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Types of Business Activities

There are three main types of business activities: service businesses, merchandising businesses, and manufacturing businesses. Service businesses provide intangible products like professional skills or advice. Merchandising businesses buy products wholesale and sell them retail without altering the products. Manufacturing businesses transform raw materials through production processes to create new products.

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637 views1 page

Types of Business Activities

There are three main types of business activities: service businesses, merchandising businesses, and manufacturing businesses. Service businesses provide intangible products like professional skills or advice. Merchandising businesses buy products wholesale and sell them retail without altering the products. Manufacturing businesses transform raw materials through production processes to create new products.

Uploaded by

jennifer roslin
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Types of Business Activities

The three types of business activities are Service Business, Merchandising or Trading
Business and Manufacturing Business. In Service Business, is a type of business provides
intangible products (products with no physical form). Service type firms offer professional
skills, expertise, advice, and other similar products. Examples of service businesses are:
Business services, such as accounting, advisory, taxation, advertising, engineering, legal,
research agencies, computer programming, etc. Personal services, such as laundry, beauty
salon, photography. Automotive repairs, car rental, car wash, parking spaces, Fitness
facilities, amusement parks, bowling centers, golf courses, theatres, Hospitals and clinics,
schools, museums, banks, Hotel, lodging, and more. In Merchandising Business - This
type of business buys products at wholesale price and sells the same at retail price. They
are known as "buy and sell" businesses. They make profit by selling the products at prices
higher than their purchase costs. A merchandising business buys a product and sells it
without changing its form. Examples include all distribution and retail stores such as:
department store, grocery, hardware, clothes and accessories shop, consumer electronics,
home furniture, appliance stores, drug stores, etc. Manufacturing Business - Unlike a
merchandising business, a manufacturing business buys products with the intention of
using them as raw materials to make a new product. Thus, there is transformation of the
products purchased. A manufacturing business combines raw materials, labor, and
overhead costs in its production process. The goods produced will then be sold to
customers. Examples include: Food processing, such as producing canned meat, frozen
goods, dairy products, bottled drinks, also bakeries and oil mills,
Fabric mills and textile production from cotton, wool, polyester; and also clothing factories that
use textile as raw material, Wood and metal works, such as in building cabinets, tables, chairs,
Oil refineries, chemical labs, plastic and rubber production, Ship builders, aircraft manufacturers,
car makers, and many other producers and factories

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