Aug 4 - Classification of Business Activity

Friday, 6 August 2021 8:14 PM

1. SERVICE BUSINESS
- Provides intangible products 3. MANUFACTURING BUSINESS
- Offers professional skills, advice, etc. - Buys products with the intention of using them in making
- Binebenta Ideas a new product (TANGIBLE)

A. SERVICE BUSINESS A. AGRICULTURE AND MINING BUSINESSES

- Produce raw material, such as plants or minerals
- Offer intangible goods, or services and typically for labor or other services
provided to government, consumers, or to other business.
- Salon, School B. MANUFACTURERS
- Produce either from raw materials or from
component parts, then sell their products at a profit
B. FINANCIAL BUSINESS
- Include banks and other companies that generate profits through investment and
management capital C. REAL-ESTATE BUSINESS
- Sell, rent, and develop properties
- BANKS VS NON BANKS: think of their core product para madetermine - Real-estate and Non-Bank
kung bank or nonbank
- Who regulates banks- Bangko Central
D. INFORMATION BUSINESS
- Regulates Securities and Exchange Commission - Generate profits primarily from the sale of intellectual
BANKS NON-BANKS property
take in deposits and savings as their though hindi primary, still take in moneys - They include movie studios, publishers, and internet.
primary business - Ideas na na-produce na
BDO insurance firms, pawnshops, investment
bank, mutual fund company, leasing
4. HYBRID BUSINESS
company - Companies that may be classified in more than one
type of business
Savings bank, universal investment not regulated by bank ang - May be classified according to their major business
nag-rregulate is insurance commission interest. Restaurants are more of the service type.
Bank license No license - Hotel, Amusement Parks, Cafes, Record Companies

C. TRANSPORTATION BUSINESS
- Deliver goods and individuals to their destination for a fee
- Grab, Lalamove, Airlines

D. UTILITIES
- Produce public services such as electricity or sewage treatment, usually under a
government
- Meralco, Maynilad

2. MERCHANDISING BUSINESS
- Known as buy and sell business
- grocery stores, department stores, drug stores, and book stores, sari-sari stores
- TANGIBLE

A. RETAILERS AND DISTRIBUTORS

- Act as middlemen and get goods produced by manufacturers to the intended
consumers, they make their profits by marking up their prices
ü Retailer – sells goods directly to the end users
ü Wholesaler – sells goods to the retailers