2. Manufacturing - Making products to be sold for profit

3. Business Ownership Before we can talk about business ownership we need to define the word Capital: Capital – Money, buildings, machinery and investments that are used to make products or services

4. Business Ownership Sole Proprietorship – business owned by one person Partnership – business owned by more than one person Corporation – large number of people own a company

5. Types of production - Craft or Cottage system – make products at home and take them to the marketplace

6. Mass Production - Assembly-line method – many people work together doing different specialized jobs to produce one product

7. Modern day assembly line

8. Who is known for coming up with the idea of an assembly line? Henry Ford (early 1900s)

9. Concepts related to mass production - Interchangeable Parts – all parts are made the same; they can be interchanged

10. Who was responsible for the concept of interchangeable parts? Eli Whitney What else is Eli Whitney known for inventing?

11. Cotton Gin He was known for many other inventions as well?

12. Labor Specialization – each person has a specialized job to do Time and motion analysis - studies are done to reduce wasteful practices

13. Some Vocabulary: Industry – Businesses that produce goods or services

14. Goods – Products that are made

15. Services – Work performed to improve goods or benefit people

16. Labor – human workers

17. Free Enterprise – A political system that allows business to flourish with as little government control as possible

18. Entrepreneur – Organizer of an enterprise. Takes advantage of new opportunities

19. Monopoly – Business which is the only producer of a good or service; one which has no competition

20. Efficiency – Getting the most out of what was put in

21. Assembly – Fitting together of parts to produce manufactured goods

22. Natural Resources – Items taken from the earth, sea or air. Examples: oil, iron ore, cotton, wood, fruits, natural gas, oxygen

23. Durable Goods – Products that usually last at least three years. Examples: furniture, refrigerators, automobiles, bikes etc

24. Nondurable Goods – Products that usually last fewer than three years. Examples: clothing, food, toothpaste etc Middle school romances

25. Now take the practice Quiz: www.quia.com/quiz/593377.html www.quia.com/quiz/593377.html