What is Business and its types? โ€“ Concept, Types | New Topic [2024]

In this note, we are going to learn about a topic called โ€œWhat is Business and its types?โ€œ. Welcome to Poly Notes Hub, a leading destination for engineering notes for diploma and degree engineering students.

Author Name: Arun Paul.

What is Business?

A business is an organization that employs economic resources or inputs to offer goods or services to consumers in exchange for money or other goods and services. There are various types and structures of business organizations.

Types of Businesses

There are four major types of businesses โ€“

1. Service Business

A service business provides intangible items. Service firms provide professional skills, experience, counsel, and other comparable things.

Examples: Education, Tourism, Beauty Salons, Banks, Consultancy firms, Accounting firms, and Law firms.

2. Merchandise Business

This kind of business purchases things at wholesale prices and sells them at retail prices. They are known as a โ€œbuy and sellโ€ business. They benefit by selling the things at a higher price than their original purchasing price. A merchandising business sells a product without changing its form.

Examples: Grocery Stores, Convenience Stores, Distributors, and other Resellers.

3. Manufacturing Business

A manufacturing firm, as opposed to a merchandising business, purchases things with the goal of using them as raw materials to create a new product. Thus, the purchased products undergo a metamorphosis. A manufacturing company combines raw supplies, labor, and factory overhead in its manufacturing process. The manufactured goods will then be sold to customers.

Examples: Cosmetics, Candle Making, Chemical Industries etc.

4. Hybrid Business

Hybrid business are companies that may be classified in more than one type of business. A resturant, for example, combines ingredients in making a fine meal (manufacturing), sells a cold bottle of wine (merchandising), and fills customer orders (service).

Examples: Amazon, Flipkart, Restaurants etc.

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One thought on โ€œWhat is Business and its types? โ€“ Concept, Types | New Topic [2024]โ€

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