1.1 What is a company?

If you can answer these 3 questions, feel free to skip to the video! 

(check your answers by clicking below where it says Read More...)

What is a for-profit?

What is non-profit?

What does is mean to develop?



A for-profit business is where people sell something.  This can be a product like Red Bull or a service like washing your car.  They receive their money by selling products or services to their customers and spend that money to make more products, find more customers, and sell more products.  In this type of business, the people that own the company can keep the money that they earn.

A non-profit business is typically trying to do something good for the world.  They may sell things at a lower cost or they may provide services for free or for a lower cost.  Since these businesses are not necessarily focused on making money, they rely on donations that people give the company to help them.  All the money a non-profit company makes must be put back into the company and cannot be kept by the people that run the company.  Don't think that this means the employees work for free!  The people that work for the company will receive a paycheck, but if there is extra money made in donations or by selling their products, they can't keep it.  That extra money needs to go back into the company







Developing means to change over time.  In this lesson, we'll talk about developing customers, but that doesn't mean you'll be changing customers over time!  You're going to find out what your customers want and change over time to fill their needs.  This may mean starting with one business idea and finding out that people don't want what you thought they did.  This might mean that you need to develop something else to help them that is different from what you started with.

If you feel that you understand these concepts, go on to the next post to watch the video.