Unit 2: Entrepreneurship and Legal Forms of Business
In this unit we explore various forms of ownership (sole proprietorship, partnerships, and corporations) which affects how businesses are taxed, how profits are distributed, and what regulations must be followed. The form of ownership you choose corresponds to the growth, taxation, and future of your company. In this unit we examine some techniques business owners use to analyze profitability. We review the characteristics of successful entrepreneurs, how small businesses impact the economy, and the role of the Small Business Administration in the United States.
Completing this unit should take you approximately 10 hours.
2.1: Legal Forms of Business
2.1.1: Sole Proprietorship
2.1.2: Partnerships (General and Limited)
2.1.3: Corporations (LLC and Subchapter S)
Activity: Business Structures
2.2: Entrepreneurship and How Small Businesses Impact the Economy
Now that we have an understanding of the forms of business ownership, let’s take a look at the people who start businesses and how the U.S. Small Business Administration can help them be successful.
2.2.1: Qualities of Successful Entrepreneurs
2.2.2: How Small Businesses Impact the Economy
2.2.3: Role of the U.S. Small Business Administration (SBA)
2.3: Analyzing the Potential of a Business to be Profitable
Understanding the different forms of business ownership is only part of the picture. One key piece to being in business is to make a profit, meaning that all expenses can be paid with something left over (that's the profit!). Knowing whether or not the business is making a profit comes from analysis. In their analysis, business owners must understand what their break-even numbers are and how taxes will affect their business. They can use tools such as a business plan to help them with their analysis.
2.3.1: Components of a Business Plan
2.3.2: Breakeven Analysis
2.3.3: The Role of Taxes
Unit 2 Assessment