Community Of Learners Academy of San Jose/St.

Vincent Institute of Technology

(First Semester) Organization and Management
Name: ______________________________ Gr. 11 Strand: ABM/GAS/ICT/F&B Teacher: Crestena Habal
Module 7: Lesson 4.1 FORMS AND ECONOMIC ROLES OF BUSINESS ORGANIZATIONS

THERE ARE DIFFERENT TYPES OF BUSINESS

Business is an entity or enterprise that provides goods and services in exchange for some form of money or another. It can be a privately owned, non-profit
organization or state-owned business. These entities consider the three basic problems in economy in establishing their business:
a.) What to produce?
b.) How to produce?
c.) For whom to produce?

THERE ARE FOUR MAJOR TYPES OF BUSINESSES:

 Service Business a type of business which provides intangible products. Service type firms offer professional skills, expertise, advice, and other similar
products.
 Merchandising Business is a business which 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.
 Manufacturing Business unlike a merchandising business, buys products with the intention of using them as materials in making a new product. A
manufacturing business combines raw materials, labor, and factory overhead in its production process. The manufactured goods will then be sold to
customers.
 Hybrid Business is a company that may be classified in more than one type of business.

Activity 1 – Picture Identification as to What Type of Business

Direction: Identify the following pictures below whether it is a service, merchandising, manufacturing or a hybrid type of business.