1. BUSINESSES
Produce
And sell
Goods or services
For consumers

2. BUSINESS PEOPLE

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

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

5. 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)

6. 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)

7. 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

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

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

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

11. 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