1.  A baby octopus is about the size of a flea at birth.  More than 90% of shark attack victims survive.  Nearly 22,000 checks will be deducted from the wrong account over the next hour.  Turkey’s often look up at the sky during a rainstorm. Unfortunately some have been known to drown as a result.

4.  Manufacturer: takes materials and builds goods it can sell to others › Industrial goods: goods sold to other manufacturing businesses › Consumer goods: products bought by the public  Wholesaler: Buys goods in large quantities and resells them to smaller retailers  Don’t generally sell to the public but may have warehouses or outlets

5.  Retailers: Buys goods from a wholesaler and sells them directly to consumers  Service Business: Provides services to customers for a fee  Special Businesses: Businesses that do not fall into the other four categories › Farming, mining

7.  Limited liability: liability that does not exceed the amount invested  Unlimited liability: Not capped at a maximum amount and exists regardless of the amount of investment › If the business is unable to meet any financial obligations or settle any outstanding liabilities, the owner's personal assets can be seized to satisfy the debts  Dividend: The amount of a corporation’s after- tax earnings that it pays to its shareholders

8.  A business that is owned by a single individual › Owner collects all profit from the business › Owner has unlimited liability for debt › Sole decision maker, responsible for all taxes, responsible to raise money for startup

9.  At least two individuals share the management, profit, and liability  General partnership: all have unlimited liability  Limited partnership: one partner has limited liability, others are investors only (no say)

10.  A company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.  Owners are shareholders (stockholders)  Unit of ownership is a share of stock  Shares are sold to raise money to operate the business  Everyone who owns a share is an owner  May have a Board of Directors

11.  Corporate Charter : A written document filed with a U.S. state by the founders of a corporation  Details a company’s objectives, its structure and its planned operations  If approved by the state government, the company becomes a legal corporation

12.  C Corporation: Company earnings are taxed, distributed to shareholders, and subject to being taxed again  S Corporation: Earnings are passed directly to shareholders- subject to individual tax  LLCs: Allow for limited liability, don’t have to comply to public corporation requirements

13.  Corporations that are exempted from paying taxes as long as they are pursuing certain objectives and retain all profits  Example: Churches, Hospitals

14.  A corporation that conducts business in at least two different industries › Revenue comes from both industries so the company can withstand problems in one industry

15.  A spin-off is the creation of an independent company through the sale or distribution of new shares of an existing business or division of a parent company  Businesses wishing to streamline their operations often sell less productive or unrelated subsidiary businesses as spinoffs › For example, a company might spin off one of its mature business units that is experiencing little or no growth so it can focus on a product or service with higher growth prospects  The spun-off companies are expected to be worth more as independent entities than as parts of a larger business

16.  Owned, controlled, and operated for the mutual benefit of its members  Earnings are shared with the membership as dividends › Example: Farmers form cooperatives to sell crops and buy farming equipment

17.  A party (franchisee) gains access to a business's (the franchisor) proprietary knowledge, processes, and trademarks in order to sell a product or provide a service under the business's name

19. Sole Proprietorship PartnershipCorporationConglomerateCooperativeFranchise Advantages Disadvantages

20.  Client 1: Elise MacMillan and her brother Evan co-founded The Chocolate Farm in Englewood, Colorado, in the late 1990s.

21.  Client 2: Milton Hershey broke ground for his chocolate factory near Lancaster, PA in 1903. It was the beginning of what would become Hershey Foods Corporation.

22.  Client 3: Forest Mars invited Bruce Murrie, an investment banker and son of the Hershey company president, to be his partner in M&M Ltd. The M&Ms we still eat today were first sold to the public in 1941. The letters in "M&M" stand for Mars & Murrie. Eventually, Murrie left the business but Forest Mars became the owner of Mars, Inc.

23. Client 4: Wally Amos launched the Famous Amos Cookie Company in a Hollywood, CA storefront on Sunset Boulevard in 1975.