Economics Today and Tomorrow

Chapter 8: Business Organizations

Chapter Overviews

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.

Getting Started
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, and risk.

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 organizations—sole proprietorships, partnerships, and corporations—are 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.