About This Chapter
Business Types & Decision Making - Chapter Summary
Content in this chapter highlights the differences between various types of business structures, including types of partnerships and the definition of sole proprietorship. The lessons also discuss the key characteristics of LLCs, corporations and franchises along with the associated positives and negatives. You can also review the factors taken into consideration in making business decisions, including the differences between rational decision making and intuitive decision making. After completing this chapter, you should be able to do the following:
- Describe the advantages and disadvantages of having a sole proprietorship
- Compare positives and negatives of general partnerships and LLPs
- Discuss how corporations are organized
- Define franchise, franchisee and franchisor
- List three different types of cooperatives in the U.S.
- Write the formula for calculating economic profit
- Define intuitive decision making
- Explain the difference between implicit and explicit costs
After viewing video lessons, you can easily go back to specific points by using the video tags. Our professional instructors deliver the information in a way that is engaging and easy to comprehend. You can test your knowledge of various business types and decision making factors after lesson review with the available self-assessment quizzes.
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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.
11. 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.
12. Explicit Costs: Definition & Examples
Explicit costs have a direct effect on a business and on the amount of money a business has available. This lesson explains explicit costs and gives two different examples of explicit costs in a business.
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Other chapters within the MTTC Economics (007): Practice & Study Guide course
- Economic Concepts & Terminology
- Impact of Historical Events on the Economy
- Impact of Geography on Economics
- Structure of Local & Federal Governments
- Government & Economic Systems
- Democratic Values & Society
- Government Impact on Economics
- Basics of Measuring the Economy
- Scarcity, Opportunity Cost & Production Possibilities
- Producers & Production in Microeconomics
- Supply, Demand & Market Equilibrium
- Price Determination & Elasticity
- Economic Market Structures
- Understanding Economic Growth and Productivity
- Inflation & Adjustment in Economics
- Unemployment Basics
- Understanding Inflation & Unemployment
- Overview of Aggregate Demand & Supply
- Understanding Macroeconomic Equilibrium
- Scarce Economic Resource Markets Basics
- Fiscal & Monetary Policies
- Contractionary & Expansionary Gaps
- Money & the Market
- The Central Bank & Monetary Policy
- Types of Economic Advantage
- Foreign Exchange & Trade Balance
- Overview of Inflows, Outflows & Restrictions
- International Economic Development
- Consumer Decisions in Economics
- Consumer Protection Laws & Agencies
- Savings & Investments for Personal Finance
- Effective Teaching Strategies
- Instructional Teaching Strategies
- Assessment Strategies for Teachers
- Types of Student Assessments
- Technology Uses in the Classroom
- MTTC Economics Flashcards