1. Types of Businesses

2. Producers
A person or business enterprise that generates goods or services from the development of raw material to the finished product
Example
Restaurant

3. Raw Goods Producer Extract raw materials for use in usable products
Example
Farmer
Miner

4. Manufactures
Takes raw materials from outside the company and turns them into a form that consumers can use
Examples
Textile mill – turns cotton into yarn and then to cloth
Automobile plant – General Motors

5. Trade Industries
Service Producing Industry – Provide task or a service for money.
Healthcare facility
Insurance company
Retail Stores
Goods Producing Industry – Provide a tangible item for money. (something you can touch and take with you)
Manufacturing
Mining
Agriculture

6. Retailers
The final business organization in an indirect channel of distribution
Types
Department Store - Dillards
Discount Store - Target
Specialty Store – Foot Locker
Super Market – Brookshire Brothers
Convenience Store – Stop and Go
Specialty Superstore – Home Depot
Factory Outlet - Nike
Hypermarket - Costco
Non-store (online)Shopping - Amazon
Retailers are the final business organization in an indirect channel of distribution. They provide products to the customer through many different types of stores. One category for retailers includes the product mix which identifies the store based on the items sold. Another category indicates the type of retailer based on location. Each of these meets a market and provides the goods desired by the customer.

7. Wholesalers
Companies that assist with the distribution activities between businesses
Examples:
United Distributing (food)
FTD (florist)
Sam’s Club

8. Service Business A business firm that does things for the consumer
Examples
Airline – Southwest
Moving Company – Mayflower
Hair stylist

9. Private Enterprise
Individual owned business with limited government direction
Businesses decide what to produce
Consumers decide what to purchase
Government regulates unfair business practices
Since a pure market economy does not exist, most countries with limited government influence refer to their economy as a private enterprise. The United States is the best example of this type of economy with the limited amount of government intervention.
Since a pure market economy does not exist, most countries with limited government influence refer to their economy as a private enterprise. The United States is the best example of this type of economy with the limited amount of government intervention.

10. Forms of Business Ownership
Sole Proprietorship
Individuals who want to work and make decisions independently
Little government regulation
Great risk for the owner
More than 50% fail in the first year.
Ask students to list a business that they would feel comfortable operating as a sole proprietor. Then ask students to explain why they are qualified.
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11. Forms of Business Ownership
Partnership
The partnership is owned and controlled by two or more people.
Partners share an idea for a business.
Partners want to cooperate in managing and investing, and want to share the risks and rewards of the business.
Disadvantages include unlimited liability, uncertain life, and disputes among the partners.
Unlimited Liability – full legal and financial responsibility for a business.
Ask students to list the risks involved with partnerships. Explain how partners have unlimited liability in the partnership. Unlimited liability-full legal and financial responsibility for a business

12. Forms of Business Ownership
Corporation
Separate legal entity owned by one or more shareholders (or stockholders) and managed by a board of directors
Most complex and difficult to form
Subject to more regulations
Limited liability for investors – profits and losses are generated through the corporation’s operations.
Can live beyond the life spans of its owners because ownership can be transferred through a sales or gift of shares.
Stock – shares of ownership in a corporation.
Corporation-a business treated by law as separate from its owners. Ask students to list three corporations that they think are good investment choices. Later they can look up the most current stock price for each corporation on the internet on listed in the newspaper.