1. Types of Businesses

2. Fashion Industry Segments
Primary Market: includes the business that grow and produce the raw materials that become fashion apparel
Secondary Market: includes businesses that transform the raw materials into fashion in the merchandise production phase
Tertiary Market: includes retail businesses

3. Primary Market Textiles: largest segment of the primary market
Produces fibers, fabrics, leather, fur, plastic, metal, paper, and any other substance involved in production

4. Secondary Markets Manufacturers Wholesalers Contractors
Product Development Teams

5. Tertiary Market Retailers
Off-price, specialty stores, department stores, discount stores, variety stores, outlet stores, non-store retailers

6. Support Industries
Advertising Agencies, Accounting and Financial services, computer support industries, website design houses

7. Types of Fashion Business Organizations
Sole Proprietorship: one owner
Minimum license, complete owner liability
Owner owns all assets
Taxed as personal income
Most common form of business in small business

8. Types of Fashion Business Organizations
Partnerships
Based upon an agreement between two parties on how organization will be run, profits/loss split
Each partner is taxed separately
Each partner liable for debts
Ends at the death of one partner
Corporation

9. Types of Fashion Business Organizations
Corporation
Formed with a charter which is a legal document
Stocks and shareholders
Taxed as a separate entity
Limited liability for the owners
Corporation exists as a separate entity

10. Fashion Risks Types of risk: Economic risk Human risk Natural risk
Pure risk

11. Other Risks Types of risk: Speculative risk Controllable risk
Uncontrollable risk
Insurable risk
Uninsurable risk