1. Manufacturing Business Converts materials into goods suitable for use and then sells them

2. Wholesaling Business Buys goods in large quantities typically from manufacturers and resells them in smaller batches to retailers

3. Retailing Business Buys goods, often from wholesalers and resells them direct to consumers

4. Service Business Provides services to customers for a fee.

5. Franchise Arrangement where an established company sells the rights for others to use the company name and operating plan to sell products or services.

6. Assignment Get the BusinessType.xls file from the BEP Files section of my website. Indicate which type of business for each business listed.

7. Liability Legal obligation of a business owner to use personal money and possessions to pay the debts of the business.

8. Unlimited Liability Business owner can be legally forced to use personal money and possessions to pay the debts of the business

9. Limited Liability Business owner cannot be legally forced to use personal money to pay business debts

10. Sole Proprietorship Single individual owns the business, collects all profit from it and has unlimited liability for its debt- Vast majority of businesses in US

11. Partnership At least two individuals share the management, profit and liability

12. Corporation Type of business ownership in which the business itself is considered a type of “person” under the law. Owners have limited liability.

13. Share of Stock Unit of ownership in a coporation

14. Shareholders Owners of a corporation

15. Dividend A portion of the corporations profits distributed to shareholders

16. C Corporation Taxed as an entity by the federal government Disadvantage- Income taxed twice

17. Incorporate To set up a corporation in accordance with the laws of the state where the business is located

18. Subchapter S Corp Not taxed as entity. Income or loss is applied to each shareholder and appears on their tax return. NOT taxed twice

19. LLC Limited Liability Company- Combines liability benefits of corporation with tax benefits of sole proprietorship

20. Cooperative Business owned, controlled, and operated for the mutual benefit of its members

21. Assignment Group Work- Sweet Opportunities