Types of Businesses

What is Business? All the activities involved in producing and marketing goods and services Ex. Kroger, Ford

TYPES OF BUSINESSES LARGE VS. DOMESTIC VS. PROFIT VS. PUBLIC VS. GOODS VS. SMALL GLOBAL NONPROFIT PRIVATE SERVICES

LARGE VS. SMALL LARGE - Over 100 employees - Have many different departments - Ex. Richs, Macys, Ford, Chevrolet, Kmart, Wal-Mart SMALL - Less than 100 employees - Small budgets and staffs - 95% of U.S. business - Ex. Florists, gift shops, “Mom & Pop” stores

DOMESTIC VS. GLOBAL DOMESTIC - Buyers in single country - Businesses who stay only domestic face losing business - **Zaxby’s GLOBAL - Exchange among nations - Internet makes this easy - **McDonalds

PROFIT VS. NONPROFIT PROFIT - Earn a profit for the business they conduct - Biggest reason people start businesses - Ex. Microsoft: $12 billion in 2000 NONPROFIT - Still hire employees and pay expenses - All $$ left after expenses goes to charity - Ex. Boys/Girls Club, American Red Cross

PUBLIC VS. PRIVATE PUBLIC - Operate as businesses do but do not intend to make $$ - Ex. Government agencies such as public schools and libraries PRIVATE - All businesses not associated with government agencies

GOODS VS. SERVICES GOODS - Businesses that sell goods - Cars, food, clothing - Ex. Gap, Publix SERVICES - Businesses that provides services - Dry Cleaning, Car Repair - Ex. Maaco, Hangers Dry Cleaning

CAN YOU FIGURE THESE OUT? 1) FORD Large or Small 2) LARRY’S EASY PAY Domestic or Global 3) AMERICAN CANCER SOCIETY Profit or NonProfit 4) WINDER-BARROW HIGH SCHOOL Public or Private 5) TEXACO Goods or Services

The different types of businesses are… LARGESMALL DOMESTICGLOBAL PROFITNON-PROFIT PUBLICPRIVATE GOODS SERVICES

Types of Business Ownership Sole Proprietorship-owned by one person (76% of all businesses in U.S.) Partnerships –General Partner –Limited Partner-liable up to investment Corporations –C-corporation (corporation/shareholders pay taxes –S-corporation (taxed like a partnership-profits taxed at personal tax rate) –LLC- simpler than a corp. protects owners from liability suits See pg., 143 for comparisons

THE END!!!!