BUSINESS OWNERSHIPS

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FORMS OF BUSINESS OWNERSHIP

TYPES OF BUSINESSES

BUSINESS OWNERSHIPS

Co-operative

The business model is over 500 years old

Farmer Markets

Dairy Farmers of America

Lots of disagreement

Members have equal voting rights no matter the investment

Each shareholder has 1 vote as opposed to 1 vote per share

Supports local economy

Definition

Businesses that are owned and ran by the customers

Franchise

Interesting info

1 in every 12 businesses is a franchise business

Franchising employs more than 18 million people

Tim Hortons

McDonalds

No financial privacy

Tons of regulations

Initial costs

Low Risk

No industry experience needed

Existing consumer base

You start a business using their brand. Profits are split

When you pay a franchiser to use their brand and business system

Corporations

The corporation can sign contracts and properties under its name.

Apple

Walmart

Double the tax (Shareholders pay once then the corporation pays)

Costly/Complicated

Limited liability (Personal assets are protected)

More money because company sold into stocks

Defintion

Business that is a separate legal entity from its owners

Partnership

Interesting Info

Partnership businesses are also unlimited liability and personal assets can be used to recover debts

Grocery Stores

Law Firms

Responsible for partners mistakes/liabilites

Possibility of internal conflict

Profits are split among partners

Liabilities are split

More borrowing capacity from the bank

More capital to startup

Liabilities and profits are split among the partners

2+ people coming together to create a business

Sole Proprietership

Interesting info

Unlimited liability (Personal Items can be seized to repay debts)

Local Grocery store

Photographer

Personal trainer

disadvantage

Unlimited Liability (Debt liability falls upon personal assets too)

All the workload falls on your shoulders

You are your own boss and can make your decisions freely

You get to keep all of your profits

Defintion

A business owned and ran by one person

Non-Profit

World Vision Canada is the biggest non-profit Canadian organization

86, 000 charities in Canada

Mississauga Foodbank

The Canadian Red Cross Society

Greenpeace

Environment Charity

Public Schools

Such as: RHSS, SLSS, etc)

Social Pressure

Limited Funding

Help communities

Employees are more commited

Like minorities/the vulnerable

Also made for social/political/religious advancements

Usually made for helping society

Don't focus on earning profit

E-Commerce

2.3 billion people were expected to buy off of the internet in 2022.

Shein

FlipKart

eBay

Customers may feel iffy about buying your things

They may think its easier to just buy it from a physical shop.

Highly competitive

Can expand business internationally a lot easier

Can reach a bigger audience

Lower startup cost

Interaction happens over the internet

Subtopic

Electronic selling of goods

Manufacturing

Industry uses humans, robots, machines, etc. altogether to produce finished goods.

Rina Fashions

Tailor Shop

Caldense Bakery

Bakery

Causes environmental issues

Humans are becoming easily more replaceable by AI

Cost Reduction

Because of AI

Industry is becoming more efficient

Means more profit because of technology's advancements

Production time is less

Raw Materials + Components = Finished Goods

Assembles final products

Merchandising

Business that always exists

Because people always need products to live/for entertainment

Dealerships

Supermarket

Clothing stores

Expiry dates

Leading to a loss of money

May have loss of money if you don't follow trends

Trends also change fast so there is a risk in that factor

There's always materials to sell

Increased Sales

Definition

Company that buys goods and sells them

Sells tangible items to consumers

Service

Interesting Info

Good service sector = great economy

22 million+ people work in service industry in the U.S.

Examples

Plumbing Repair

Massage Parlors

Uber

Disadvantages

AI may take your job in the future

Example: They have already replaced cashiers.

Need to earn people's trust

Advantages

Can earn an expert status

Can help with getting further in the industry

You don't have to sell products so no inventory is needed.

Definiton

Intangible service is provided rather than a physical good

Benefits customer by providing assistance

Offers its customers expert support