Unit 4 Flashcards
And organisation that generates revenue
for - profit business
organization that exists to serve some public purpose
not-for-profit organization
Schools military and Internal Revenue Service are a part of what SECTOR
public sector
all other organizations that provide goods and services are a part of what SECTOR
Private Sector
Producers Intermediaries and Service Bussiness are in what sector
Private sector
businesses that create goods and services
producers
businesses or people who take natural resources from the land
ectractors
Businesses that use supples from other producers to make products
Manufacturers
People that sell the goods and services from producers to customers
they make sure goods are in the right place
intermediaries
a business that purchases large quantities of products directly from producers and sells the products in smaller quantities to retailers
Wholesaler
businesses that buy products from wholesalers or directly from producers, and sell them to consumers to make a profit
retailer
earns profit by providing consumers with services that meet their needs and wants
service business
a numeric system used to classify businesses and collect economic statistics
North American Industry Classification System (NAICS)
consists of consumers who buy products for their own use
consumer market
businesses that sell primarily to individual consumers are in what market
B2C Business to Consumer
Consists of customers who buy products for use in a business
business market
businesses that sell primarily to other businesses are in what market
B2B business to business
this includes national state and local governmental offices and agencies
government market
nonprofit organizations that may be either public or private
ex. schools hospitals museums, and organizations like United Way and American Cancer Society
Institutions
a business that is owned and often operated by a single individual
proprietorship
What are the advantages of Propritorships
Easy to start and close, retain all profits, complete control of operation, simple tax structure
Disadvantages of a Proprietorship?
Unlimited Liability, Limited expertise, limited life of the business
legal responsibility
liability
the business owner is held personally responsible for all debts and losses of the business
unlimited liability
an association of 2 or more people who co-own a business with the objective of earning a profit
partnership
advantages of partnerships?
Easy start, combined financial resources, skills & resources x2, simile tax structure
disadvantages of partnerships
unlimited liability, limited life, potential disagreements
a business that is legally separate from its owners
a corporation
advantages of corporations
limited liability, ability to raise capital, continued life, transferring ownership, professional management
a share of the ownership in a corporation
stock
a portion of the corporation’s earnings distributed to stockholders
dividends
disadvantages of corporations
expensive to form, many gov. regulations, double taxation.
business ownership that provides limited liability to its owners, but is taxed like a partnership, can only have 100 share holders
s corporation
Alternative forms of ownership
s corporations, LLC, coorperatives
a form of business ownership that combines the benefits of a corporation with those of proprietorships and partnerships
LLC
a business that is owned & operated by those using its service
cooperatives
