Types of Businesses and Forms of Business

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Types of Businesses

Subtopic

Merchandising Business

Manufacturing Business

E-Commerce business

Service Business

Definition: A service that provides you with a service non physical product that fulfills your daily needs

Disadvantages

Demand cutbacks, people will back away from your if you start to increase prices, or lower service qualities

Advantages

Understand better what your competition is Bell and Rogers are one of them. Which has a faster internet speed.

Types of Businesses and Forms of Business

Forms of Business

Cooperative

Definition: A Business owned by its customers

Cons:

-Hard to find customers seeking financial returns -Limited distribution of Profits

Pros:

-Cheap to register -All members/customers -Members can be under 18: they cannot be directors however

Franchise

Definition: A company that allows a certain individual to carry out activities as the company and the individual agree on.

Pros:The chance of the business failing is really low because the franchise is already branded:therefore customers trust this franchise

Cons:The chance of the business failing is really low because the franchise is already branded:therefore customers trust this franchise

Corporation

A corporation is a legal entity that is separate from its owners

Cons: -Time consuming -Expensive

Pros: -Owners are not involved with legal liability, so owners are not responsible for lawsuits and debts -Sell stocks to investors, that increases financial capital

Partnership

Definition: Just like sole proprietorship but with 2 or more people

Pros: -Less paperwork than corporation -Less expensive

McDonald’s, Apple, Microsoft, Ben and Jerry’s

Cons:-50/50 debt, so the debt will be shared with your partner -Creditors can go after personal property to satisfy a claim

Sole Proprietorship

Definition: A company run by one person

Doctor Dentist Attorney

Cons: Have to pay for all expenses Hard to get loan Creditors can come after personal property Harder to raise capital over long-term basis

Pros: 100% Control All profits go to you Easy to start up