6 Basic Activities of Business. Generate ideas Raise capital (owners equity or loans) Employing & Training personnel Buy goods & services Necessary equipment Accounting, legal & advertising services Marketing goods & services Maintain business records. Types of Businesses.
Producers- create the products and services used by individuals and other businesses.
Intermediaries- businesses involved in selling the goods and services of producers to consumers and other businesses.
Service Business- carries out activities that are consumed by its customers.
Service businesses are the fastest growing part of the U.S. economy. Currently, 60% of all businesses are service-producing businesses.
Easy to start
Make all business decisions
Taxed less than other forms
Must provide $ & management
Responsible for all debts
Unlimited Liability--Creditors can take your personal assets
Difficult to expandAdvantages & Disadvantages
May offer more money (expansion)
Taxed less heavily than a corporation
Owners may not agree, yet the actions of one partner are legally binding
Business is dissolved if one partner diesAdvantages & Disadvantages
Easy to expand
Easy to enter or leave
Owners receive dividends if profitable
Complex to form
Increased government regulation
Higher taxes on corporation & individuals
Detailed accounting & record keepingAdvantages & Disadvantages
Vanguard Cleaning Systems
Denny’s Entrepreneur Inc.