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Classifying Businesses - BEC 10

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A business is an organization that produces and/or sells goods and/or services to satisfy consumer needs, wants, and demands. There are many ways to classify businesses, including for-profit or non-profit status, size, form of ownership, whether they deal in goods or services, distribution method, and role/jobs in the community. For-profit businesses aim to make a profit after expenses, while non-profits and not-for-profits do not seek profit and instead raise or re-invest funds. Businesses can also be classified based on size, ownership structure, tangible goods versus intangible services offered, and distribution method.

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Business Fundamentals 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 Size Form of Ownership Goods or Services Distribution Method Role in the Community and Jobs
1. For-Profit OR Non-Profit
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
For-Profit Business Definitions: Profit: money left after all expenses have been paid Expenses: money spent on running the business (wages, supplies, etc.) Costs: money spent for the production of the good or service Businesses try to keep profits up by keeping costs and expenses down. 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
2. Size of Business Small Medium Large
3. Type of Ownership Single Proprietorship (single owner) Owned by one person Partnership Two or more people Corporation Owned by investors called shareholders Cooperative Owned by members Franchise Franchisee buys a franchise from a large corporation or franchisor.
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 (cant touch them) Businesses can sell both goods and services
Goods or Services? Businesses that sell goods Businesses that provide services Businesses that do both.
5. Distribution How are goods & services delivered? Bricks and mortar business telemarketing catalogue online. Examples?
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?
Assignment Go to Blackboard and download the Notes Document Complete Part A and B

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Classifying Businesses - BEC 10

  • 2. 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.
  • 3. How to Classify Businesses There are many ways to classify businesses. For-Profit OR Not-for Profit Size Form of Ownership Goods or Services Distribution Method Role in the Community and Jobs
  • 4. 1. For-Profit OR Non-Profit
  • 5. 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
  • 6. For-Profit Business Definitions: Profit: money left after all expenses have been paid Expenses: money spent on running the business (wages, supplies, etc.) Costs: money spent for the production of the good or service Businesses try to keep profits up by keeping costs and expenses down. Profit = Revenue Expenses
  • 7. 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
  • 8. 2. Size of Business Small Medium Large
  • 9. 3. Type of Ownership Single Proprietorship (single owner) Owned by one person Partnership Two or more people Corporation Owned by investors called shareholders Cooperative Owned by members Franchise Franchisee buys a franchise from a large corporation or franchisor.
  • 10. 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 (cant touch them) Businesses can sell both goods and services
  • 11. Goods or Services? Businesses that sell goods Businesses that provide services Businesses that do both.
  • 12. 5. Distribution How are goods & services delivered? Bricks and mortar business telemarketing catalogue online. Examples?
  • 13. 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?
  • 14. Assignment Go to Blackboard and download the Notes Document Complete Part A and B