Forms of Business ownership

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Types of Business - Forms of Ownership

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Forms of Business ownership

Manufacturing

Candy stores

Bakerys

Safety concerns

More jobs for Americans

Shorter lead times

Creation of new products

Corporation

Other

Lasts until the purpose of the corperation is finished

Microsoft

Amazon

Taxes are charged from both cooperate earnings and share holders

More costlier to process incorporation

Corporations find funds from selling stocks

Limited chance for liability

Legal entity that is made by a person or stock holders to operate for profit

Partnership

https://www.investopedia.com/terms/p/partnership.asp

https://connects.world/top-10-business-partners-examples/

Partners are able to go after personal assets so it is very important to select a trusted partner

Amazon and American express

Red bull and Go Pro

A big chance of disagreement or mismanagement between the parties

The partner may bring debts or liabilities

Many partners allow new perspectives to the business

Can share tasks amongst each other to allow work balance

Partnership is formed by 2 or more parties to manage and run a business, profits are shared.

Franchise

Marriot international

McDonalds

Financial data is all shared to the franchisor, (no financial freedom)

A franchise limits creativity

Lower risk of failure as all trial and errors have been completed

Has an existing customer base

License giving access to a franchisors business, allowing the franchise to sell its products under the franchisor.

Non-Profit

Funding circle

Dance groups

Sport groups

Management oversight

Expenses

Tax-exempt status

Credibility

Operate for social welfare

E-Commerce

Toms

Dollar Shave club

Added cost to purchase online

Concerns about privacy and security

Easy to set up

Lower transaction Cost

Company selling products online

Merchandising

Electronics

Furniture

Clothes

Limited Budget

The cost

Increased brand recognition

Higher profits

Any entity that engages in selling a product

Types of Business- Service

Sources

Subtopic

Other (interesting information

purpose: delivering value to customers by facilitating outcomes that customers want to achieve without ownership of specific costs and risks

Insurance

Transportation

Banking

Disadvantages

Demand cutback

Mistrust sometimes

Advantages

Increase size of business by developing your skill

Flexible hours

Any intangible services that help serve as the backbone of business/organization

Sole Proprietorship

https://www.business.tas.gov.au/manage_a_business/tax/choosing_a_business_structure/sole_proprietorship

https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-income/setting-your-business/sole-proprietorship.html

Other

Sole proprietorship business have to register taxes for sales above $30,000

Examples

Websites that makes money of ads

Goods sold on eBay Etsy etc.

All major responsibilities of the business is on the on person

A lot of liability for debts as there is no legal distinction from private business.

Start up costs are fairly low

Get to keep all the profits

-You are the boss

Definition

Unoperated business owned by one person

CO-Operative

Sources

https://www.fiscaltiger.com/what-is-a-co-op/

Examples

Non profit organizations

Producers e.g.: (Sunkist)

Disadvantages

Response to market change is slow

Difficult to find fundings at times, leads to getting a loan

Advantages

Can be financed by members

Workers get say in all small and large decisions

Definition

Organization owned and governed by its members