Comparing trading and service businesses with examples

Question 1

What are the 2 types of trading businesses

Answer 1

1. Wholesalers
2. Retailers

Question 2

What are the 3 types of service businesses

Answer 2

1. Personal
2. Community
3. Commercial

Question 3

Explain the 2 types of trading businesses

Answer 3

1. Wholesalers - buy product in bulk from the factories e.g farmers markets and Macro
2. Retailers - Buy products from wholesalers and sell it in smaller quantities e.g Pick n Pay and WoolWorthes

Question 4

Explain the 3 types of service businesses

Answer 4

1. Personal - Consumer uses services for personal use e.g dentists and ahirdressers
2. Community - The government controls these sectors so the municipalities provide these services and people pay indirectly for the services e.g water and electricity
3. Commercial - Activities invloved in getting goods and services to the consumer e.g Mr Delivery, FedEx and Takealot