Forms of Business Ownership
This form of business is owned and operated by one person and is the simplest to start.
Sole Proprietorship
This business function focuses on creating or delivering the product or service.
Production/operation
A person who starts, owns, and runs a business.
Entrepreneur
The positive difference between total revenue and total expenses.
Profit
The accounting equation:
Assets = Liabilities + Stockholder Equity/Owner's Equity
This form of business ownership involves two or more owners who share profits and responsibilities.
Partnership
This function of business focuses on promoting and selling products to customers.
Marketing
This term describes the specific group of customers a business aims to serve with its product or service.
Target Market
When expenses are greater than revenue, a business experiences this.
Loss
Anything a business owns that has value.
Asset
This form of business ownership allows a business to operate under an established brand name and business model.
Franchise
This function of business manages money, budgeting, and financial records.
Finance
Money used to start or grow a business is called this.
Capital
The point where total revenue equals total expenses.
Break Even
Money or obligations a business owes to others.
Liabilities
This form of ownership is a separate legal entity from its owners and offers limited liability protection.
Corporation
This business function involves hiring, training, and managing employees.
Human Resources
This type of risk involves the possibility of losing money.
Financial Risk
If a business earns $10,000 in revenue and has $7,500 in expenses, this is the amount of profit or loss?
Profit $2500
A financial statement that shows a business’s revenue, expenses, and profit over a period of time.
Income Statement
This form of business ownership comes with unlimited liability.
Sole Proprietorship
This function ensures a business can efficiently produce goods or services while controlling costs.
Production/operations
This document outlines a business’s goals, target market, and financial projections.
Business Plan
The type of costs that stay the same regardless of how much is produced.
Fixed costs
This financial statement shows what a business owns, what it owes, and the owner’s equity at a specific point in time.
Balance Sheet