Types & Forms of Business Ownership
Service Businesses
Sells intangible objects to create ease
Sells work done by by professionals
Schools teach children & provide them with knowledge
Sole Proprietorship
Sole Proprietorship is a simple business that is owned by one person. The business and owner are considered to be one entity by the government.
A convenience store is a type of sole Proprietorship because there is one owner that makes all the decisions.
Partnership
A partnership is a business owned by several people working as partners. They both contribute their assets and work to the business and then share the profit evenly.
There are a a lot of businesses that started of as partnerships then became very successful and became corporations. Some notable examples are McDonalds, Microsoft, HP, and twitter
Franchise
A franchise is a business that is legally started by using other companies ideas and design, the company guides you to what to do.
Examples are McDonalds who have many restaurants which are considered franchises and owned by one person. As well as the Toronto Raptors who are an NBA franchise, owned by MLSE but their rules follow the NBA.
Co-operative
A co-op is a business owned and used to benefit its members. It is made when several people have a need and work together to fix it.
Dairy farmers of Canada, DLG group, WGZ bank are all examples of co-operative organizations.
Merchandising
Buy & sell business
items bought at whole price, sold at retail price
Canadian Surplus Distributor supplies goods to stores & companies
they buy goods & products then sell them to other corporations
Grocery stores buy produce from farms & sell them at higher prices
Manufacturing
Raw materials are bought, goods are manufactured, the products are sold
Rubber is bought, made into tires, then sold to the market
Interactive Toy Concepts builds toys and sells the product to stores & consumers
e-Commerce
The transaction of buying & selling goods & services online
Social media can direct customers to sites, ex. eBay
sells goods worldwide through an online platform
Corporation
A corporation is a type of business that is considered legally separate from the owners and shareholders unlike sole proprietorships and partnerships
Many big companies that we see everyday are corporations examples are Google, Ford, Microsoft, Ikea, Macys, Ebay, Dell, and Sony.
Non-Profit
Organizations with a mission
All money earned is put back into the company
Habitat for Humanity builds houses & supplies people with necessities needed
