BUSINESS OWNERSHIPS
Service
Definiton
Offers its customers expert support
Benefits customer by providing assistance
Intangible service is provided rather than a physical good
Advantages
You don't have to sell products so no inventory is needed.
Can earn an expert status
Can help with getting further in the industry
Disadvantages
Need to earn people's trust
AI may take your job in the future
Example: They have already replaced cashiers.
Uber
Massage Parlors
Plumbing Repair
Interesting Info
22 million+ people work in service industry in the U.S.
Good service sector = great economy
Merchandising
Definition
Company that buys goods and sells them
Sells tangible items to consumers
Advantages
Increased Sales
There's always materials to sell
Disadvantages
May have loss of money if you don't follow trends
Trends also change fast so there is a risk in that factor
Expiry dates
Leading to a loss of money
Examples
Clothing stores
Supermarket
Dealerships
Interesting Info
Business that always exists
Because people always need products to live/for entertainment
Manufacturing
Definition
Assembles final products
Raw Materials + Components = Finished Goods
Advantages
Production time is less
Industry is becoming more efficient
Means more profit because of technology's advancements
Cost Reduction
Because of AI
Disadvantages
Humans are becoming easily more replaceable by AI
Causes environmental issues
Examples
Caldense Bakery
Bakery
Rina Fashions
Tailor Shop
Interesting Info
Industry uses humans, robots, machines, etc. altogether to produce finished goods.
E-Commerce
Definition
Electronic selling of goods
Interaction happens over the internet
Subtopic
Advantages
Lower startup cost
Can reach a bigger audience
Can expand business internationally a lot easier
Disadvantages
Highly competitive
Customers may feel iffy about buying your things
They may think its easier to just buy it from a physical shop.
Examples
eBay
FlipKart
Shein
Interesting Info
2.3 billion people were expected to buy off of the internet in 2022.
Non-Profit
Definition
Don't focus on earning profit
Usually made for helping society
Also made for social/political/religious advancements
Advantages
Employees are more commited
Like minorities/the vulnerable
Help communities
Disadvantages
Limited Funding
Social Pressure
Examples
Public Schools
Such as: RHSS, SLSS, etc)
Greenpeace
Environment Charity
The Canadian Red Cross Society
Mississauga Foodbank
Interesting Info
86, 000 charities in Canada
World Vision Canada is the biggest non-profit Canadian organization
Sole Proprietership
Defintion
A business owned and ran by one person
Advantages
You get to keep all of your profits
You are your own boss and can make your decisions freely
disadvantage
All the workload falls on your shoulders
Unlimited Liability (Debt liability falls upon personal assets too)
Examples
Personal trainer
E-Commerce
Photographer
Local Grocery store
Interesting info
Unlimited liability (Personal Items can be seized to repay debts)
Partnership
Definiton
2+ people coming together to create a business
Liabilities and profits are split among the partners
Advantages
More capital to startup
More borrowing capacity from the bank
Liabilities are split
Disadvantages
Profits are split among partners
Possibility of internal conflict
Responsible for partners mistakes/liabilites
Examples
Law Firms
Grocery Stores
Interesting Info
Partnership businesses are also unlimited liability and personal assets can be used to recover debts
Corporations
Defintion
Business that is a separate legal entity from its owners
Advantages
More money because company sold into stocks
Limited liability (Personal assets are protected)
Disadvantages
Costly/Complicated
Double the tax (Shareholders pay once then the corporation pays)
Examples
Walmart
Apple
Interesting info
The corporation can sign contracts and properties under its name.
Franchise
Defintion
When you pay a franchiser to use their brand and business system
You start a business using their brand. Profits are split
Advantages
Existing consumer base
No industry experience needed
Low Risk
Disadvantages
Initial costs
Tons of regulations
No financial privacy
Examples
McDonalds
Tim Hortons
Interesting info
Franchising employs more than 18 million people
1 in every 12 businesses is a franchise business
Co-operative
Definition
Businesses that are owned and ran by the customers
Advantages
Supports local economy
Each shareholder has 1 vote as opposed to 1 vote per share
Disadvantages
Members have equal voting rights no matter the investment
Lots of disagreement
Examples
Dairy Farmers of America
Farmer Markets
Interesting info
The business model is over 500 years old