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
