Introduction to Businesses and Business types
BBI20-INTRODUCTION TO BUSINESS
Unit 1 BUSINESS FUNDAMENTALS
Business Categories and Types of Business Ownership
Learning Goals:
I will be able to describe and give examples of the two business categories.
I will be able to describe and give examples of the five types of business ownership.
A business: Produces and/or sells goods and services to customers/consumers
Business Categories
1. For Profit: makes money (most businesses under this category)
2. Not for Profit: Helps others ( most government agencies go under this category)
Five Types of Business Ownership
1. Sole proprietorship: A business owned by a single person
What is meant by unlimited liability? - Law doesn’t differentiate between the person owning the business and the business.
2. Partnership: A business that is operated by two or more partners who share costs and responsibility.
What are general partners? – Active partners that are involved in the business (also have unlimited liability) What are limited/silent partners? – “limited” (silent) partners are investors and not involved in the business. They have limited liability.
What is meant by limited liability? – Having limited responsibility - Not personally responsible for the debts of the business
3. Corporations: - Provincial/ federal, highly regulated, name must include: Incorporation(Inc), Corporation(Corp), or Limited(Ltd)
What is meant by being highly regulated?
- The responsibility of following many rules and also not taking advantage of investors
Can a corporation be small? - Yes, a corporation doesn’t have to be a huge business.
What is a share/stockholder? - Share/stockholder is an investor who puts money into ownage of a percentage/part of the corporation.
Would you be able to sue a corporation? Why? - Yes, since the corporation is
Unit 1 BUSINESS FUNDAMENTALS
Business Categories and Types of Business Ownership
Learning Goals:
I will be able to describe and give examples of the two business categories.
I will be able to describe and give examples of the five types of business ownership.
A business: Produces and/or sells goods and services to customers/consumers
Business Categories
1. For Profit: makes money (most businesses under this category)
2. Not for Profit: Helps others ( most government agencies go under this category)
Five Types of Business Ownership
1. Sole proprietorship: A business owned by a single person
What is meant by unlimited liability? - Law doesn’t differentiate between the person owning the business and the business.
2. Partnership: A business that is operated by two or more partners who share costs and responsibility.
What are general partners? – Active partners that are involved in the business (also have unlimited liability) What are limited/silent partners? – “limited” (silent) partners are investors and not involved in the business. They have limited liability.
What is meant by limited liability? – Having limited responsibility - Not personally responsible for the debts of the business
3. Corporations: - Provincial/ federal, highly regulated, name must include: Incorporation(Inc), Corporation(Corp), or Limited(Ltd)
What is meant by being highly regulated?
- The responsibility of following many rules and also not taking advantage of investors
Can a corporation be small? - Yes, a corporation doesn’t have to be a huge business.
What is a share/stockholder? - Share/stockholder is an investor who puts money into ownage of a percentage/part of the corporation.
Would you be able to sue a corporation? Why? - Yes, since the corporation is