Materials

• Class notes

Instructional Activities

1. Ask students to share the results of the exercise during the previous session.
   
   
2. Ask if any students considered getting their money from other people. Explain that often entrepreneurs elect to share the risk of producing a product or service by acquiring partners or accepting shareowners. Display the following types of profit-seeking business structures:
   • Proprietorship: A form of business organization with one owner who take all the risks and all the profits.
   • Partnership: A form of business organization with two or more owners who share the risks and the profits
   • Corporation: a form of business organization that is authorized by law to act as a legal person regardless of the number of owners. In a corporation, owners share in the profit and limit their liability to the amount of their investment.
   
   
3. Ask students to recall the previous exercise and share which of the types of business structures they designed. Discuss with the students the benefits and disadvantages of each of these business structures. Ask them to consider which one they would want to be involved in, and ask why they choose that particular business type.