6-Types of Business Ownership

Objectives: Describe the advantages and disadvantages of three major forms of business organizations. Describe how cooperatives ad nonprofits are like and unlike corporations and franchises.

3 Main types Sole-72% of all businesses Partnership—5% of all businesses Corporation—20% of all businesses – 3% are other types of ownership

Revenue Generated by Businesses

Sole Advantages

Sole Disadv.

Partnership Adv.

Partnership Disadv.

Corporation Registered by a state and legal entity (separate from owners) Adv.

Corporation Disadv.

Other Ways to Organize Cooperative Nonprofit franchise

This section objectives: Differentiate between the six types of businesses. Describe the five functions of business Discuss how the five functions of business relate to each other

Types of Businesses Producer Processor Manufacturer Intermediary—wholesale & retail Retail & service businesses

Functions of Business Production and procurement Marketing Management Finance Accounting

Production & procurement Production—process of creating, expanding, manufacturing, or improving goods and services. Procurement—buying and reselling goods that have already been produced.

Marketing Process of planning, pricing, promoting, selling, and distributing ideas, goods, and services

Management Process of achieving company goals by planning, organizing, leading, controlling and evaluating the effective use of resources

Finance and Accounting Finance-business or art of money management Accounting—maintaining and checking records, handling bills, and preparing financial statements of business

Interdependent Five functions are interdependent

End