ECN 204 Study Guide - Human Capital, Aspirin, Sole Proprietorship
23 Apr 2014
School
Department
Course
Professor
Document Summary
Chapter #3 financing and organizing a new venture. An entrepreneur is usually unable to perform all business functions by himself/herself. If more than one person is involved in an enterprise, this constitutes an organization: a social group which distributes tasks for a collective goal. Organizations operate according to known principles (take an organization theory class) This lecture is about setting up a new business organization. Corporations: c corporations, s (or subchapter s) corporations. Phil young, founder of the pedal pushers company, has developed several prototypes of a pedal replacement for children"s bicycles. The pedal pusher will replace existing bicycle pedals with an easy release stirrup to help smaller children hold their feet on the pedals. The pedal pusher will glow in the dark and will provide a musical sound as the bicycle is pedaled. Solution: capital intensity of production: low, required investment: not much. If phil wants easy set up: sole proprietorship. If phil wants to limit liability: s corporation.
