Would like to provide a service to schools where create extracurricular student groups in which the children would start a business and run it and revenue generated from the student business would help provide extra funding for the school.. Can schools own a business.
This is an interesting question that is pretty loaded with possible results.
If you've got an idea -- that is awesome. It's now all about the execution of that idea.
With regards to your question of, "Can a school own a business" -- I'd recommend if you have an idea that you approach a school that you have a possible relationship with *already* and speaking to them about this model directly.
A business like this is ideal for starting in the "Lean Startup" (take a look at Eric Ries) approach by testing your initial hypothesis (what is that ONE question that would tell you if this would lead to customer #1 or FAIL fast and then pivot)?
This is a great start.
- mike vizdos