Types of Business
Non-Profit
Other
Approximately 1.8 million non-profit organizations
Charitable giving reckoned for 2.1% GDP
Volunteer Service Organizations
Public Clinics
Social Pressure - You may face potential backlash on organizations that are extreme. For instance religious
No Persuading or Political Campaigning
Seperate Entity Status
Gain Increased Credebility
Company/Organization which provides purposes rather than generating profit
Co-operative
Other: The members of a co-operative
business are also the owners.
Real Life examples: Day cares, utility comapanies
What is it-? A business owned & controlled by a group from which benefits are distributed equally.
A co-operative business supports community development
A versatile model that can be applied to any organizational size.
A co-operative business has fixed pricing &
less operational control
E-Commerce
Sales could reach up to 20.8% of Retail Sales Worldwide
Electronic Industry leads the market
Amazon
Ebay
Can't Try Before Buying Products
Highly Competitive
Cost Reduction
Affordable advertising and Marketing
A electronic commerce that trades goods and services on the internet
Manufacturing
Contribute $2.81 trillion at the rate of economy
Needs to be able to cover the cost of making the product and create a product that is suitable to the market
Bakery Manufacturing
Clothing Apparel Manufacturing
Higher Transportation Costs
Limited Creativity
Provide Several Jobs
Higher Standerd and Quality
Producing goods by hand or machine and selling to customers
Merchandising
Offering customers the goods that their customers anticipate purchasing is one of the most important components of retail merchandising. To be able to achieve this, we must work on product planning, procurement, storage, and display.
Supermarkets
Dealerships
Increase in customers
Cost of creating products
Earn Higher Profits
Shoppers more satisfied with business
Definition
Business that assists a product or brand through advertising
Service
Other
72% customers will tell six or more people if has a good experience
Need Skills to Work in a Service Business
Examples
Construction Services
Accounting Services
Harder to Value than Other Customers - You can experience low progress on numerous intitiaves
Lack Of Ownership
Easy to Start Up
Faster Potential Revenue
Definition
Company or Organization that performs tasks to help customers
Franchise
Other: Franchises employ more 18 million people
There are more than 785,300 franchises
Real life examples: Mcdonalds, Dunkin' donuts
Advantages & Disadvantages
There are strict rules in a franchise
There is little to no independence
Lower risk of downfall
You have support from the franchise owner
What is it-? Distributing products or services by putting
the company's trademark to a business
Corporation
Other: You can save yourself many tax dollars in a corporation since corporations pay very low tax, because it helps them to stay competitive, to service debts & have great flexibility overall.
Real life examples: Coca-cola
Microsoft
Advantages
Corporations can borrow money at lower rates
Shareholders are not responsible for the corporations debts.
Disadvantages
Corporations can be expensive to form
There are a lot of rules to follow
There is a high chance of having traitors in a business corporation.
What is it-? A business that is owned by multiple
shareholders
Partnership
What is it-? Two people putting work together in a business as partners.
Disadvantages
You have to split profits in a partnership, & there may be disagreements between partners which can lead to bad decisions being made by both partners.
Advantages
In a partnership there is less financial burden and you have the other persons support
Examples: Apple & mastercard
Uber & spotify
Other: A partnership is merely a legal relationship between business partners. Unlike a corporation, a partnership does not have a legal existence.
Sole Proprietorship
What is it?-An unincorporated business a person owns to themselves.
-There's privacy
-It's very simple to start your own business
-Start up costs are low
-Too much responsibility
- No distinction between private & business assets.
A few real life examples of sole proprietorship are:
-An artist
-A local grocery store
-A freelance worker
Other: There is a single owner taking full responsibility & controlling the business . This is what makes sole proprietorship ideal, especially for small business owners as there isn't the risk of conflict between owners of corporations & partnerships.
