Copyright

Ch 8: Business Organization & Decision Making

About This Chapter

Learn about different ways businesses can be organized, and the advantages and disadvantages of each structure, by watching these engaging video lessons. Find out about the processes used by businesses to make decisions.

Business Organization and Decision Making - Chapter Summary

In this chapter, you will find out exactly what makes a business organization a unique entity and learn about the different business structures prevalent today. You'll be introduced to the sole proprietorship, partnerships, limited liability companies (LLCs), corporations, franchises, and more. Learn what is meant by entrepreneurship and how it is influenced by the economy. At the end of this chapter, you should be able to:

  • Define a business organization
  • Discuss the different types of business structures and their advantages and disadvantages
  • Explain entrepreneurship and how it is influenced by the economy
  • Identify the seven steps of decision making in businesses
  • Explain the principle of rational choice in economics
  • Discuss what is meant by economic profit, and know how to calculate it
  • Distinguish between implicit and explicit costs

These lessons include short, engaging videos that make learning fun. Along with the video lessons, there are self-assessment quizzes and lesson transcripts to deepen your comprehension. You'll be presented with the key terms you need to remember, and you'll find video tags that take you to the exact location in a video that you wish to review. All these lesson components have been developed by instructors who are professionals in their field.

14 Lessons in Chapter 8: Business Organization & Decision Making
Test your knowledge with a 30-question chapter practice test
What Is a Business Organization? - Structure, Types & Examples

1. What Is a Business Organization? - Structure, Types & Examples

A business organization may exist as a variety of entities, with differences in structure and liability. Explore the details of both limited and unlimited liability organizations through examples of each distinct type.

What is a Sole Proprietorship? - Definition, Advantages, Disadvantages & Examples

2. What is a Sole Proprietorship? - Definition, Advantages, Disadvantages & Examples

A sole proprietorship is a small business with one owner. Explore the definition of a sole proprietorship, examine its various advantages and disadvantages, and understand the examples.

The Basics of Partnerships: Types & Examples

3. The Basics of Partnerships: Types & Examples

Partnerships are a common way to organize a business in the United States. Learn about different types and examples of partnerships and their advantages and disadvantages.

The Basics of LLCs: Limited Liability Companies

4. The Basics of LLCs: Limited Liability Companies

A limited liability company, or LLC, is a kind of business association with traits of both corporations and partnerships. They are created when members file articles of organization with the secretary of state. Discover the basic characteristics of an LLC, such as member-managed vs. manager-managed organization, limited liability, and pass-through taxation.

Corporations: Types, Advantages, Disadvantages & Examples

5. Corporations: Types, Advantages, Disadvantages & Examples

A corporation is an organization that is considered as a single business separate entity from its owners. Learn more about the corporate form of organization and its examples, the advantages and disadvantages of corporations, as well as the differences between S-corporations and C-corporations.

Franchises: Opportunities and Challenges

6. Franchises: Opportunities and Challenges

A franchise is a business relationship where a company gives permission to a person or business to use the company's name and business practices to start their own business. Explore the advantages and disadvantages of starting a franchise, as well as the challenges of diversity and globalization in the practice.

The Role of Cooperatives in Business

7. The Role of Cooperatives in Business

In business, a cooperative is an organization owned by the people who are members of the organization. Learn about the role of cooperatives in business, explore the different types, and understand how cooperatives function in the economy and society.

Entrepreneurship & the Economy: Definition & Importance

8. Entrepreneurship & the Economy: Definition & Importance

Many people choose to take the risk to become an entrepreneur. Learn to define entrepreneurship, identify different types of entrepreneurs, and examine its role and importance in the economy. Also explore the factors of production and how entrepreneurship is an engine for growth and innovation.

The Seven Steps of Decision Making

9. The Seven Steps of Decision Making

Effective decision-making is an essential skill for every manager, and it can be broken down into seven steps. Learn about a seven-step process for effective decision-making, from decision identification to review an assessment and everything in between.

Principle of Rational Choice in Economics: Theory & Analysis

10. Principle of Rational Choice in Economics: Theory & Analysis

The principle of rational choice in economics is the idea that people make decisions most beneficial to themselves. Further explore the theory and analysis of the principle of rational choice and analyze a real world example.

Intuitive Decision Making in Business and Management

11. Intuitive Decision Making in Business and Management

Intuitive decision making, or relying on gut instinct, can be helpful in business and management decisions. Learn an example of intuitive decision making, how it is different from rational decision making, and the elements of intuition.

How to Calculate Economic Profit: Definition & Formula

12. How to Calculate Economic Profit: Definition & Formula

Economic profit is the difference between the revenue a company has received from its outputs and the opportunity costs of its inputs. One of the ways a company understands if business decisions are good business decisions is by calculating economic profit. Further explore the definition and learn the formula used to calculate economic profit.

Implicit Costs: Definition & Examples

13. Implicit Costs: Definition & Examples

There are two types of costs that must be considered by a business; explicit costs and implicit costs. Learn more about the definition and examples of implicit costs such as lost profits and benefits without expenditures.

Explicit Costs: Definition & Examples

14. Explicit Costs: Definition & Examples

Explicit costs are the actual costs incurred and payments made by a business that directly affect its profitability. Learn about the definition of explicit costs and explore common examples of this type of cost.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken
More Exams
There are even more practice exams available in Business Organization & Decision Making.

Earning College Credit

Did you know… We have over 220 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Support