Types and Forms Of Businesses
Sole proprieorship
Keep all the profits
Control the business on your own
SImpler income tax
Examples: Walmart, Marriot hotels, McDonald's All are companies that started by one individual
Disadvantages:
Hard to take holidays
Difficulty raising money
Partnership
Examples:
Microsoft, Google, Ebay, Nike, Netflix
Disadvantages:
Could cause conflict
Split profits
Advantages:
Tax savings
More money
Different perspectives
Coporation
Examples: Coca-Cola Co., Microsoft Corporation
Advantages:
Lower risks
Higher profits
Brand recognition
Disadvantages:
Lack of independence
Costs and fees
Tied to suppliers
Franchise
Example: KFC, Dominos
Advantages:
Lower tax rates
Better management
Disadvantages:
Expensive
Complicated to form
Co-operative
Disadvantages:
Limited funds
Slow decision Making
Advantages:
Lower costs
Equal voting rights
Low taxes
Examples: Banks, Associated press, Desjardins
Service
Examples: babysitting, surgeries, therapy.
Advantages: You'll become an expect in your field, you won't have any inventory.
Disadvantages: Consumers usually cut back on services, service businesses are hard to value.
E-Commerce
Examples: Amazon, ebay
Advantages: Retargets the customers, helps connect people across the world.
Disadvantages: long delivery period, security issues.
Non-Profit
Examples: Hospitals, public schools
Advantages: Financial benefits, employee commitment.
Disadvantages: Takes time, expensive, a lot of effort.
Manufacturing
Examples: Bakeries, shoemakers
Advantages: Friendly with the environment, offers more jobs.
Disadvantages: Lack of control, poor quality.
Merchandising
Examples: Walmart, home depot
Advantages: Increased sales. more customers
Disadvantages: Lots of demands on products, expense.