Large or Small Most businesses are either small- or medium-sized. A small- or medium-sized business (SMB) is defined as any business that employs fewer that 500 people. There are over one million SMBs in Canada, employing more than 60 percent of the workforce Forms of Business Ownership A business can also be described informally by how it’s owned. Sole proprietorship- owned by one person Partnership- usually owned by two or more people Corporation- business is an artificial “person” created by law and is owned by shareholders. Co-operative- owned by its workers or by members who buy from the business Franchise- one business licenses another to use its name, operating procedure, and so on. As a hybrid, can have any form of ownership. Goods or Services A business can be classified by the good that it produces or services that it offers. Canadian businesses provide a wide range of products and services to consumers. Channels of Distribution A business can also be classified by how it delivers its goods or services. Some businesses, such as retail are “brick and mortar”. Customers go to a building to buy a product or use a service. Other businesses distribute their products and services through channels such as telephone marketing, catalogues or e-commerce. Role in the Community A business can be classified by the different functions that it performs in the community. For example, the Canadian Diabetes Association offers support and raises funds to help people in need. Jobs Finally, the types of jobs that it provides can classify a business. For example, a health club provides jobs to personal trainers, front desk workers, office workers, and so on. The Role of the Consumer Most businesses provide goods or services designed to satisfy consumer needs and wants. Producers are the businesses that make goods and provide services.
Consumers are the people who buy goods and services. Companies that can attract more consumers to their business will have more opportunities to generate sales. Producers and consumers operate together to create a marketplace. A marketplace is any location where producers come together to engage in the buying or selling of goods and services, such as a mall, farmers market, or a restaurant. The consuming habits of Canadian tell businesses what goods and services consumers want, when they want they, and how much they are willing to pay. Businesses use this info as well as their own research to provide goods and services that satisfy these demands. However, they can only do so if it is profitable for them. When businesses produce whatever they want, we say that businesses are in control of the market. When consumers influence what businesses produce, we say that consumers are in control of the market. In today’s business climate, the consumer plays a vital role in what the business choses to produce and how they deliver their products and services.
- Fall '17
- Business, Supply And Demand, Economic Resources