UNIT I LIVING BUSINESS
Lesson 1: ENTERING BUSINESS Business is an activity that involves manufacturing, purchasing or buying, selling, financing, or providing financial support, and giving services. It aims to obtain profit. Profit is a kind of earning or gain after some investment has been made. An investment refers to the money or materials put down to start a business. Investment can loosely be equated with capital, which is usually in the form of money. Profit can be computed after taking into account whether the capital, as well as other investments, have been returned or regained in the course of operating the business. ď śFORMS OF OWNERSHIP Business enterprises may be classified into three categories: 1. Private business is owned by an individual. 2. Government-owned business falls under government supervision. 3. Business owned by an individual and the government is run by an individual or group of people who shares a percentage of profit to the government. The government finances the business while the individual or group operates or manages it. Ownership in business is the legal relationship between a person and his or her possession. It is very important to identify and analyze an owner’s responsibilities, the terms of his or her profit-sharing, and the pros and cons of the type of ownership he or enjoys. Form of Business Owner/s Advantages Disadvantages Proprietorship one person or family - minimum capital - owner is in direct, and decides on his or her own will - no control of time - difficulty in raising more capital - unlimited things to do, as there are less people to assign to do the tasks. Partnership two person or families - minimum capital, with another source of capital available - two heads - unlimited control of business debt YOUNG JI INTERNATIONAL SCHOOL/COLLEGE
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