Characteristics of a Business

Characteristics of Entrepreneurial Ventures Profit Structure: For-profit v. Not-for-Profit Size: Small, Medium v. Large Types of Business: Service, Manufacturing, Merchandising Forms of Ownership: Sole Proprietorship, Partnership, Corporation Placement: Physical v. Virtual Scale: Local, Provincial, National v. International

Profit Structure For-profit business has the goal of maximizing its profit. Examples: Not-for-profit business has other goals.

Types of Business Manufacturing business buys raw materials, converts them into a new product and sells them to earn profit AKA producing business Merchandising business buys tangible products and resells them at a higher price of profit Tangible products: goods Service business sells intangible products Intangible products: service

Categorize the following business: Type movie theatre Uniqlo car dealership Riverwood Dental grocery store Wal-Mart computer manufacturer Coquitlam Public Library hair salon Apple

Forms of Ownership Sole Proprietorship: a business that has one owner The equity of the business belongs entirely to one person. Partnership: a business that has two or more people involved in the ownership and operation The partners sign a partnership agreement (a legal contract) to ensure success of the business Corporation: a business owned by shareholders AKA limited company The shareholders have limited liability

Placement Physical: a business has locations that customers can visit to make their purchases. Examples: Virtual: a business is conducted electronically

Scale Local Provincial National International: a business operates in more than one country Through globalization which has increased markets, businesses have been expanding beyond the borders

Choose 3 businesses and analyze their characteristics Choose 3 businesses and analyze their characteristics. For each category, evaluate the business’s choice. For instance, Riverwood Dental Clinic is operating as a small business—do you think their choice size is a smart one? Or do you think they have to hire more employees?