Handouts

• Chapter 2 Terms Handout 
• Study Guide

Business definitions:

1. Service business: sells a service, such as accounting, lawn maintenance, painting, legal advice, as opposed to selling a product.

2. Proprietorship: a business owned by only one person, or a husband and wife.

   Advantage: full control (owner makes all decisions)

   Disadvantage: full liability (owner’s personal property can be taken to cover debts and lawsuits)

Accounting terms:

1. Accounting is: planning, analyzing, and interpreting financial information. See dictionary.com for more information.
   
   
2. Accounting system: a planned process for providing financial information that will be useful to management (how data will be stored, analyzed and interpreted). Usually computerized software, such as Quicken, Peachtree, SAP, etc. See Wikipedia.com for more information.

3. Accounting records: organized summaries of a business’s financial activities. Usually called “The Books”.

Good accounting can help business make good financial decisions.

When records are not accurate, business may:

• have trouble getting financing and/or investors
• final inaccurate reports with the IRS or investors
• end up in failure and/or bankruptcy.

4. Financial Statements: Printed records of a company's financial transactions and condition. (Book definition: Financial reports that summarize the financial condition and operations of a business. p6)

OnlineResources

• Free Enterprise definition and video (1:42) at Investopedia
• The Promise of Free Enterprise at Youtube (4:07)
• What in an Entrepreneur? video at Youtube (1:55) 
• 50 Entrepreneurs share priceless advice at Youtube (18:39)
• Entrepreneurship 101: Pros and Cons of Starting a Business for Recent College Grads at genhp.com
• The Best and Worst Things About Being an Entrepreneur video at Youtube (2:01)
• Benefits of Incorporating article and video (2:02) at incorporate.com