HELE 4 Lesson 3 Types of Business Operations and Organizations

Pertains to an individual, a group of people, or an organization engaged in the trading of goods and services to customers in exchange for money or other items of equivalent value.

• Logistics

• Business

• Barter System

• Banking

Provides services to customers

• Hybrid

• Service

• Merchandising

• Manufacturing

Buys and sells products to customers

• Hybrid

• Service

• Merchandising

• Manufacturing

Converts raw materials using labor, tools, and processing machines to produce finished goods or products for other manufacturer’s use or for the consumer’s consumption.

• Hybrid

• Service

• Merchandising

• Manufacturing

The fourth type of Business Operation that offers manufacturing, merchandising and services

• Hybrid

• Service

• Merchandising

• Manufacturing

Is Owned by a single individual called proprietor.

• PARTNERSHIP

• CORPORATION

• SOLE PROPRIETORSHIP

• FRANCHISE

Is run by two or more individuals who join together.

• PARTNERSHIP

• CORPORATION

• SOLE PROPRIETORSHIP

• FRANCHISE

Is owned by shareholders. It is structured as a separate

legal entity under the operation of law.

• PARTNERSHIP

• CORPORATION

• SOLE PROPRIETORSHIP

• FRANCHISE

Uses another company’s successful business model

to create a shop, restaurant, etc.

• PARTNERSHIP

• CORPORATION

• SOLE PROPRIETORSHIP

• FRANCHISE

Advantages:

- cheap to organize

- easy to start and operate

• PARTNERSHIP

• CORPORATION

• SOLE PROPRIETORSHIP

• FRANCHISE