Chapter Summaries with Key Terms and Academic Vocabulary

Chapter 4: Entrepreneurship

Section 4.1 Summary
An entrepreneur organizes and then operates a business. Advantages of entrepreneurship include a chance to be in charge, job satisfaction, and to earn a high income. Disadvantages of entrepreneurship include financial risk, long hours, competition, and no guarantee of success. Entrepreneurs are decisive and self-motivated, and they see opportunities around them.

Section 4.2 Summary
You can become a business owner by starting a business, buying an existing business, buying a franchise, or joining a family business. The three legal forms of business ownership are sole proprietorship, partnership, and corporation. Applications to finance businesses require a business plan and a financial plan. Factors that affect business success include financing, location, competition, and management.

Key Terms
entrepreneur
start-up costs
lease
goodwill
market outlook
franchise
sole proprietorship
partnership
corporation
operating expenses
income statement
revenue
gross profit
net profit

Academic Vocabulary
enterprise
trait
proprietor