| A | B |
|---|
| Types of businesses | Sole Proprietorship, Partnership, Corporation |
| Sole Proprietorship | A business that is owned and managed by one individual who recives all the profits and bears all the loses. |
| Benefits: Sole Proprietorship | Ease of starting and going out of buisness. Control over profits and business operations. |
| Benefits: Sole Proprietorship | Pride of owner ship. Lower taxes (pays no corporate income taxes) |
| Costs: Sole Proprietorship | Unlimited liability. Difficulty in raising financial capital. |
| Costs: Sole Proprietorship | Responsible for all loses. Management knowledge may be limited. |
| Partnership | A buisness that is owned and managed by two or more individuals who recive all the profits and bear all the losses. |
| Benefits: Partnership | Easier to raise finantial capitol. Partners may combine managerial skills. |
| Benefits: Partnership | Personal satisfaction. Lower taxes (pays no corporate income taxes) |
| Costs: Partnership | Unlimited liability. Shared profits. |
| Costs: Partnership | Possible conflicts between partners. Possible instability after death of a partner. |
| Corporation | A buisness that is owned by stockholders and has rights and resposibilitys as if it were a person. |
| Benefits: Corporation | Limited liability. Greater finantial capitol. |
| Benefits: Corporation | Unlimited life. Specialized management. |
| Costs: Corporation | Increased taxation (pays corporate income taxes). Difficulty in starting (Each state has its own rules for a corporate charter) |
| Costs: Corporation | May be larger, more bureaucratic than other forms of business. Increased goverment control |
| Wants | Something you can live without |
| Want Examples | Tv-cable, expensive car, eat out, travel, entertainment, cell phone, internet servies, expensive clothes, computer w/ internet, I-pod |
| Needs | Something you can't live without |
| Need Examples | Food, water, shelter, health, clothes, transportation |
| Target Market | A specific group of customers at which a company aims its products and services. |
| Natural Resources | The raw materials supplied by earth |
| Capital Resources | Tools, Machines, Building, and money used to produce goods and services. |
| Human Resources | The health, strength, education, training, and skill that people bring to there jobs. |
