Business Structures and Terminology

Entrepreneur
- An individual who starts and runs their own business, taking on financial risks in hopes of earning a profit.
Intrapreneur
- An employee within a company who uses entrepreneurial skills to innovate and drive new projects or ideas, supported by the organization.
Freelancer
- An independent contractor who provides services to multiple clients on a per-project basis, without long-term commitments.
Human Capital
- Refers to the skills, knowledge, and experience possessed by an individual.
Proprietorship
- The state or right of owning a business or holding property.
Liability
- The state of being legally responsible for something.
Globalization
- The process by which people and economies around the world are becoming increasingly interconnected.
Certification
- Official recognition that a person is qualified in their field.
Labor Force
- The portion of the population that has paid work or is seeking work.
Offshoring
- Relocating work and jobs to another country.
Outsourcing
- A business practice where work that was once done within a company is sent to outside contractors.
Chief Executive Officer (CEO)
- The highest-ranking person in charge of managing a corporation.
Corporation
- A business owned by shareholders who have limited liability for the firm’s debt.

General Partnership
- All partners share management and full liability.
Limited Partnership
- Some partners only invest money, don’t manage, and have limited liability.
Limited Liability Partnership
- All partners manage the business with limited liability; no one is personally responsible for business debts.

Strengths:
- Easy to form
- No special business taxes
- Shared decision-making
- Easier to raise money than sole proprietorship
Weaknesses:
- Sole Proprietorship:
- Unlimited liability (owner fully responsible)
- Hardest to raise capital (only owner's money)
- Business ends if owner dies
- Partnership:
- Shared liability (partners responsible for each other's debts)
- Disagreements can arise
- Business can end if a partner leaves or dies
- Corporation:
- Limited liability (owners not personally responsible)
- Easiest to raise capital but expensive to set up
- More rules to follow and less personal control

Options:
- Sole Proprietorship:
- Cheap to start, full control, simple setup
- Disadvantages: hard to get loans, business ends if owner quits
- Partnership:
- Shares costs and ideas, less pressure
- Disadvantages: disagreements, shared profits
- Corporation:
- Funding from investors, potential to grow
- Disadvantages: expensive, less personal control, profits taxed twice

Options:
- Sole Proprietorship:
- Full control, easy to start
- Disadvantages: hard to raise enough money, big personal financial risk
- Partnership:
- Shares workload, combines skills
- Disadvantages: disagreements, can end if someone quits
- Corporation:
- Easier to get funding, personal assets protected
- Disadvantages: expensive, more government regulations

Sole Proprietorship has unlimited liability and is hardest to raise capital.
In a General Partnership, all partners share management and liability.
A corporation raises capital more easily than other business models.
A weakness of partnerships is that one partner may be liable for another’s actions.
A limited partner typically only invests money and has limited liability.

Formal Education:
- High school, college, trade school, certifications, professional courses
- Structured programs to build knowledge and credentials.
Informal Education:
- Reading, self-study, mentorship, learning through experience
- Important for developing skills and knowledge.
Work Experience:
- Part-time jobs, volunteer work, internships
- Demonstrates skill application in real situations.
Types of Skills:
- Technical Skills: measurable skills specific to jobs (e.g., programming).
- Soft Skills: interpersonal skills such as communication, teamwork, time management.