1. Enterprises
Concept of Enterprise
Definition of “enterprise”

2. Forms of Enterprise Sole-proprietorship Partnership Corporations
There are three major forms of enterprise:
Sole-proprietorship
Partnership
Corporations

3. Sole proprietorships Single person owns the business
Not separate from its owner in terms of responsibility and liability
The business is the owner and the owner is the business

4. Partnership Owned by two or more people
Similar to a sole proprietorship
Not separate from the owners in terms of responsibility and liability

5. Corporations Legally separate and financially separate from the owners
Ownership in a corporation is divided into units called shares of capital stock
Owners are called shareholders or stockholders
Corporations are separate legal entities

6. Characteristics of Enterprise

7. Four Types of Enterprise
Service organization – provides services (does something for you) rather than selling something
Merchandising business – buys goods, adds value to them, then sells them to customers
Manufacturer – makes the products it sells
Financial services company – doesn’t make tangible products and doesn’t sell products made by other companies; deals in services related to money

8. Resources in an Enterprise
Major resources：
Human resources
Properties, plant and equipment, supplies, raw materials, finished products or inventories
Financing
In cash or bank deposits
In material forms

9. Case for Discussion Marks and Spencer
In 1882, a Russian refugee named Michael Marks came to the North East of England. Needing work, he put a tray round his neck and started selling haberdashery in the villages around Leeds. Two years later he borrowed ￡5 from his friend Isaac Dewhirst to buy stock, and was able to open a stall in Leeds market.
Within ten years Marks’s success as a trader had enabled him to establish a chain of stalls in markets throughout North East England. In 1894, Marks realized that his business was getting too large for him to manage effectively on his own. He decided to form a partnership with Tom Spencer – and Marks & Spencer was born.

10. Case for Discussion (cont)
The business continued to thrive and grow, so in 1903 Marks and Spencer registered their partnership as a private limited company. This allowed more people to become involved with managing the growing company and increase its finances by buying shares in the company. One shareholder was Israel Sieff, who became chairman of the company in Sieff can be credited with shaping the future of Marks & Spencer. By 1926, Marks & Spencer had opened 125 stores. In order to continue its successful development the company finally registered as a public limited company (plc) in order to obtain as much capital as possible to finance its continued growth.
And the rest, as they say,
is history.

11. Suggested Questions
How many people started the original business that eventually became Marks & Spencer?
Who owned the original business?
Who owns Marks & Spencer plc?
Why do you think Marks & Spencer became a public limited company?
Do you think the business would have developed in the way it has if it was still owned by one person?