1. Characteristics of a Business

2. 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

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

4. 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

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

6. 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

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

8. 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

9. 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?