Types of Business in management.
Hey, guys welcome back again. After a long time, I am writing on my new topics “Management”. In these topics, I am going to explain “What is Business? and Types of Business. So let’s start
What is Business?
The word “Business” is an organization, which uses economics resources or inputs for providing goods or Services to the customer in exchange for the money or other goods and Services.
The business organization comes in different types of ownership.
1. Service Business:-
A service type of business provides an intangible(untouchable) product. Service type firms offer professional skill, expertise, advice and other similar product.
Example:- Saloons, Repair shop, Schools, Banks, Accounting firms, and Law firms.
2. Manufacturing Business:-
A manufacturing business buys the product with the intention of using them as material in making a new product, Thus, there is a transformation of the product purchased.
A manufacturing business combines raw materials, labor and factory overhead in its production process. The manufactured goods will then be sold to a customer
3. Trade/Merchandising Business:-
In this type of business Buy product at wholesale price and sells them at retail price. They are also known as “Buy and Sell” business. They make a profit by selling the product at a price higher than their purchase costs. A trading business sells a product without changing its form.
Example:- Grocery store, Distributor and many more.
4. Hybrid Business.:-
Hybrid Business are companies may be classified in more than one type of business.
A restaurant, for example:- Combine Ingredients in making a time meal(Manufacturing Business), sells a cold bottle of wine(Trade business) and fills customer orders(Service Business).