Business Ownership and Formats

Comprehensive vocabulary regarding business ownership types, operational formats, e-commerce categories, franchising, and outsourcing models.

Business Ownership

The legal form under which a business is owned, controlled and operated, determined by who owns the heads/business, provides capital, receives profit, and bears losses.

Sole Proprietor

A business owned, managed and controlled by one ($1$) person.

Partnership

A form of business where $2$ or more persons agree to carry on a business and share its profit according to an agreement.

Joint Stock Company

A company organisation having a separate legal identity from its owners.

Cooperative Society

A voluntary association of persons who come together to meet common economic, social or other needs through a jointly owned and democratically controlled organisation.

Business Format

Describes how a business reaches and serves its customers, whereas ownership defines who owns the business.

Brick and Mortar Organisation

Businesses that operate through physical stores at a specific location and serve customers face to face.

Brick and Click Organisation

Businesses that operate at a specific physical location as well as online via websites and social networks to serve their customers.

Click Organisations

Businesses that operate solely online through websites or global app platforms with no physical presence or physical location.

Omni Presence

The presence style of Brick and Click organisations, covering both physical and online global coverage.

E-Commerce

The purchase and sale of goods, products, or services over the internet, including the transfer of money, funds and datas.

Business to Business (B2B)

A type of E-commerce where transactions occur between two businesses.

Business to Customer (B2C)

A type of E-commerce where businesses sell products directly to consumers.

Customer to customer (C2C)

A type of E-commerce where customers sell products or services to other customers.

Customer to Business (C2B)

A type of E-commerce where individual customers provide products or services to businesses.

Franchising

A business arrangement where the franchisor grants the franchisee the legal right to use its brand name, trademark, and business model in exchange for fees or royalty payments.

Franchisor

The party in a franchising agreement who grants the legal right to use their brand and operating system.

Franchisee

The party in a franchising agreement who receives the legal right to use a brand name in exchange for an initial fee and ongoing royalties.

Local Level Franchising

The process of expanding a business and distributing it within specific districts or states.

Outsourcing

The rental of skills and knowledge where $2$ companies enter an agreement for one to perform tasks, handle operations, and provide services.

Knowledge process outsourcing (KPO)

A classification of outsourcing involving the contracting of information-related business activities.

Business process outsourcing (BPO)

A classification of outsourcing involving the contracting of specific business task operations to a third-party provider.