CHARACTERISTICS OF A BUSINESS TYPES OF BUSINESS The

CHARACTERISTICS OF A BUSINESS

TYPES OF BUSINESS The Service Business: A service business sells a service to the public. It does not make or sell a product as its main activity. Example: Hair Salon – they may sell shampoos & conditioners, but it’s ‘main activity’ (where they earn most of their money) is cutting hair.

TYPES OF BUSINESS The Merchandising Business: A merchandising business buys goods and resells them at a higher price for a profit. Example: The Bay, Wal-Mart, Best Buy

TYPES OF BUSINESS The Manufacturing or Producing Business A manufacturing business buys raw materials, converts them into a new product, and sells these products to earn a profit. Example: Apple, Samsung, Toyota

TYPES OF BUSINESS The Non-Profit Organization A non-profit organization may carry on activities to meet social needs and not for a financial profit. Example: Red Cross, World Wild Life Fund (WWF)

FORMS OF BUSINESS OWNERSHIP There are 3 main forms of business ownership: Sole Proprietorship – The owner is in business for her/himself. They may pay other wages, but keeps all other profits for her/himself. Partnership – This is a business involving more then one owner. Corporation (or limited company) – Business is owned by several people (dozens, hundreds or thousands) who each own a ‘share’ of the company.