Intro to Business. Classifying Businesses. BEC 10

1. Business
Fundamentals
Introduction to Types of Business

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 (can’t 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