BUSINESSES . . . . Produce And sell Goods or services For consumers

BUSINESS PEOPLE

CATEGORIES For Profit Not For Profit Make money Most businesses Help others Most government agencies Often part of For-Profit company

TYPES OF BUSINESS OWNERSHIP FIVE TYPES 1. SOLE PROPRIETORSHIP One owner Unlimited liability

2. PARTNERSHP Two or more partners Need partnership agreement (verbal or written) General partners have unlimited liability Combined have 100% ownership (could be unequal %) Involved in the business Mutual agency Limited/silent partner not involved in daily activities limited liability (only certain business may have limited partners)

3. CORPORATION/LIMITED COMPANY Highly regulated Provincial and Federal Name must include: Incorporated, Inc., Corporation, Corp. Limited, Ltd. Shares/stock are owned by shareholders and sold through a stock exchange. One or more owners Limited liability The corporation separate legal identity Separate taxation Double taxation (corporation and shareholders)

TYPES OF CORPORATIONS A. PRIVATE Up to 50 shareholders Shares are not offered to the public B. PUBLIC Unlimited number of shareholders Shares may be traded publicly in stock exchanges (e.g., TSE, venture exchange)or by brokers Fee charged to be listed

C. CROWN Owned by the government Usually provides services NON-PROFIT Provide services Do research or lobby for a cause

4. COOPERATIVE (CO-OP) Owned and operated by people with similar interest Equal share and one vote by each person

5. FRANCHISE Has franchisor (seller) and franchisee (buy) under a franchise agreement Could be sole proprietorship, partnership or corporation ownership

CANADIAN BUSINESSES The most common type of ownership…? The type of ownership with the highest sales…? Create a mind map (one page) that shows the advantages and disadvantages of the five types of business ownership Use page 49 in your textbook as a resource Include your name and an appropriate title Hand in your mind map to the teacher when completed