TYPES AND FORMS OF BUSINESS OWNERSHIP

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TYPES AND FORMS OF BUSINESS OWNERSHIP

Types of Businesses - Non-Profit

Four main types: 1. Public Charities Organizations 2. Social Advocacy Organizations 3. Foundations 4. Trade and Professional Organizations

Doctors of the World

Food bank

Doctors Without Borders

Red Cross

- Lack of Funding

- Paperwork, Paperwork, Paperwork

- Public Scrutiny

- Longevity

- Legal Protection

- Tax Exemption

- Doing Good

- Instead of owners and shareholders keeping a company's earnings and using them for personal use, a nonprofit organization typically focuses on a larger mission, donating revenue to a specific cause or cause. may benefit the public

- A nonprofit organization is an organization that uses its surplus revenue to achieve its purpose or mission rather than distributing its surplus income to the directors of the organization as profit.

Types of Businesses - E-Commerce

- According to Digital Commerce 360's analysis of US Department of Commerce data, e-commerce spending reached $347.26 billion in the first half of 2020, up 30% year-over-year

- E-commerce has been around since the early 1990s when Amazon only sold books, but today it's a multi-billion dollar industry - and it's even bigger during a pandemic

Asos

Goat

Codibook

Amazon

Shein

- Easily seen as a scam or scammed through text messages

- For products that pay at the time of delivery, it is easy to get scammed

- It is difficult to communicate directly when there is a problem

- Increase sales through marketing on social networking sites or the Internet

- Reachable to many people worldwide

- There's not much overhead in running an e-commerce business compared to a brick-and-mortar store, and it allows you to reach a worldwide audience.

- When receiving the money, the merchant transports goods or provides services.

- Customers visit websites or online marketplaces and purchase products by electronic payment

- E-commerce is the process of selling goods and services over the internet

Types of Businesses - Manufacturing

BMW

Nestlé

Dell

Nike

- Must create a unique point for your productsc

- Usually buyers will buy through a 3rd party instead of buying directly

- Vulnerable to inventory

- Do not have to import products through 3rd parties

- They can be proactive in the production of products

- Manufacturing businesses can choose to sell their products directly to consumers, to other manufacturers, to distributors or to wholesalers.

- Manufacturing businesses often employ machines, robots, computers, and humans to produce the merchandise and typically use an assembly line, moving from one workstation to the next

- A manufacturing business is any business that uses raw materials, parts, and components to assemble finished goods.

Types of Businesses - Merchandising

Other

- Whenever you shop for food, household products, or other personal goods, you’re likely buying your products from a merchandising business.

- The merchandising business is one of the most common types of business models out there.

Sephora

Winners

Walmart

Dollarama

Sportchek

- Must create a distinction in the eyes of consumers in marketing and create a highlight when selling

- Costs to set up and costs to rent space

- Inflexibility in product import and production costs

Advantage

- Supplying a wide range of products from many different manufacturers

- Can get a wholesale price when importing many products from the manufacturer

- No need to spend a lot of money to produce products

- The business will purchase the goods in large quantities from the manufacturer or distributor and will then resell the same goods to you in retail.

- A merchandising business is a type of business where they purchase different types of products and resell them to consumers

Types of Businesses - Service

- Don’t need to be an in-person company, but it can also work online or through app

eBay

Canada Post

Skyscanner

Remitly

- Difficult to contact and work directly when having problems

- More complex setup process

- Limits to sale

- Improved security

- Higher profit

- Huge market potential

- Can work online

- This task is directed to help a business or an individual in subjects such as consulting, accounting, transportation, cleaning, hospitality, traveling or maintenance, among others

- From a business standpoint, service businesses are those that provide an activity or the performance of a task with a commercial purpose

- In these businesses the product is not a tangible one, instead, it is an activity that helps a third party in different areas

- A service business is a company that provides particular professional support to its clients

Forms of Business Ownership - Co-operative

The co-op company structure dates back at least 519 years. According to Aberdeen, Scotland's Shore Porters Society, the world's first cooperative was founded in 1498.

cable television

fish marketing

retail supply

-Legal restrictions on dividend payments on shares might not be appropriate for an investor-driven company.

-Equal voting rights for all members, regardless of investment, may not be suitable for a firm driven by investors.

-liability for members is limited

-this structure encourages member contribution and shared responsibility

-there are equal voting rights for members

An association of people (organization) that is owned and controlled by the people to fulfill their shared needs and ambitions in the economic, social, and/or cultural spheres through a jointly owned and democratically run firm is referred to as a cooperative (enterprise).

Forms of Business Ownership - Franchise

Franchises employ 18 million people in the United States and output more than 890 billion dollars each year. It is estimated that 10.5% of businesses with paid employees are franchises.

Subway

mcdonalds

Limited created ideas

Cost and fees, and down payment

Existing customer base and brand awareness

Little to no industry experience is necessary

Forms of Business Ownership - Corporation

A corporation, also referred to as a C corp, is a separate legal entity from its owners.

Microsoft

Apple

Rigid protocols

Subject to double taxation

Time consuming

Separate legal Entity

Lower tax rates

-Easier access to capital

An organisation called a corporation is one whose shareholders choose a board of directors to manage its operations. The corporation, not the shareholders, is responsible for the operations and financial health of the company.

Forms of Business Ownership - Partnership

Partnership businesses are not necessarily 2 people; it could be a school, the government and an organization.

physician

Real Estate

Law firms

You have to split profits

Future Selling Complications

You have less financial burden

-Easy to establish and start up costs are low.

- 2 heads are better than one

A partnership is a type of business where two or more persons jointly own the company and are responsible for managing it and for any profits or losses it makes. Nov 15, 2022

Forms of Business Ownership - Sole Proprietorship

Sources

Other

It is the simplest kind of business. The owner pays everything with his personal income.

Examples

Freelance graphic designer

Local Clothes Stores

Local Grocery Stores

Disadvantages

-Taking A day off means Lost income

-High Self Employment + taxes

-Less Legal Protection

- Less financial Protection

Advantages

- you have max privacy

-startup costs are low

-You keep all the profits

-Your the boss

Definition What is it?

An unincorporated business that is owned by one individual. Her sole responsibility for making decisions, receives all profits, claims all losses.