Types of Businesses

What is Business?

All the activities involved in producing and marketing goods and services

Ex. Kroger, Ford

                

TYPES OF BUSINESSES

LARGE VS.

DOMESTIC VS.

PROFIT VS.

PUBLIC VS.

GOODS VS.

SMALL

GLOBAL

NONPROFIT

PRIVATE

SERVICES

LARGE VS. SMALL

LARGE- Over 100 employees- Have many different

departments- Ex. Richs, Macys,

Ford, Chevrolet, Kmart, Wal-Mart

SMALL- Less than 100

employees- Small budgets and

staffs- 95% of U.S.

business- Ex. Florists, gift

shops, “Mom & Pop” stores

                   

DOMESTIC VS. GLOBAL

DOMESTIC

- Buyers in

single country- Businesses who

stay only domestic face losing business

- **Zaxby’s

GLOBAL

- Exchange among nations

- Internet makes this easy

- **McDonalds

PROFIT VS. NONPROFIT

PROFIT- Earn a profit for the

business they conduct

- Biggest reason people start businesses

- Ex. Microsoft: $12 billion in 2000

NONPROFIT- Still hire employees

and pay expenses- All $$ left after

expenses goes to charity

- Ex. Boys/Girls Club,

American Red Cross

PUBLIC VS. PRIVATE

PUBLIC- Operate as

businesses do but do not intend to make $$

- Ex. Government agencies such as public schools and libraries

PRIVATE- All businesses not

associated with government agencies

GOODS VS. SERVICES

GOODS- Businesses that sell

goods

- Cars, food, clothing

- Ex. Gap, Publix

SERVICES- Businesses that

provides services

- Dry Cleaning, Car Repair

- Ex. Maaco, Hangers Dry Cleaning

CAN YOU FIGURE THESE OUT?

1) FORD Large or Small

2) LARRY’S EASY PAY Domestic or Global3) AMERICAN CANCER SOCIETYProfit or NonProfit4) WINDER-BARROW HIGH SCHOOLPublic or Private 5) TEXACOGoods or Services

The different types of businesses are…

LARGE SMALL

DOMESTIC GLOBAL

PROFIT NON-PROFIT

PUBLIC PRIVATE

GOODS SERVICES

Types of Business Ownership

Sole Proprietorship-owned by one person (76% of all businesses in U.S.)

Partnerships– General Partner– Limited Partner-liable up to investment

Corporations– C-corporation (corporation/shareholders pay taxes– S-corporation (taxed like a partnership-profits taxed at

personal tax rate)– LLC- simpler than a corp. protects owners from liability suits

See pg., 143 for comparisons

THE END!!!!