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
Many businesses start out as sole proprietorships. In this lesson, you'll learn what a sole proprietorship is and its advantages and disadvantages. You'll also have a chance to reinforce your knowledge with a short quiz.
2. The Basics of Partnerships: Types & Examples
Partnerships are a common way to organize a business in the United States. In this lesson, you'll learn about different types of business partnerships and their respective advantages and disadvantages. A short quiz follows the lesson.
3. The Basics of LLCs: Limited Liability Companies
The limited liability company is one of the most popular business organizational forms for small and medium-sized businesses. In this lesson, you'll learn about the key characteristics of a limited liability company. A short quiz follows.
4. Corporations: Types, Advantages, Disadvantages & Examples
Corporations are a popular form of business organization for large and small businesses. In this lesson, you'll learn about the advantages and disadvantages of a corporation. You'll also learn about S-corporations and C-corporations.
5. Franchises: Opportunities and Challenges
Franchises offer a way for a person to start a proven business. In this lesson, you'll learn about franchises, including their advantages and disadvantages. You'll also learn about diversity and global challenges in franchising.
6. The Role of Cooperatives in Business
A cooperative is a type of business organization used for a variety of economic and social purposes. In this lesson, you'll learn about cooperatives, their characteristics and the role they serve in the economy. A short quiz follows.
7. Entrepreneurship & the Economy: Definition & Importance
Entrepreneurs fill a vitally important role in market economies. In this lesson, you'll learn about the importance of entrepreneurship, different types of entrepreneurs and how they add value to an economy.
8. Principle of Rational Choice in Economics: Theory & Analysis
Economic theory is based on several important concepts. One of those concepts is that people make choices in their best self-interest. This is known as the Rational Choice Theory. We will explore this concept in more detail in this lesson.
9. Intuitive Decision Making in Business and Management
Managers often rely on patterns and intuition to make quick decisions. Intuitive decision making can be very beneficial in the business world and differs from rational processes in several ways. Learn more about both decision-making tools and find out which process provides the best solutions.
10. How to Calculate Economic Profit: Definition & Formula
Learn what economic profit is and how it's different from standard accounting profit in this lesson. Find out the formula for calculating economic profit and why it's possible to have a positive accounting profit and a negative economic profit.
11. Implicit Costs: Definition & Examples
Not all of the costs a business must consider can be calculated and tracked on a monthly basis. This lesson introduces the concept of implicit costs, including examples and how they differ from explicit costs.
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