Myra Bhatti and Hibaq Omer

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Critical Reading

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Types of Business Ownership

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Singapore Birth Rate Issues

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Forms of business ownership mindmap Brandon F

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Myra: 5 Types of Businesses (Partner 1) Hibaq: 5 Forms of Businesses (Partner 2)

Interesting Fact: Canada’s charitable and non-profit sector is the 2nd largest in the world. There are an estimated 170,000 non-profit organizations and charities in Canada.

Interesting Fact: E-Commerce is the fastest growing business. Apparel and accessories sales are the fastest growing sector in e-commerce.

Interesting Fact: In recent data reports, manufacturing contributed to $2.7 trillion dollars to the US economy in 2016

Interesting Fact: Several merchandise companies may experience shoplifting, and in fact according to the National Association for Shoplifting Prevention, shoplifters take $35 million dollars of goods daily from retailers.

Interesting Fact: In 1984, the number of jobs in manufacturing was relatively high compared to the number of jobs in the services, but by 1999, the service industry employed about twice as many individuals as manufacturing or government.

- Limited Funding - Social Pressure or No Support for Organization

• Limited Funding - Fund development and fundraising can be a non-profit organization's greatest challenge, as receiving donations and funds to run their businesses may be difficult.
• Social Pressure - Organizations that focus on extreme events, may find it difficult to be socially accepted, as media and current news may be opposing what the organizations are supporting.

-Has to be minimum of 5 members -Difficult to attract members

-Equal vote at general meetings -Lower debt risk

-Restrictions on where you run your franchise

-Independent ownership -Don't need business experience -Easier to secure finances

- Rewards and Making Differences - Do not have to Pay Federal Taxes - Social Media Attraction

• Rewards - It has become a known fact that non-profit organizations truly make a difference in the area that they are working in (example, cancer societies), which helps to put them in social media and current events.
• Non-profit organizations do not have to pay federal taxes on their net income, allowing their earnings to be cycled back into the organization for several positive factors to improve the business.

- No Guarantee of Product Quality - Minimum Customer Interaction - Hacking of the Business can Easily be Acheived

• No guarantee of product quality, affecting the customer attraction for the business.
• Minimum chance of direct customer to company interaction, making it difficult to solve any issues.
• Hackers may receive the chance to hack an online business, affecting the sales of an e-commerce business.

-More time and money than any other business structure -Possible higher tax rate

-Not liable for debts -Able to deduct cost of benefits

- Faster Buying or selling Procedure - 24/7 Purchasing or Selling - Low Operational Costs

• Faster buying or selling procedure, which increases the sales of the business.
• 24/7 purchasing or selling, again increasing the purchases of the products.
• Low operational costs, saves businesses money.

- Costs - Reliance on Raw Materials

• Costs - Manufacturing companies can start losing money, when they are expected to purchase raw materials at high prices. Instead of simply supplying already finished goods to its consumers. 
• Reliance of Raw Materials - Companies that produce manufactured goods, must always purchase and use raw materials. This becomes difficult, as these businesses are expected to purchase the materials at any price in order to create the demanded goods.

- Demand - Job Satisfaction

• Demand - Manufacturing companies experience a high demand for their products because their products are produced from raw materials and the item is constructed from start to finish by the manufacturers, increasing their sales, attraction and ability to stay strong as a business.
• Job Satisfaction - Manufacturing may seem difficult, however for its employees, manufacturing allows them to create objects rather than only sell businesses, granting them with a job appreciation and satisfaction.

-Risk of disagreement/friction between partners -Liable for debts

Advanatges

-Two heads are better than one -Easy to establish -Start- up costs are low

- Changing Spaces - Increase in Expenses

• Changing Spaces - As a merchandise business continues to thrive, it may have to relocate for not only spacing purposes but as well as the visual look. When, there becomes an increase in demand, businesses soon run out of space to place their items on shelves and storages, while ensuring that it is visually appealing, which affects their sales of goods significantly.
• Expense - As merchandise businesses continue to grow, it becomes difficult for owners to install new features and make investments at low costs. New features may be out of budget, affecting the sales of the merchandise.

- Bringing Customers In - Increased Sales - Customer Loyalty

• Bringing customers in - Merchandising is an easy and effective way to attract customers, especially with increased traffic.
• Increased Sales - Merchandising can have a clear and positive impact on the business financially. As, pricing, displays, product packaging, product arrangement, sales signs and promotions can significantly increase the sales of a merchandise business.
• Customer Loyalty - Merchandising can easily contribute to customer loyalty and the development of customer relationships, which in an essence promotes customer attraction and sales.

-Sole proprietor can be held liable ford debts -Hard time finding investors

-No corporate tax payments -Few formal business requirements -Sole proprietor has complete control over the business

Co-Operative

A business firm that is owned, controlled and operated by a group of users for their own benefit

California State Auto Group

Swiss Union

Disadvantages

- Difficult Valuation - Demand Decrease - Time

• Difficult Valuation - Starting up a service business can be simple, however keeping track of the records and sales may be difficult, as there is no actual inventory. This, then may affect the organization and progress of the business.
• Demand Cutback - In difficult times, customers usually do not focus on services and simply rely on their essential necessities. This, then becomes difficult for service businesses to create sales and meet their financial needs
• Time - Service businesses require dedicated time to set up and and begin selling. Intangible items may become difficult to sell, as unlike a tangible product you cannot just put it in stores and sell to people easily. Selling services requires businesses to spend time convincing the consumers. 

Advantages

- Customization - Unique Selling Strategies

• Customization - Services can easily be customized instantly in order to accommodate for the needs of its consumers. Tangible products cannot always be easily customized, however services can be, in order to meet the needs of customers.
• Unique Selling Strategies - Services can easily become unique and different in the marketplace. Services can change the way they offer assistance in several different ways. By offering specialized services, companies are more likely to stand out.

Franchise

A business in which the owners can sell the rights to their business

Popeyes

Hilton Hotel

Sole Proprietorship

A business that legally has no separate existence from its owner.

Scarlett House Catering

Bryan's Tutoring Service

Corporation

A legal entity that is separate and distinct from its owners.

Apple

Walt Disney

Partnership

A form of business operating between two or more individuals who share the same profit

McDonald's (Richard and Maurice McDonald)

Warner Bros (Sam,Jack,Albert and Harry Warner)

Taking a Closer Look into the World of Business...

Non-Profit Business

A non-profit organization is a tax-exempt organization that serves a purpose in its community. It is a business in which the shareholders do not benefit financially and instead all of the earnings are put towards operations and programs for the non-profit business itself.

American Heart Association

The Salvation Army

E-Commerce Business

E-Commerce business is any type or form of business that transfers information online or across the internet.

Amazon

eBay

Manufacturing Business

A manufacturing business is any business that uses components, parts or raw materials to make finished goods.

Technology Company: Apple

Car Company: Ford

Merchandising Business

A merchandising business is a business that involves the activity of purchasing finished products and then reselling the products and goods to its consumers.

Michael's Crafts

Walmart Canada

Service Business

A service business is a company that offers intangible products to its consumers. A service business is composed of professional experts that deliver work to their customers.

Moving Services: Canadian Moving Services Inc.

Banks: BMO Bank