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Business Firm by Mind Map: Business Firm

1. an organization that uses resources to produce goods and services, which are sold to consumers, other business firms, and the government

2. Sole Proprietorship: owned by 1 individual "self-employed"

2.1. makes all the business decisions

2.2. receives all profits

2.3. takes all loses and risks

2.4. legally responsible for the debts

2.5. i.e. making your own soap and selling it

3. Partnership: a business that is owned by two co-workers

3.1. legally responsible for debts

3.2. share the profits of the business

3.3. i.e. law offices, medical practices

4. Corporation: legal entities that conduct business in their own name

4.1. they are not tied to one or even a select few individuals

4.2. owned by the stickholders

4.3. many individuals own the corporation as a whole, investing their own money, while also earning a profit

4.4. also incurring a loss

4.5. i.e. In-N-Out

5. Cooperative: an independent group of buyers and sellers with a common goal & purpose who voluntarily participate in a market for their mutual benefit

5.1. mutual benefit

5.2. i.e. Farmer's Market

6. Franchise: a business firm that pays a corporation for the rights to use its brand, products, and marketing, but operated as its own enterprise for the owner of the franchise