Types of Busineses
A business that aims to make money for its owners is called a __________ business.
For Profit
In the simplest channel, goods move from __________ to __________.
Producer to Consumer
Which type of customer includes schools, hospitals, and government agencies?
Government/Institutions
A business owned by one person is called a __________.
sole proprietorship
Tax-funded businesses belong to which sector?
Public Sector
business that uses profits to support a public cause is known as a __________. List an example.
Not-for-Profit and Salvation Army
In which channel does a retailer buy directly from the producer before selling to consumers?
producer → retailer → consumer
Customers who buy products for personal use belong to which market?
Consumer Market (B2C)
A business owned by two or more people is called a __________.
Partnership
What are shares of ownership in a corporation called?
Stocks
Businesses run by individuals, not the government, belong to which sector?
Private Sector
Which channel includes all three: producer, wholesaler, and retailer? What is another word for wholesaler?
producer → wholesaler → retailer → consumer
Distributor or intermediary
Businesses that buy products to help run their own business belong to which market? Give an example.
Business Market (B2C)
EX: One specific store buying from another store
Who owns a corporation?
shareholders (or stockholders)
A lady who grows apples sells them to a wholesaler. Which category does this business fall under in the private sector?
She's a Producer
Government-run organizations funded by tax dollars belong to which sector? What is an example?
Public Sector
EX: school, brown bear, police department
Who typically buys large quantities of goods from producers and resells them to retailers?
Wholesaler
A salon buying shampoo to use on clients is an example of what type of customer?
business-to-business (B2B) customer
Which type of ownership has limited liability for its owners?
Corporation
What does “limited liability” mean for shareholders?
They can only lose the money they invested.
Name the three categories of private sector businesses and what they are known for.
Producers (create)
Intermediaries (sell)
Service Businesses (Do)
Why might a producer skip the wholesaler or retailer in their channel of distribution?
To increase profit or have more control over sales.
A person buying shampoo to use at home is what type of customer?
business-to-consumer (B2C) customer
Which two forms of ownership have unlimited liability?
sole proprietorships and partnerships
Compare for-profit and not-for-profit businesses in one sentence.
For-profit businesses earn money for owners, while not-for-profits use money to support public causes.