BBI120 Forms of Business Structures – Part II

Forms of Business Structures:

· Sole Proprietorship

· Partnership

· Corporation

· Co-operative

· Franchise

Co-operative

· A type of business owned by ________________ or by the members who buy the products or use the services the business offers

· Motivation is _____________, not profit

· Shares are owned by members of the co-op

· Each member has only _________ vote (unlike a corporation)

· Profits are distributed according to how much each member has _________ at the co-op

Examples of Co-operatives

· Many Canadian examples in____________, child care and health care

· Local example:

· Credit Unions

Franchise

· An arrangement where one business (the_______________) licenses the rights to its name and ________________ to another person or business (the franchisee)

Terminology

Franchisor

· The ___________ company who grants the franchise and provides goods/services to the franchisee

Franchisee

· An individual (or group) that runs a franchise operation

· Franchises are popular in the business community

· Examples include:

· McDonalds

· _______________

· Best Western hotels

Franchise – How It Works

· A franchisee must meet requirements including the payment of a ___________________

· More successful business = ________________ franchise fee

· The franchisee must also pay:

· A ____________ fee to the franchisor which is usually a % of ___________

· Advertising costs

· Franchisee is also usually required to buy all ________________ and product directly from the franchisor