Weeks 1-2: Topic 4 Entrepreneurship: Businesses - pg. 39 - 40 (Types of businesses)

Question 1

What is a trading business?

Answer 1

Trading businesses sell products, which are made by other businesses/people, directly to the consumer. They buy products at a certain price from their suppliers and sell them at a higher price to their consumers to make a profit.

Question 2

What can trading businesses also be called?

Answer 2

Retailers.

Question 3

Give 3 examples of trading businesses.

Answer 3

1. Foschini - a clothing shop
2. Toys-R-Us - a toy shop
3. CNA - a craft/bookshop

Question 4

What is a manufacturing business?

Answer 4

A manufacturing business makes products that other people/businesses need/want. They turn raw materials/semi-finished goods into finished products such as food, clothes, tools, cars, machinery and furniture.

Formal manufacturing businesses usually operate from well-equipped factories, while informal manufacturers could operate from home. Manufacturers could sell to other businesses/directly to the public.

Question 5

Give 2 examples of manufacturing businesses.

Answer 5

1. Parkhome Modular Units

2. Pacmax packaging specialists

Question 6

What is a service business?

Answer 6

Service businesses sell their skills and time to other businesses/people. They provide a service and charge a fee for their services.

Formal service businesses often operate from business premises but can also operate from home. Informal businesses often operate from home/ from a temporary structure on pavements/ at market places.

Question 7

Give 4 examples of service businesses.

Answer 7

1. Hairdressers
2. Beauty consultants
3. Doctors
4. Motor mechanics