WEEK 5 – TYPES OF BUSINESS ACCORDING TO ITS ACTIVITIES Flashcards
- one of who renders services for a fee
- short term and long term service arrangements depending on what business is established
SERVICE BUSINESS
a business that provides haircuts and styling; and also the type of
business does a consultant who advises businesses on financial planning operate. Its benefit is to have direct customer interaction
SERVICE BUSINESS
ADVANTAGES OF SERVICE BUSINESS
- Low overhead costs
- High flexibility
- Direct customer interaction
- . Knowledge-based value
EXAMPLES OF BUSINESS ESTABLISHMENTS FOR
SERVICE BUSINESS:
- barber shops / beauty parlors
- repair shops
- banks
- law firms
It is a type of business that buys from suppliers and sells product to customers
MERCHANDISING BUSINESS
They also buys good at wholesale and later sells the products as retail. They make profit by selling the products at prices that are higher than their purchase costs
MERCHANDISING BUSINESS
ADVANTAGES OF MERCHANDISING BUSINESS
- Faster sales turnover
- Established product lines
- Visual merchandising opportunities
- Market reach
EXAMPLES OF BUSINESS ESTABLISHMENTS FOR
MERCHANDISING BUSINESS:
- book stores
- sari-sari store
- hardware
This type of business produces goods for sale
MANUFACTURING BUSINESS
This also the type of business that buys raw materials and uses them in making new product, therefore combining raw materials, labor and expenses into a product for sale later on
MANUFACTURING BUSINESS
a business that have quality control because there is an ability to
closely manage production processes to ensure consistent product quality
MANUFACTURING BUSINESS
ADVANTAGES OF MANUFACTURING BUSINESS
- Economies of scale
- Quality control
- Product differentiation
- Innovation potential
EXAMPLES OF BUSINESS ESTABLISHMENTS FOR
MANUFACTURING BUSINESS:
- book publishers
- furniture shops
- breweries (e.g. San Miguel Corporation)
- bakeries
