Classifying Businesses - BEC 10
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Transcript of Classifying Businesses - BEC 10
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Business FundamentalsIntroduction to Types of Business
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What is a Business?
A business is an organization that produces and/or sells goods and/or
services to satisfy the needs, wants, and demands of consumers.
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How to Classify Businesses
There are many ways to classify businesses.
For-Profit OR Not-for Profit Size Form of Ownership Goods or Services Distribution Method Role in the Community and Jobs
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1. For-Profit OR Non-Profit
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A For-profit Business
An organization that produces or sells goods or services to satisfy the needs, wants, and demands of consumers for the purposes of making a profit
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For-Profit Business
Definitions: Profit: money left after all expenses have been
paid Expenses: money spent on running the business
(wages, supplies, etc.) Costs: money spent for the production of the
good or service
Businesses try to keep profits up by keeping costs and expenses down.
Profit = Revenue – Expenses
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Non-Profit and Not-For-Profit
NP: does not look to make profit, but raises funds for a specific goal (charities, charitable organizations)
Examples: Salvation Army, UNICEF
NFP: does not seek to make profit, extra monies used to improve services
Examples: Victoria Cool Aid Society, Victoria Hospice
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2. Size of Business
Small Medium Large
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3. Type of Ownership Single Proprietorship (single owner)
Owned by one person Partnership
Two or more people Corporation
Owned by investors called shareholders Cooperative
Owned by members Franchise
Franchisee buys a franchise from a large corporation or franchisor.
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4. Goods or Services Goods: items of monetary value that have been produced.
eg. Television, Paint Goods are TANGIBLE (can touch them)
Services: Tasks performed by businesses for consumers. eg. Lawn Mowing, Delivery Services are INTANGIBLE (can’t touch them)
Businesses can sell both goods and services
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Goods or Services?
Businesses that sell goods Businesses that provide services
Businesses that do both.
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5. Distribution
How are goods & services delivered? Bricks and mortar business telemarketing catalogue online.
Examples?
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6. Role in the Community and Jobs
What role does the business play in the community?
What types of jobs does the business offer/employ?
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Assignment
Go to Blackboard and download the Notes Document Complete Part A and B