| A | B |
|---|
| proprietorship | business with one owner |
| A proprietor... | takes all the risks and profits. |
| partnership | business with two or more owners |
| Partners... | share the risks and profits. |
| corporation | acts as a legal person no matter how many owners |
| Corporate owners... | share the profits. |
| Corporate owner liability... | is limited to investment. |
| entrepreneur | starts a business;takes risk;seeks profits |
| Individual and business saving... | provide financial capital. |
| Households... | own resources used in production. |
| Households use... | income to purchase products. |
| Businesses | buy resources. |
| Businesses make... | products. |
| Governments use tax... | revenue from individuals and businesses. |
| private financial institutions(PFIs) | intermediaries between savers and borrowers |
| PFI's: securities brokerages... | banks, savings and loans, credit unions |
| PFI's receive... | deposits and make loans. |
| PFI's encourage saving... | and investing by paying interest. |
| Entrepreneurs can start... | proprietorships, partnerships, or corporations. |
