5 Types and Forms of Business Ownership Mind Map

forms of business ownership-Sole proprietorship

Definition:
A sole proprietorship is an unincorporated business that is owned by one individual

Advantages:
-Simplified business ownership
-Easier process and fewer requirements for business taxes

Disadvantages:
-Unlimited liability for debts
-Retaining employees can be difficult

Other information:
-You have to pay personal income tax on profits earned
-Personally entitled to all profits

Real life examples:
1.) Tutors
2.) landscapers

Forms of business ownership-Partnership

Definition:
A general partnership is a business owned jointly by two or more people

Advantages:
-Wider range of opportunities
-No tax on profits before distribution to the partners

Disadvantages:
-Lack fo stability
-Conflict and disagreements

Real life examples:
1.) Law firms
2.) Real estate investment firms

Sources:
1.) WWW.lInvestopedia.ca
2.) WWW americanexpress.com

Types of business-Ecommerce

Definition:
Business to Consumer This e-commerce model involves companies selling their products or services directly to the end user, the consumer who needs it.

Advantages:
-Faster buying process
-Cost reduction

Disadvantages:
-Highly competitive
-customers demand quick responses

Other information:
-Estimated that 95% of purchases will be made online by 2040
-E-commerce industry is growing 23% every year

Real life examples:
-Amazon
-Shopify

Types of Businesses-Manufacturing

Definition:
Discrete manufacturing: a technique to build unique and distinct goods

Advantages:
-Allow people to create and build things that are useful to society
-Helps cut costs and increase profits

Disadvantages:
-Lack of flexibility
-High risk

Other information:
- Manufacturing industry makes up most peoples employment
-Most manufacturing companies are small businesses

Real life examples:
1.) Food manufacturing
2.)3D printing

Sources:
1.) Geniuserp.com
2.) Accountingprofessor.org

Types of businesses-Non-Profit

Definition:
A business not intended to make a profit but to make money for a social or political purpose

Advantages:
-Professional registered agent
-Limited liability protection

Disadvantages:
-Expenses
-No lobbying or political campaigning

Other information:
-There are 86,000 registered Canadian non profit businesses
-This sector brings billions dollars to our economy each year

Real life examples:
1.) National relief charities
2.) Center for community change

Types of Businesses ; Service

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What is a service business?
A service business provides a skilled service or expertise instead of physical products.

Advantages
- Only having to use your personal skills
- Having a skill that people need for their personal needs

Disadvantages
- Managing and finding others with same level of expertise
- Not much control over your client(s) final products

Examples of Service Businesses
- Designers
- Doctors
- Hair stylists

Interesting Information
- Consumers rely solely on costumer service and how they are treated.

Types of Businesses ; Merchandising

What is a Merchandising business?
A Merchandising business buys products and resells them to costumers.

Advantages
- Increased Sales
- Big inventory/space

Disadvantages
- Having to keep up with trends/popularity
- Demands on staffs/employees

Examples
- Supermarkets (Walmart, Staples, Shoppers, Etc)
- Clothing stores, Merch stores

Interesting Information
- Using creative ideas to promote and resell products.

Forms of business ; Co-operative

What is a Co-operative business?
A business that has multiple owners/members.

Advantages
- No limit to members
- Encourages member contributions

Disadvantages
- Lack of motivation
- Inefficient management

Examples
- Cable televisions
- Community services

Interesting Information
- These businesses are made to solve problems
or a common concern.

Sources -->

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Forms of business ; Franchise

What is a Franchise business?
A joint between a main business with multiple locations owned by the same company franchise.

Advantages
- Brand has recognition
- Decisions are planned out in advance

Disadvantages
- Success isn't guaranteed
- Large amount of money to get started

Examples
- McDonalds
- Wendy's

Interesting Information
- 1 in 12 businesses are franchises

Forms of businesses ; Corporation

What is a Corporation business?
A corporation business is where the company is separate from it's owners.

Advantages
- Tax rates are lower
- Ownership is easier to transfer

Disadvantages
- More requirements to be met
- More pricy/complicated to start

Examples
- Banks (TD Bank, Scotia Bank)
- Coca Cola

Interesting information
- Corporations are harder to operate