Economics: Today and Tomorrow © 2008

Chapter 8: Business Organizations

Chapter Overviews

Section 1: Starting a Business
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. There are four basic elements of business operation: expenses, advertising, record keeping, and risk.

Section 2: Sole Proprietorships and Partnerships
Choosing the type of business organization is one of the decisions that entrepreneurs must make. Detailed descriptions are given about the characteristics, advantages, and disadvantages of sole proprietorships and partnerships.

Section 3: The Corporate World and Franchises
A corporation is an organization owned by many people but treated by law as though it were a person. A franchise is an arrangement in which a person or group obtains the right to use the name and sell the products of another business. Various advantages and disadvantages impact the avenue people choose take.