Lesson 1

• A business is an activity that is a part of human society: it is an entity in which economic resources or inputs, such as materials and labors, are put together and processed to provide goods or services or outputs to customers.
• *Types of Business*

  Service Businesses

  ●deliver intangible products.

  ●offer professional skills, expertise, skilled labor, and other essential assistance.
• *Types of Business*

  Merchandising Businesses

  ●deliver tangible products

  ●resell items for a profit
• *Types of Business*

  Manufacturing Businesses

  ●mass produce tangible commodities delivered to wholesalers and retailers
• *Forms of Business Organizations*

  Sole Proprietorship

  ●Owned and managed by a single individual

  ●Complete legal liability of the owner who has unlimited power over the business.
• *Forms of Business Organizations*

  Partnership

  ●voluntary association of two or more people as partners;

  ●refers to an arrangement in which the individuals share the profits or losses of a business entity
• *Types of Partnership*

  General partners

  Participation- directly involved in management operations

  Liability- legally liable for business debts
• *Types of Partnership*

  Limited partners

  Participation- not involved/have minimal control over operations

  Liability- protected from company debts but liable for investments
• *Types of Partnership*

  Limited Liability Partnership

  Liability- only be legally liable for the operations they directly handle
• *Forms of Business Organizations*

  Corporation

  ●It is an entity created by law that is separate and distinct from its owners.