Social Studies - 2019-20

CE.12c - Business Ownership & Entrepreneurship

The student will apply social science skills to understand the United States economy by

c) describing the types of business organizations and the role of entrepreneurship;


Adopted: 2015

BIG IDEAS

UNDERSTANDING THE STANDARD

There are three basic ways that businesses organize to earn profits.

Entrepreneurs play an important role in all three types of business organizations


ESSENTIALS

Basic types of business ownership

 Proprietorship: A form of business organization with one owner who takes all the risks and all the profits.

 Partnership: A form of business organization with two or more owners who share the risks and the profits.

 Corporation: A form of business organization that is authorized by law to act as a legal entity regardless of the number of owners. Owners share the profits. Owner liability is limited to the amount of their investment.


Entrepreneur

 A person who takes a risk to produce and sell goods and services in search of profit

 May establish a business according to any of the three types of organizational structures


Entrepreneurs increase competition by bringing new goods and services to market or by delivering products in innovative ways. They often foster technological progress and economic growth.


KEY VOCABULARY

Updated: May 16, 2018