ACCOUNTING

TYPE OF BUSINESS

There are 3 Types of business organization according to activities

1.) service business 
2.) merchandising business 
3.) manufacturing business

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1. SERVICE BUSINESS
   This type of business offers professional skills, advice and consultations.

Offer intangible products to customers using their skills and expertise

Examples:
• barber shops
• beauty parlors
• repair shops
• banks
• accounting and law firms

2. MERCHANDISING  ( TRADING ) BUSINESS
  This type of business buys at wholesale and later sells the products at retail.

  They make a profit by selling the merchandise or products at 
prices that are higher than their purchase costs.

  This type of business is also known as "buy and sell". 

Examples:
• book stores
• sari-sari stores
• hardware stores

Pag sinabi naman merchandising Tandaan nyo lang ang mga salitang "BUY AND SELL"

3. MANUFACTURING BUSINESS
   This type of business buys raw materials and uses them in making a new product, therefore combining raw materials, labour and expenses into a product for sale later on. 

Examples:
• shoe manufacturing businesses
• car manufacturing

----------------IN SUMMARY--------------------

°Service business
- intangible products
- hindi mo mahahawakan ang kanilang uri ng business

°Merchandising
- tangible products
- it includes buy and sell transaction

°Manufacturing
- ito naman yung gumagawa ng product

----------Additional information-----------

Sa isang business pwede ito i-classify under one or more type of business.

Example:
Sa isang bakery shop gumagawa ng product at the same time bine-benta rin nila yung product na nagawa nila therefore it maybe classified as a manufacturing and a merchanding type of business.

Test yourself by answering this
-------------------REVIEW QUIZ----------------
Get a sheet of paper

PART I.
Identification

1. A business owned by only ONE INDIVIDUAL

2. A form of business that have 15 members

3. A business owned by two or more persons

4. The person who owned the sole proprietorship is called_______.

5. A business owned by a shareholders/ stockholders.

PART II.
Identify if it is a service, merchandising or manufacturing business

1. Provides services to customers 
2. Sells goods to customers 
3. Raw materials are available 
4. Goods to be sold are purchased from a supplier
5. Goods to be sold are produced by the company itself 
6. Supplies are used, no goods to be sold 
7. Bakery 
8. Barber shop 
9. Cellphone store 
10. Abenson appliances 

----------CORRECT ANSWERS----------------

Part I
1. Sole/ single proprietorship
2. Corporation
3. Partnership
4. Sole proprietor
5. Corporation

Part II
1. Service business
2. Merchandising business
3. Manufacturing business
4. Merchandising business
5. Manufacturing business
6. Service business
7. Merchandising business
8. Service business
9. Merchandising business
10. Merchandising business