Title: Describe the four types of businesses.
Course: Entrepreneurship Infusion Unit > Section: Understanding Business Ownership

Description should include characteristics of the four types of businesses:

- 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.
- Merchandising—buys products at wholesale price and sells the same at retail price; sells a product without changing its form. Examples include grocery stores, convenience stores, distributors, and other resellers.
- Service—provides intangible products. Examples include repair shops, banks, accounting firms, and law firms.
- Hybrid—classified in more than one type of business. These businesses 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).

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? Explain.
- What trends are occurring in the implementation of new businesses?
- How do manufacturing entrepreneurs make money?
- Is manufacturing still a viable path for an entrepreneur in the United States? Explain.
- What are some examples of manufacturers?
- What factors might an entrepreneur consider when deciding whether to offer a good, a service, or a combination of goods and services?
- What are some examples of businesses that provide services?