Manufacturing 
Making products to be sold for profit
Business Ownership

Before we can talk about business
ownership we need to define the word
Capital:

Capital – Money, buildings, machinery
and investments that are used to make
products or services
Business Ownership

Sole Proprietorship –
business owned by one
person

Partnership – business
owned by more than one
person

Corporation – large number of people
own a company
Types of production 
Craft or Cottage system – make
products at home and take them to the
marketplace
Mass Production 
Assembly-line method – many people
work together doing different specialized
jobs to produce one product
Modern day assembly line
Who is known for coming up with the
idea of an assembly line?
Henry Ford (early 1900s)
Concepts related to mass
production 
Interchangeable Parts – all parts are made
the same; they can be interchanged
Who was responsible for the concept
of interchangeable parts?
Eli Whitney
What else is Eli Whitney known
for inventing?
Cotton Gin
He was known for many other inventions as well?
Labor Specialization – each
person has a specialized job to
do
Time and motion
analysis - studies are
done to reduce wasteful
practices
Some Vocabulary:

Industry – Businesses that produce
goods
or
services
Goods – Products that are made
Services – Work performed to
improve goods or benefit people
Labor – human workers
Free Enterprise – A political
system that allows business to
flourish with as little government
control as possible
Entrepreneur –
Organizer of an
enterprise. Takes
advantage of new
opportunities
Monopoly – Business which is the
only producer of a good or service;
one which has no competition
Efficiency – Getting the most out
of what was put in
Assembly – Fitting together of
parts to produce manufactured
goods
Natural Resources – Items taken
from the earth, sea or air.
Examples: oil, iron ore, cotton,
wood, fruits, natural gas, oxygen
Durable Goods – Products that
usually last at least three years.
Examples: furniture, refrigerators,
automobiles, bikes etc
Nondurable Goods – Products
that usually last fewer than three
years. Examples: clothing, food,
toothpaste etc
Middle school romances
Now take the practice Quiz:
www.quia.com/quiz/593377.html