Business Ownership and Entrepreneurship

Sole Proprietor

Company that’s established with one owner.

Partnership

Company that’s structured with two or more owners.

Coporation

A legal entity separates from owners, who aren’t liable for the entity’s debts.

Franchise

An agreement entered by an individual or a company to sell goods or services of the franchise.

Merger

Combining two or more businesses into one company.

Acquisition

When a company purchases another business to increase profits.

Business Plan

A formal written statement that details what a business will do

Entrepreneurs

individuals who establish new businesses.

Angel Investors

An individual or a group of investors who provide financing to a startup.

Equity

A form of business financing

Authority

Having legitimate power

Decentralization

Assigning responsibility and authority to others.

Division of Labor

Dividing the work among employees/groups

Organization

The order and design of relationships

Reengineering

A complete redesign of the business structure

Span of Control

The number of employees a manager supervises

Work Groups

Groups that share resources and coordinate efforts