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Grade 10 Business
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What are the 5 types of Ownership?
Sole Proprietorship, Partnership, Corporation, Co-operative, Franchise
What is a Sole Proprietorship?
A business owned by 1 person who is known as the proprietor
Sole Proprietorship - What are the Pros?
Easy and inexpensive to set up
Full Control - Makes all the decisions
Keep ALL Profits
Quick decision making, don’t need to consult others
Sole Proprietorship - What are the Cons?
Limited access to funding - harder to get investors
Heavy workload- handle all responsibilities
Owner responsible for all losses - unlimited liability
Growth may be limited
What is a Partnership?
Type of business in which two or more individuals share the costs and responsibilities of owning and operating it
Partnership - What are the Pros?
Easy to start
Shared financial burden
Combined skills & expertise
Profits taxed as personal income - not through corporate tax
Partnership - What are the Cons?
Profit Sharing
Unlimited liability(in general partnership)
Personal issues, values, operations
If a partner wants to leave, may be difficult unless there’s an agreement in place
What is a Corporation?
A business granted legal status with rights, privileges, and liabilities that are distinct from those of the people who work for the business
What is a dividend?
Dividends are regular payments of profit made to investors who own a company’s stock
Name the 4 types of Corporations
Private Corporations, Public Corporations, Crown Corporations, Municipal Corporations
What is a Co-operative?
A business owned by workers or members who buy the products or use the services that the business offers. Motivated by service and not profit
Explain the benefits of Retail Co-Operative
You still own and make all business decisions
Instead of competing with larger businesses, you automatically gain a reputation through the co-op
Buy products at a lower price, but use their branding while benefiting from national advertising
All profits go to you
What are the cons of a retail cooperative?
Slow decision making
Balancing member interests
Market competition
awareness
member engagement
What is a Worker Co-operative?
Employees own and run the business together. They share profits and have an equal say in decisions
Pros & Cons of Consumer Co-op
Benefits:
Lower Prices
Ethical Products
Decision Making
Main Drawback
Membership fees
Less Independence
Slower Decisions
Pros & Cons of Retail Co-op
Benefits
Bulk Buying
Marketing
Support
Drawbacks
Less Independence
Pros & Cons of Worker Co-op
Benefits
Fair Wages
Democratic Decision Making
Drawbacks
Slower Decisions
What is a Franchise?
A franchise is a business model in which an independent entity – the franchisee – is entitled to set up a branch on an established brand.
Explain the process of a Franchise
A franchise is a business model where one person or company, called the franchisor, allows other people or companies, called franchisees, to open and operate a business using its name, products, and branding.
State the challenges a Franchisee can face
Limited Freedom & Flexibility
Strict Rules
Competition with other franchises
Brand Reputation