The Free Enterprise System
In the free enterprise system, there are many opportunities to invest or work in many different types of businesses. In order to view those opportunities, it is a good idea to start by classifying businesses. To understand their differences, you will need to know the terminology associated with business classification. Keep in mind that a business may be classified in more than on category. A business can be classified by its size and scope, by its purpose, and by its place within the industry.
Key Terms:
Domestic Business
Global Business
For-Profit Business
Nonprofit Organization
Public Sector
Private Sector
Derived Demand
Wholesalers
Retailers
Production
Management
Finance
Accounting
Objectives:
*Classify types of business
*How to distinguish businesses from each other
*The concept of derived demand
*The basic functions of a business