Business Types
this type of business takes natural resources directly from the earth
What are extractors?
The simplest form of business ownership with minimal legal requirements
What is a proprietorship?
This organizational principle ensures clear reporting lines
What is unity of command?
The number of U.S. businesses with no employees
21.7 million
The process of obtaining money to start or expand a business
What is raising capital?
Professionals like doctors and lawyers fall into this business category
What are service businesses?
A business owned by two or more people with shared responsibilities
What is a partnership?
The right to make decisions about how tasks are accomplished
What is authority?
How businesses contribute to community development
Creating jobs, generating tax revenue
How businesses identify potential market opportunities
What is generating ideas?
These businesses convert raw materials into finished products
What are manufacturers?
This business type requires shareholders and a board of directors
What is a corporation?
A short statement describing a business's purpose and goals
What is a mission statement?
Primary ways businesses generate income for communities
Taxes, employment, income generation
The method businesses use to track financial performance
What is maintaining business records?
Businesses that buy and sell goods without manufacturing them
What are intermediaries?
A business arrangement where two companies work together temporarily
What is a joint venture?
The number of employees assigned to a specific manager
What is span of control?
Percentage of U.S. businesses with less than 20 employees
Approximately 5.8 million
Steps involved in promoting goods and services
What is marketing goods and services?
Name the three primary types of businesses discussed in the presentation
Producers, Extractors,Manafactuers
Explain the key differences between a proprietorship and a corporation
Proprietorship is owned by one person with personal liability; Corporation is owned by shareholders with limited liability
Compare and contrast functional and matrix organizational structures
Functional structure organizes by business functions; Matrix structure organizes around projects/products
Describe the overall economic significance of small businesses
Small businesses drive innovation, create jobs, and contribute significantly to local economies
List and explain 1 of 6 key business activities mentioned in the slides
Generating ideas, raising capital, employing personnel, buying goods/services, marketing, maintaining records