Scribd
Upload
39 views15 pages

Present LP ABM

The document discusses three major types of businesses according to their activities: service companies, merchandising companies, and manufacturing companies. Service companies provide intangible services to customers. Merchandising companies buy and resell tangible goods, either directly to consumers as retailers or to other retailers as wholesalers. Manufacturing companies buy raw materials and convert them into finished products to sell.

Uploaded by

vincentradaza75
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
39 views15 pages

Present LP ABM

The document discusses three major types of businesses according to their activities: service companies, merchandising companies, and manufacturing companies. Service companies provide intangible services to customers. Merchandising companies buy and resell tangible goods, either directly to consumers as retailers or to other retailers as wholesalers. Manufacturing companies buy raw materials and convert them into finished products to sell.

Uploaded by

vincentradaza75
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 15

CHAPTER

TYPES
5: OF BUSINESS
ACCORDING TO ACTIVITIES

Prepared by: Ms. Jenica G.


INTRODUCTION

A business is an organization that converts inputs


or resources such as material, labor, and overhead
into outputs which are usually either goods or
services. In this chapter, we will discuss the different
types of business according to activities, their
business requirements, and their advantages and
disadvantages.
Three major types of business:

1. Service companies
2. Merchandising companies
3. Manufacturing companies
SERVICE
COMPANIES
• Service companies are firms that
generally use their employees to
provide intangible products or
services to customers. These services
include professional skills, advice,
expertise, and other related products.
(e.g. accounting firms, law firms, and
dry cleaning establishments, etc. )
Operating Cycle of Service
Companies
Cash on
hand

Receives Pays
payment employe
from es and
customer other
s expenses

Perform
s
Services
MERCHANDISING COMPANIES

• Merchandising companies sell tangible


products. This type of business buys
finished or almost finished goods from
their suppliers and resell the same to
customers.
• Primarily earn revenues from the sale of
the goods of merchandise, also known as
sales revenue or sales.
THERE ARE TWO TYPES OF MERCHANDISING COMPANIES:

• Retailer is a merchandising
company that sells goods
directly to customers.
• Wholesaler is a
merchandising company
that sells goods to retailers.
Operating Cycle of Merchandising
Companies
Cash on
hand

Receives
payment
from Buy
customer goods
s

Stores
Sell
goods as
inventory
s
inventory
MANUFACTURING COMPANIES

• Manufacturing companies or simply


manufacturers, buy materials, convert
them into products, and then sell
the e
products to other companies or to
th final consumers.
Operating Cycle of Manufacturing
Companies
Cash on
hand
Receives Pays for
payment inputs
from (materials
customer , labor,
s overhead)

Convert
s
Sell inputs
into
inventory finished
Store goods
finished
s
goods as

inventory
Type of Business According Advantages Disadvantages
to Activities

 Absence of inventory  Inability to standardize


Service  No production facilities services
 Maintaining human capital

 Visible products  Managing inventory


Merchandising  Less conversion, time,
and effort

 Quality control  Generally needs


 Visible products production facilities
Manufacturing  High conversion costs
 Cost of quality control
 Managing inventory
Group Activity: Have a group activity. Each group will consist of 4-5 pupils. Every group will be
given five minutes to answer the activity sheet. You have to classify the different business
according to its activities. Put a (/) check mark on the table provided as correspond to their
classification. I will present to the class the criteria or rubrics on how to evaluate your outputs.
After five minutes, the chosen group will present their work on the class and explain how do
they arrive at their answer.
Number of mistakes Equivalent Grade (%)

0 100

1 95

2 90

3 85

4-5 75
ACTIVITIES TYPES OF BUSINESS
Service Merchandise Manufacturing
1. Appliance Repair

2. Drug Store

3. Department Stores

4. House Cleaning

5. Candle Making

6. Grocery

7. Plumber Repair

8. Paper Making

9. Home Furniture

10. Chemical Industry


QUIZ
DIRECTION: Give at least 5 Name of Business for
every Type of Business. You have 10 minutes to
answer.
ASSIGNMENT
DIRECTION: Give at least 10
companies/businesses in their community and
classify them according to their type of business
as discussed above.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy