Types of Business Ownership

1.03 Evaluate the role of different types of business and the various forms of business ownership in the US.

Extractors

• A business that grows products or takes raw materials from nature.

• Examples: farmers, silver and coal miners, copper and ore, lumber, fishermen

Manufacturers

• A manufacturer takes the extractor’s products or raw materials and changes them into a form that consumers use.

• Examples: manufacturing snow mobiles, cars, computers, clothing, electronic items

Processors

• A business that changes natural [raw] materials into a more finished form for manufacturers to process further.

• Examples: paper mills, oil refineries, steel mills, flour mills

Distribution Firms

• In what location and in what businesses will the product be sold?– Wholesalers: -middleman that assists with

distribution between businesses. Example: Sam’s Club

– Retailer: a firm that sells directly to the consumer. Example: WalMart, Target, etc.

Service Firms

• Firms that sell a service performed by a person.

• Examples: going to a movie, haircut, taking lessons, playing an arcade game, using the telephone, riding a bus.