Company: A company is a legal term for a business. The kind of company tells you how it’s set up, who owns it, and what rules it has to follow.

Entrepreneur: An entrepreneur is someone who takes their ideas and creates a new business. They take on the risks and rewards that come with starting that business.

Can you name two famous entrepreneurs and the companies they started?

Types of Companies  
There are two main kinds of companies:

Private Corporation  
These companies have to follow rules just like individuals do, and they are owned by one person or a group. They might sell stock, but it’s not traded on the stock market. Examples include Mars candy, Publix supermarkets, and your local family-owned restaurants or even your lemonade stand.

Public Corporation  
A public corporation is a type of company that allows people to buy shares (pieces of the company) on a stock exchange. If someone owns a lot of shares, they have a bigger say in the company. These companies have to report their financial information to regulators. Examples are Amazon, Apple, and Coca-Cola.

Growing a Company  
Imagine you are an entrepreneur who makes backpacks. After posting a video of your backpacks online, they become super popular! Everyone wants to buy them, and you can’t keep up with the demand. You might think about building a factory to produce more backpacks quickly, but that costs a lot of money. To pay for the factory, you’ll need to find ways to raise funds, and one option is to go public and sell shares in the stock market.

Can you think of other ways companies can raise money?

Fund that Factory  
1) List ways a company can earn money in 5 minutes.  
2) Create two lists of products: ● 5 things you need ● 5 things you want  
3) Which companies make the products from question 2? 
4) Do you believe that each of these companies is a public corporation or a private one? What makes you think that?