Types of Business
Provides a service rather than a physical product.
Service Business
This type of business is owned by one person and is the easiest to start.
Sole Proprietorship
Legal responsibility for debts or damages
Liability
Day to Day running of the business.
Operations
What kind of business is Phongs?
Service Business
Buys finished goods and resells them
Merchandising Business
This ownership structure involves two or more people sharing responsibility.
Partnership
Owner is personally responsible.
Unlimited Liability
Promoting and selling products.
Marketing
What kind of business is Target?
Merchandising Business
Uses raw materials to create finished products.
Manufacturing Business
This business type has shareholders and offers the strongest protection from personal liability.
Corporation
Owner is NOT personally responsible - only the business is.
Limited Liability
Managing Money.
Finance
What kind of business is Hershey?
Manufacturing Business
Provides services without profit as the main goal.
Nonprofit
This business model sells the rights to use its name, products, and business system.
Franchise
Sole Proprietorships & Partnerships generally use this type of liability.
Unlimited Liability
Hiring, training, and evaluating employees
What kind of business is the American Red Cross?
Nonprofit Organization
Provide public services funded by taxes.
Government Agencies
This organization is mission‑driven and does not aim to earn profit.
Nonprofit
LLCs, Corporations, and most Franchises generally use this type of liability.
Limited Liability
Planning, organizing, and making decisions.
Management
What kind of business is the USPS? (United States Postal Service)
Government Agency