Big Business

Free Enterprise FREE ENTERPRISE is a system in which privately owned companies compete freely

Buddy Valastro and his families bakery Family Owned Business A FAMILY OWNED BUSINESS is a business actively owned and/or managed by more than one member of the same family Buddy Valastro and his families bakery

Positives vs. Negatives of Family Owned Business - Risk is shared among a few Work and play are rarely separated - Ability to run business to your liking Members of the family owned businesses normally put in long hours - Work with a close knit group - Personalized

Entrepreneur An ENTREPRENEUR is someone who organizes, operates, and takes a risk to profit from a business they create. http://www.topbusinessentrepreneurs.com/category/entrepreneurs Walt Disney Bill Gates Steve Jobs Estee Lauder

Partnership A PARTNERSHIP is a form of business between two or more individuals who share management and profits. Thomas Edison and J.P. Morgan and the Vanderbilt’s http://images.businessweek.com/ss/08/11/1121_famous_partnerships/1.htm Wilbur and Orville Wright Sam, Jack, Albert, & Harry Warner Bill Hewlett & David Packard Ben Cohen & Jerry Greenfield

Positives vs. Negatives of Partnerships - Profits must be shared - There is a wider pool of knowledge and skills - Decisions need to be made collaboratively (together) - Risk is shared

Corporation A CORPORATION is a business owned by many investors

Positives vs. Negatives of Corporations - Large pool of capital (money) to build the business - Profit is shared among many - Depersonalized - Risk is shared among many people

Rockefeller’s Standard Oil Monopoly A MONOPOLY is a company that controls all business in a particular industry. Rockefeller’s Standard Oil Current Monopolies?

Positives vs. Negatives of a Monopoly - Limits competition: without competition business has no reason to keep prices low or improve their products - Efficient - Driving force behind economic boom in the late 1800s - Quality of products could decrease - Hurt consumers

Trust A TRUST is a group of corporations run by a single board of directors. “Super Monopoly”

Positives vs. Negatives of Trusts - Controls all aspects of an industry - Eliminated competition - Improved big business organization