ORGANIZATIO

N
and
MANAGEMEN
T
 identify the different forms of business;
 identify the best practice in choosing a business; and
 recognize the weak and strong point of the different form of
business.
 Lesson 4:
FORMS AND ECONOMIC ROLES
OF BUSINESS ORGANIZATIONS
Business is an entity or
enterprise that provides
goods and services in
exchange for some form
of money or another.
Three basic
problems

needs and wants of every human in the society

Needs are necessities or essentials.

Wants are desires.
-> Selecting which raw
materials
-> Technique of
production
• Capital-intensive
technique where more
machinery is used.
• labour intensive
technique where more
manpower is used
THERE ARE FOUR MAJOR
TYPES OF BUSINESSES
Service Business a type of
business which provides
intangible 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.
Manufacturing 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.
Hybrid Business is
a company that
may be classified
in more than one
type business.
Try this!
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.

1. _________________ 2. ________________ 3. ________________

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

4. _________________ 6. _________________

5. _________________ 7. _________________
Activity