Introduction to Types of Business
What is a Business?
A business is an organization that produces
and/or sells goods and/or services to satisfy
the needs, wants, and demands of consumers.
How to Classify Businesses
There are many ways to classify businesses.
For-Profit OR Not-for Profit
Form of Ownership
Goods or Services
Role in the Community and Jobs
A For-profit Business
An organization that produces or sells goods or services
to satisfy the needs, wants, and demands of consumers
for the purposes of making a profit
Profit: money left after all expenses have been paid
Expenses: money spent on running the business (wages,
Costs: money spent for the production of the good or
Businesses try to keep profits up by keeping costs and
Profit = Revenue – Expenses
Non-Profit and Not-For-Profit
NP: does not look to make profit, but raises funds for
a specific goal (charities, charitable organizations)
Examples: Salvation Army, UNICEF
NFP: does not seek to make profit, extra monies used
to improve services
Examples: Victoria Cool Aid Society, Victoria Hospice
3. Type of Ownership
Single Proprietorship (single owner)
Owned by one person
Two or more people
Owned by investors called shareholders
Owned by members
Franchisee buys a franchise from a large corporation or
4. Goods or Services
Goods: items of monetary value that have been produced.
eg. Television, Paint
Goods are TANGIBLE (can touch them)
Services: Tasks performed by businesses for consumers.
eg. Lawn Mowing, Delivery
Services are INTANGIBLE (can’t touch them)
Businesses can sell both goods and services
Goods or Services?
Businesses that sell goods
Businesses that provide services
Businesses that do both.
How are goods & services delivered?
Bricks and mortar business
6. Role in the Community and Jobs
What role does the business play in the community?
What types of jobs does the business offer/employ?
Go to Blackboard and download the Notes Document
Complete Part A and B