1. Miss Smith 7 th grade Civics *pgs. 460-464

2.  A small business owned by one person ProsCons You’re your own boss You decide the business hours You take all the profits Must have or borrow $$ to get a building/office space/equipment Must have $$ to pay employees Responsible for taxes Risk failure and debt

3.  A business in which two or more people share the responsibilities, costs, profits, and losses

4.  A type of business that is recognized as a separate legal entity from the people who own it  A permanent organization (unlike proprietorships and partnerships)

5. Raising Money  Selling stock (or shares of ownership)  The people who buys corporate stocks are stockholders  Dividends are stockholders’ share of the profits

6. Rights to Operate  Certain laws must be followed to incorporate a business  Incorporation allows a company to sell stocks

7. Elected Directors  Corporations must have meetings where stockholders can:  Elect a board of directors  Voice their opinions on how the company is structured  The board of directors represents the stockholders when making decisions about the company

8. Choosing Executives  This is done by the board of directors Debt Responsibility  If it goes out of business, to pay off debt, property will be sold

9.  Organizations that provide goods and services without seeking to earn a profit for stockholders  Ex: charities, research associations, educational programs