Business

Sole Proprietorship
A sole proprietorship is a business where one individual is in charge of the entire business without shared ownership

Facts:

Easiest and least expensive form of business management

Has the easiest tax reports

Easy to startup

The owner makes more money

Advantages:
Have complete control: You make all the choices and have complete influence
Keep all profits: Besides employee expenses, you keep all the income of your company

Easy to change legal structure if your circumstances change

You have privacy: Since the company won’t file any formation documents you don’t have to worry to worry about making reports for the federal or provincial governments like corporations

Disadvantages:
Unlimited liability: Your personal assets can be taken due to adverse legal action

Hard to raise capital: Owner of the company will have to raise money to build up the company themselves or get investments

Hard to control: If your company grows it will be hard to manage as more employees come

Franchise

Facts

Most entertainment franchises are owned by a larger company

There are over 3000 franchisors in America alone

Advantages:
Offer small business ownership with large business network

You don’t need business experience to work or run a franchise training is given

Franchise often have a reputation leading to increase profit and easy management

Disadvantages:
Buying a means you go into a formal agreement with the franchisor

Buying a franchise means that you have to run the business based on how the franchisors ran it

You have to share profit with the franchise

Co-operative:
A business that is owned by people who use the product

Advantages:
More funding opportunities: Some businesses get government funded grants to start the business

Less Tax: Co-operative businesses don't pay surplus taxes

Perpetual Existence: Brings less disruption to business and more continuity

Disadvantages:
Obtaining Capital: Will need investments to gain more cash flow

Lack of precipitation: If some members don’t involve themself in meetings than the business will have a hard time operating

Facts

29,000 cooperatives operate in every sector of the U.S. economy.

1 billion people are members of cooperatives worldwide.

1 in 3 Americans are co-op members holding 350 million co-op memberships worldwide.

Partnership
An operation involving two or more people who share managements and money

Facts

Multiple forms of partnership

Silent partners who only invest in the company

Secret partners who have involvement but isn’t publicly involved

Advantages:
Two heads are better than one: More people in charge means more people who can share responsibilities
Shared Ownership: Split taxes so one person doesn’t pay everything

Legal Structure: Like a Sole Proprietorship it is easy to change your legal structure if your circumstances

More Capital: Two or more owners means better outreach and is easier to expand

Disadvantages:
You are dependent on Your Partner: You depend on your partners to keep your business up

Each partner is liable for the other partners debt and tax
Disagreements: If one of the partners disagree on something than friction and arguments can occur

If a partner joins or leaves than you must value in all their assets which will be costly

Cooporation
A company that is authorized by the state to act as a single entity and is recognized as such in law

Advantages:
Limited Liability: Each shareholder is only responsible for his or her own part of the company

Easy Ownership Transfer: It is easy to transfer one shareholders ownership to another

If the corporation is made as a S corporation than profit and losses than it passes through the shareholder so the company doesn’t pay income tax

Disadvantages:
More taxes: Depending on the corporation shareholder will pay as more taxes

Independent Management: Each shareholder is responsible for a certain part of the company and rarely knows what goes on with the other shareholders outside meetings

Facts

There are multiple forms of corporation

S Corporation are most common in North America

Service Business

Advantages

An important advantage of service companies is that they are able to adapt to the changing needs of their customers much quicker than product-based companies.

Adaptable to Changing Wants and Needs

Definition

A commercial enterprise that provides work carried out in an expert manner by an individual or a team for the benefit of its customers.

Disadvantage: Difficult Valuation

The service business is more difficult to evaluate than the manufacturing or retail business. Some businesses have value-added inventory, equipment and other hard assets. With a computer and very little equipment, you can start a service business.

Examples

Education

Mercheandising

Definition

A merchandising company will usually buy its goods domestically and internationally from a large number of retailers and sell the product in large shopping facilities.

Advanatges

Increased Sales
Your clients will start connecting your attractive merchandise to your store, and it can affect where they come regularly to shop.

Brings Customers In
Merchandising will increase the number of customers finding you and visiting your shop. With heightened traffic, sales and performance can increase. What happens once you get them inside is the merchandising, product line and pricing of your interior

Examples

School of Fashion - Seneca College.

Berluti.

Disadvantages

You have to be comfortable with the disadvantage of an initial investment in order to reap the rewards after the process. The cost to install the new devices and create new signage and to improve the overall appearance of your retail space inside and outside

The increase in the number of customers also means a required payroll increase. With more people coming every day, more sales and more deliveries lead to more customer service problems, more hours and more agencies.

Manufacturing

Definition

Making large scale articles using machinery; manufacturing industrial

Advantages

The main advantage of keeping things indoors, of course, is versatility. Rather than having to contact businesses across the globe to change something, add something or contribute an idea one department simply has to meet the other

This peaceful and versatile way of interaction helps companies to shift quickly and easily through the processes of planning, innovation, product development and production

Disadvantages

Nonetheless, there are still underlying difficulties in achieving consistently good production including poor communication arising from language barriers and time-zone variations, curriculum limitations, and limited technical support on-site.

Companies will generally lose some control and visibility when they outsource to LCCs, creating increased risks.

Examples

Food, Beverage, and Tobacco.

Non-profit

Definition

not making or conducting primarily to make money.

Advantages

Some non - profit are allowed to rivice common and private grants, making it easier to get work capital.

There may be more accepted characters for a non - profit company than for a person or persons informally trying to accomplish their non - profit motive.

Disadvantages

In order to be exempt under the tax law, a non - profit organization can only perform certain functions listed in those laws.

Most types for toll spread, non - profit organization are banned from contributing to political campaigns and may only do a limited amount of demand

Examples

Big Brothers and Big Sisters of America

E-commerce

Definition

Electronically, on the Web, business transactions

Advantages

E-Commerce increases competition between businesses and ultimately provides significant consumer discounts.

Customers can easily select products from different providers without moving around physically.

Disadvantages

The lack of feel or touch of items when shopping online is an annoyance

E-commerce applications continue to evolve and rapidly change.

Example

Warby Parker – Online eyeglasses without the markup.