SYSTEMS PLUS COLLEGE

College of ArtsFOUNDATION
and Social Sciences and Education

LESSON PLAN IN ORGANIZATION AND MANAGEMENT

TYPES OF BUSINESS

I. OBJECTIVES

At the end of the lesson, students should be able to:

1. Define the three major types of businesses: service business,

merchandising business & manufacturing business.
2. Understand how each type of businesses differs or interrelated.
3. Categorize the business according to its type.

II. SUBJECT MATTER

Topic : The three major type of businesses Reference

: http://www.accountingverse.com/accounting-
basics/types-of-businesses.html

Materials : Power Point Presentation

III. PROCEDURE
A. DAILY ROUTINES
1. Prayer
2. Checking of attendance

B. PREPARATION
1. Greet the students
2. Explained the House Rule

C. MOTIVATION

The teacher will present a video presentation

D. LESSON PROPER
Introduce the topic then start the discussion.

A business entity is an organization that uses economic resources

or inputs to provide goods or services to customers in exchange for
money or other goods and services. Business organizations come in
different types and different forms of ownership. There are three major
types of business activities, what are those?

First is Service Business, this is the type of business that

provides intangible products (products with no physical form). A
service type firms offer professional skills, expertise, advice and other
similar products. They do not sell goods.
  Examples of service businesses are: schools, repair
shops, hair salons, banks, accounting firms and law
firms.

Second is Merchandising Business, this is the 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 sells a product without changing its form.

 Examples are: grocery stores, convenience stores,

distributors and other resellers.

Third is Manufacturing Business. Unlike merchandising

business, a manufacturing business buys products with the intention of
using them as materials in making a new product. Thus, there is a
transformation of the products purchased. A manufacturing business
combines raw materials, labor and factory overhead in its production
process. The manufactured goods will then be sold to customers.

 Examples are: pharmaceutical companies, mobile

companies, electronics and the like.

However, some business may be classified in more than one type

of business. A restaurant for example, combines ingredients in making a
fine meal (classified as manufacturing), sells a cold bottle of wine
(classified as merchandising) and fills customer orders (classified as
service). This type of business activity is called Hybrid Business.
Nonetheless, these companies may be classified according to
their major business interest. In that case, restaurants are more of the
service type for they provide dining services.

E. ACTIVITY

The teacher gave a short activity which is True Or False base on

the topic Types Of Business.

F. GENERALIZATION
No matter how long you've been in business, your company's size
or the industry you're in, you must perform certain business activities
to keep your business running smoothly. Activities related to your
product or service, finance and marketing are must-dos, so basic and
critical to a company that to neglect them means going out of business.

IV. EVALUATION
Instruct the student to get ½ sheet of paper and then answer
Excercise #1.
V. ASSIGNMENT
“Paint me a picture”
The students will paint a picture depicting a typical scenario of a
business type (service, merchandising and manufacturing). To be presented on the next
meeting.

Rusty O. Cortez
MOT Students