking lot
             Accessibility to major roads 
             Ample parking
             Proximity to public transportation
             Other popular businesses in the area (Kmart in St. Marys)
             Easy entrance/exit
             High vehicular and pedestrian traffic (Coffee Shop)
 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning                       LESSON  1-1
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             Forming & Dissolving a Proprietorship p. 7
             Forming & Dissolving a Proprietorship p. 7
      In groups of 3, complete the following:
     1. Read Business Structures – Forming and Dissolving a 
          Proprietorship
     2. Answer the following questions:
          A. Why do you think more businesses are organized as 
              proprietorships than any other form of business organization?
          B. What kinds of people do you think would be most successful as 
              owners of a proprietorship?
          C. List some advantages of a proprietorship
          D. List some disadvantages of a proprietoship 
 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning                       LESSON  1-1
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                                       Answers
                                       Answers
         A. Why more proprietorships?
          Proprietorships are the easiest way to organize a 
             business.  
          Owner has the authority to totally control every 
             aspect of the business and does not have to get 
             permission from a partner or from stockholders to 
             make major changes, etc.
         B. What kinds of people would be successful?
          Creative, willing to take a risk, self-motivated, good 
             manager of time, enjoys being in charge, not afraid 
             of responsibility, ample knowledge related to the 
             business, good marketing and planning skills
 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning                       LESSON  1-1
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                                       Answers
                                       Answers
         C. Advantages:
          Ease of formation/dissolving, Total control by owner, 
             and profits are not shared
         D. Disadvantages:
          Limited resources, Unlimited liability, Limited 
             expertise, Limited life, Obligation to follow laws of 
             federal, state, and city in which business is formed
 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning                       LESSON  1-1