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;
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
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.
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.