Manufacturing Business Converts materials into goods suitable for use and then sells them
Wholesaling Business Buys goods in large quantities typically from manufacturers and resells them in smaller batches to retailers
Retailing Business Buys goods, often from wholesalers and resells them direct to consumers
Service Business Provides services to customers for a fee.
Franchise Arrangement where an established company sells the rights for others to use the company name and operating plan to sell products or services.
Assignment Get the BusinessType.xls file from the BEP Files section of my website. Indicate which type of business for each business listed.
Liability Legal obligation of a business owner to use personal money and possessions to pay the debts of the business.
Unlimited Liability Business owner can be legally forced to use personal money and possessions to pay the debts of the business
Limited Liability Business owner cannot be legally forced to use personal money to pay business debts
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
Partnership At least two individuals share the management, profit and liability
Corporation Type of business ownership in which the business itself is considered a type of “person” under the law. Owners have limited liability.
Share of Stock Unit of ownership in a coporation
Shareholders Owners of a corporation
Dividend A portion of the corporations profits distributed to shareholders
C Corporation Taxed as an entity by the federal government Disadvantage- Income taxed twice
Incorporate To set up a corporation in accordance with the laws of the state where the business is located
Subchapter S Corp Not taxed as entity. Income or loss is applied to each shareholder and appears on their tax return. NOT taxed twice
LLC Limited Liability Company- Combines liability benefits of corporation with tax benefits of sole proprietorship
Cooperative Business owned, controlled, and operated for the mutual benefit of its members
Assignment Group Work- Sweet Opportunities