Forms of Business ownership

Definition

Organization owned and governed by its members

Advantages

Workers get say in all small and large decisions

Can be financed by members

Disadvantages

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

Response to market change is slow

Examples

Producers e.g.: (Sunkist)

Non profit organizations

Sources

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

Advantages & Disadvantages for Co-Ops | Bizfluent

Definition

Unoperated business owned by one person

Advantages

-You are the boss

Get to keep all the profits

Start up costs are fairly low

Disadvantages

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

All major responsibilities of the business is on the on person

Examples

Goods sold on eBay Etsy etc.

Websites that makes money of ads

Other

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

Sources

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

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

Definition

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

Advantages

Flexible hours

Increase size of business by developing your skill

Disadvantages

Mistrust sometimes

Demand cutback

Examples

Banking

Transportation

Insurance

Other (interesting information

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

Sources

Subtopic

Definition

Any entity that engages in selling a product

Advantages

Higher profits

Increased brand recognition

Disadvantages

The cost

Limited Budget

Examples

Clothes

Furniture

Electronics

Sources

Subtopic

Definition

Company selling products online

Advantages

Lower transaction Cost

Easy to set up

Disadvantages

Concerns about privacy and security

Added cost to purchase online

Examples

Dollar Shave club

Toms

Sources

Subtopic

Definition

Operate for social welfare

Advantages

Credibility

Tax-exempt status

Disadvantages

Expenses

Management oversight

Examples

Sport groups

Dance groups

Funding circle

Sources

Subtopic

Definition

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

Advantages

Has an existing customer base

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

Disadvantages

A franchise limits creativity

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

Examples

McDonalds

Marriot international

Sources

https://www.investopedia.com/terms/c/corporation.asp

https://blog.hubspot.com/sales/franchise-opportunities

Definition

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

Advantages

Can share tasks amongst each other to allow work balance

Many partners allow new perspectives to the business

Disadvantages

The partner may bring debts or liabilities

A big chance of disagreement or mismanagement between the parties

Examples

Red bull and Go Pro

Amazon and American express

Other

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

Sources

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

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

Definition

Creation of new products

Advantages

Shorter lead times

More jobs for Americans

Disadvantages

The cost

Safety concerns

Examples

Bakerys

Candy stores

Sources

Subtopic