1. Glencoe Accounting and Mrs. Nichols

2. Key Terms  Free enterprise  Profit  Loss  Entrepreneur  Capital  Types of business  Service  Merchandising  Manufacturing  Types of Businesses  Sole proprietorship  Partnership  LLC  Corporation  S. Corp

3. Big business logos! Can you think of some local businesses? Business

4. Free Enterprise  We are free to produce goods and services.  We can use our money as we see fit  Spend it  Save it  Donate it  Competition is key!

5. Free Enterprise PROFIT Money earned over and above the amount spent to keep the business operatingLOSS Businesses that spend more money than they earn

6. Entrepreneur ProsCons  Be your own boss  You create opportunities to earn money  Decide your own schedule and the hours you work  Choose the people you work with and for  You benefit from your hard work.  Will work long hours  Lose security of steady wages and medical benefits  Market your own products and services  Be motivated and energetic majority of the time  Risk losing money

7. Are you an Entrepreneur?  Speaking  Writing  Marketing  Creative  Mechanical  Risk taker  Accounting knowledge  Self motivated  Self starter  Have a vision  Great energy  Imagination  Computer skills Consider owning your own business … Some skills you may need are

8. Types of Business Operations  Capital – money that investors, banks or business owners supply.  Service Business – provides a needed service for a fee.  Merchandising Business – buys finished products and resells them.  Manufacturing Business – buys raw materials, uses labor and machinery to transform them into finish products.

9. Forms of Businesses Sole proprietorship  Easy to set up  All profits go to owner  Owner has total control  Few regulations to follow Hard to raise money, owner has all the risks. Limited expertise and hard to attract talented employees.

10. Forms of Businesses Partnership  Easy start up  Pooled skills and talents  More money available Risk of partner conflict, shared profits, shared risks

11. Forms of Businesses Corporation  Easier to raise money  Easy to expand  Easy to transfer ownership  Losses limited to investment More costs to start, more complex to organize, more regulations, higher taxes

12. Are you an Entrepreneur  Persistent  Creative  Responsible  Inquisitive  Goal-oriented  Independent  Demanding  Self-confidence  Risk-taking  Restless Rate yourself 5 to 1 5 being most like you, and 1 being least like you.