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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

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.

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.
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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.

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.