Business in AmericaBusiness in America

Review: Types of BusinessReview: Types of Business

Single-OwnerSingle-Owner When owners are responsible for 100% When owners are responsible for 100%

of debt….of debt…. Two or more ownersTwo or more owners Separate legal entitySeparate legal entity

Shares of the profits are sold as….Shares of the profits are sold as…. When owners are responsible for only When owners are responsible for only

what they put into a business….what they put into a business….

I. Other Business ModelsI. Other Business Models

Cooperative –business owned by members Cooperative –business owned by members for their own benefitfor their own benefit

FranchiseFranchise—part of corporation privately run —part of corporation privately run by individualsby individuals

Monopoly – one firm dominates the marketMonopoly – one firm dominates the market Oligopoly –few firms dominateOligopoly –few firms dominate Conglomerate – two or more unrelated Conglomerate – two or more unrelated

brands operating under one umbrella brands operating under one umbrella companycompany Multinational ConglomerateMultinational Conglomerate

II. YOU-The business II. YOU-The business Got money? Make Got money? Make

InvestmentsInvestments Bank Account-small Bank Account-small

return/safereturn/safe Stocks-risky/possibly big Stocks-risky/possibly big

returnsreturns Pension Fund-retirementPension Fund-retirement Mutual Fund-collective Mutual Fund-collective

investment pool-saferinvestment pool-safer Bond-government credit Bond-government credit

slip-guaranteed slip-guaranteed return/time requirementreturn/time requirement

CD-larger return/time CD-larger return/time requirementrequirement

II. YOU-The business (cont)II. YOU-The business (cont)

Other Other InvestmentsInvestments InsuranceInsurance

LifeLife MedicalMedical ComprehensiveComprehensive LiabilityLiability

II.YOU-the businessII.YOU-the business

Or you can buy something.Or you can buy something. MoneyMoney Credit Cards – Spend money you don’t Credit Cards – Spend money you don’t

have yethave yet Debit Cards – Deducts from your checking Debit Cards – Deducts from your checking

accountaccount Checks – Deducts from your checking Checks – Deducts from your checking

accountaccount

What are some pitfalls?What are some pitfalls?