Title: Identify the four types of businesses.
Course: Principles of Business and Marketing (12051-18) > Section: Exploring the Core Concepts of Business and Marketing

Identification should include describing the characteristics of the four types of businesses:

- Service—provides intangible products (e.g. repair shops, banks, accounting firms, law firms)
- Merchandising—buys products at wholesale price and sells the same at retail price; sells a product without changing its form (e.g. grocery stores, convenience stores, distributors, other resellers)
- Manufacturing—buys products with the intention of using them as materials in making a new product. Combines raw materials, labor, and factory overhead in its production process. Manufactured goods are sold to customers.
- Hybrid—classified in more than one type of business; may be classified according to their major business interest. For example, a restaurant combines ingredients in making a fine meal (manufacturing), sells a cold bottle of refreshment (merchandising), and fills customer orders (service). Restaurants would therefore be classified as a service business since they provide dining services as their major interest.

Process/Skill Questions:

- What is the relationship among the four types of businesses?
- What are some examples from the local community of each type of business?
- Is one type of business more important than the others? Why, or why not?
- What trends are occurring in the implementation of new businesses?