Chapter 8: Business Organizations
People decide to start a business to gain profits, to "do
something on their own," or to be their own boss. When individuals
decide to take a risk and start a business, their success
is greatly influenced by the amount of research and planning
they do before they begin producing their goods or services.
Beginning with how to start a business and where to get help,
this chapter discusses the elements of business operation.
Every business faces expenses, advertising costs, record keeping,
What Type of Organization?
Choosing the type of business organization is one of the decisions
that entrepreneurs must make. The three major types of business
organizationssole proprietorships, partnerships, and corporationsare
the focus of Chapter 8. Detailed are the characteristics,
advantages, and disadvantages of sole proprietorships and
partnerships. Additionally, the structure of a corporation
is discussed as well as the advantages and disadvantages of
this type of business organization. Terms explained in the
chapter include entrepreneur, startup, liability, franchise,
and common and preferred stock.