1. Exploring the World of Business Chapter 2.1

2. The Environment of Business • In a free enterprise system people are free to produce the goods and services they choose. • Individuals are free to use their money as they wish: spend it, invest it, save it, or donate it. • Business owners must compete in order to continue to operate. • The amount of money earned over and above the amount spent is called profit. • Business that spend more money than they earn operate at a loss.

3. The Need for a Risk-Taker • Entrepreneurs transform ideas for products or services in to real-world businesses. • Motivated self starters willing to take necessary risks to create profitable and useful businesses.

4. Entrepreneurships

5. Types of Business Operations

6. Forms of Business Organization Sole Proprietorship – a business owned by one person.

7. Forms of Business Organization Partnership – a business owned by two or more people.

8. Forms of Business Organization • Corporation – a business that is recognized by law to have a life of its own. • Charter : legal permission that gives a corporation rights and privileges. • Start out as a sole proprietorship or partnership and need to expand. • Shareholders are the legal owners of the operation.