Types and Forms of Business
Forms of Business
Sole Proprietorship
Where ownership is on 1 person giving them responsibility of their business
Advantages and Disadvantages
Fewer Taxes
Full ownership
Liabilities
Difficulty on making money
Photographers
Personal Trainers
Partnership
A business run by 2 or more people where they contribute their work and skills
Advantages and Disadvantages
Less work in general
Extended knowledge
Partners choices can affect you
Disagreements
Plumbing
Accounting groups
Corporation
Where the business is having shareholder meetings to make votes as they’ve invested into the business
Advantages and Disadvantages
Easier to transfer ownership
Limit personal liability
Higher tax
More disagreements
Amazon
Microsoft
Franchise
A business that sells their own items by their own name
Advantages and Disadvantages
Brand Recognition
Collaborations
Commitment
Federal Regulation
Apple
Disney
Co-operative
Owned by multiple members who separate the profit
Advantages and Disadvantages
Extended knowledge
Less work
Less chance of investors to get control
Disagreements
Mutual insurance companies
Credit unions
Types of Business
Service
A service done to you by trained individuals for a fee
Advantages and disadvantages
Don’t have to worry about inventory.
Time intensive
Merchandising
Reselling of goods by retailers to customers.
Walmart
Target
Advantages and disadvantages
High profit margins
More customers.
It is not necessary that the inventory will be sold.
Difficulty in finding suppliers.
High taxes
Manufacturing
The process of manufacturing raw materials to finished goods and selling them.
Rolls royce
Boeing
Advantages and disadvantages
You can control the manufacturing based on demand.
High standards of safety.
You need a lot of money to start.
High cost of machinery
E-Commerce
It is a method of buying and selling goods and services online.
Amazon
Temu
Advantages and disadvantages
Reduced overall costs.
Track logistics
You have high competition
Less communication with customers.
Nonprofits
Organizations that offer goods and services and don't intend to make money.
Canadian cancer society
UNICEF
Advantages and disadvantages
Tax exempt
Make a difference
Dependent on donations.
Lots of paperwork to deal with.