Types of Business Based on Activities

8/3/2019 Types of Business Based on Activities

1/14

Types of

Business

based on

Activities

Types of

Business

based on

Activities1. SERVICE BUSINESS

2. MERCHANDISINGBUSINESS

1. SERVICE BUSINESS

2. MERCHANDISINGBUSINESS


2/14

3.Manufacturing Business

3.Manufacturing Business

this converts raw materials, labor

and overhead into finished products

that are available for sale to

customers.

examples:

car Manufacturers

Electronic parts Manufacturers

Producer of drugs and other medical products


3/14

4.Other Business

4.Other Business

This includes businesses that cant

be classified as SERVICE,

MERCHANDISING or

MANUFACTURING BUSINESS.

Examples:

Agriculture and Mining companies

These companies are engaged in

producing or exploration of raw materials

such as plants and minerals.


4/14

TYPES OF BUSINESSACCORDING TO

OWNERSHIP STRUCTURES

TYPES OF BUSINESSACCORDING TO

OWNERSHIP STRUCTURES


5/14

1.SOLE PROPRIETORSHIP


The simplest form of business

Is a business that is owned by a SINGLE

INDIVIDUAL who has a full control and authorityin running this kind of business.

PROPRIETOR- the owner of the business.


6/14



Advantages

setting up and administering the business is

comparatively easy and inexpensive.

the tax is simplicity.

Own 100% of your business

receive all income generated by the business to keep or

reinvest.

The business is easy to dissolve, if desired.

Youre the one that runs your small business and no

one else can tell you what to do or how to do it.


7/14



Disadvantages

Sole proprietors have unlimited liability and are legally

responsible for all debt against the business.

raising funds and are often limited to using funds from

personal savings or consumer loans.

Raising capital can be quite difficult

continuity and transferability


8/14

.PARTNERSHIP2

.PARTNERSHIP

Is a business that is owned by two or more individual

partners.

Types of Partnership

A. General Partnership

each partner is jointly and severally liable for the debts of the

partnership

B. Limited Partnership

is an arrangement where a person can contribute to a business

without being involved in the affairs of the partnership.


9/14

2.PARTNERSHIP2

.PARTNERSHIP

Advantages:

A partnership can sign contracts and borrow money in its own right,

which eases some of the liability burden a sole proprietorship would bear.

tax simplicity

equal responsibility and authority to run the business.

A partnership may benefit from the combination of complimentary skills

of two or more people. There is a wider pool of knowledge, skills and

contacts.

Partnerships provide moral support and will allow for more creative

brainstorming.

relatively easy to establish; however time should be invested in

developing the partnership agreement. In a partnership agreement, the

following arrangements, among others, should be spelled out:

1. How the business will be financed.

2. Who will do what work.

3. What happens if a partner dies.

4. What happens if one or both partners want to dissolve the partnership.


10/14

2.PARTNERSHIP2

.PARTNERSHIP

Disadvantage:

As a partner, you can also be held responsible for any

wrongful act or omission by other partners acting in the

ordinary course of the firm's businessProfits must be shared with others. You have to decide

on how you value each others time and skills. What

happens if one partner can put in less time due to

personal circumstances?

The partnership may have a limited life; it may end

upon the withdrawal or death of a partner.

Since decisions are shared, disagreements can occur


11/14

3.CORPORATION

3.CORPORATION

Is a business that is owned by its shareholders.

is a legal entity separate from the persons that formed it

The shareholders elect a Board ofDirectors who hires

managers to manage the corporation

There are 3 characteristics of a Corporation:

Limited liability

Transferable shares

Centralized management under a board of

structure


12/14

3.CORPORATION

3.CORPORATION

A Corporation can be either stock or non-stock company

regardless of nationality.

Stock Corporation

This Corporation with capital stock divided intoshares and authorized to distribute to the holders

such shares dividends or allotments of the surplus

profits on the basis of the shares held.

Non-Stock Corporation

This is a Corporation organized principally forpublic purposes such as foundations, charitable,

educational, cultural or similar purposes and does

not issue shares of stock to its members


13/14

End of PresentationEnd of Presentation


14/14

Backdrops:

- These are full sizedbackdrops, just scale them up!

- Can be Copy-Pasted out of

Templates for use anywhere!

Title Backdrop Slide Backdrop Transitional Backdrop Print Backdrop

www .animationfactory .com

Additional Graphics:

-

Scale them up or down!- .GIF clipart is animated.

- .JPG clipart can be scaled

up and take up little file

space.

- .PNG clipart can be scaled

unusually large without

distortion.

Documents

Types of Business Based on Activities