Chapter 5

•Contingent worker: One who has no explicit or implicit contract for long-term employment.•About 5 percent (6 million) is made up of contingent workers

Business Activities Generating Ideas-A business begins with a new

ideas Raising Capital- Businesses need financial resources

to operate Employing and Training Personnel-Businesses need

human resources. Buying Goods and Service: Marketing Goods and Services Maintain Business Records

Type of Business

Producers Intermediaries Service Businesses

Business Ownership

•Partnership-Business owned and controlled by two or more people who have entered into a written agreement

•Corporation-separate legal entity formed by documents filed with your state

•Proprietorship: Business owned and run by just one person

Business Ownership pt2

•Partnership agreement-written agreement among all owners

•Articles of incorporation: Is written legal document that defines ownership and operating procedures and conditions for the business.

•Franchise: written contract granting permission to operate a business to sell products and services in a set way

Mission statement

•specific written statement of the reason a business exists and what it wants to achieve

•Goals: Precise statement of results the business expects to achieve•Policies: Guidelines used in making consistent decisions

•Procedures- Descriptions of the way work is to be done•Organization chart-is a diagram that shows the structure of an organization