1. Role of Business

2. Quick Write
What do you already know about different types of business? What types of business are most popular? What types of business can most people invest in? Explain your answers.

3. Role of Business Entrepreneur- a person who starts a business
Profit- the difference between what it costs a business to produce something and the price the buyer pays for it
Entrepreneurs start businesses because they want to earn a profit.

4. Basic Factors of Production
Labor- Workers provide labor and receive salaries.
Land- Landowners provide land and receive rent.
Capital- Banks provide capital and receive interest.

5. Business Ownership
Sole Proprietorship- when a business is owned by an individual
An advantage of sole proprietorship is that the owner gets to keep all of the profits.
Partnership- type of business in which two or more people share ownership

6. Business Ownership
Corporation- a business that is run separately from the people who own it
Corporations sell shares of ownership called stocks
People who buy the stocks are called stockholders
Corporations sell stock in order to raise large amounts of money
Corporations make up approximately 90% of the total sales in the US