Types of business
- Service: An activity performed to earn money through customer satisfaction is known as a service. It involves professional skills and expertise.
E.g. A professional teacher earns money by taking tuition class - Merchandising: Merchandising means procurement of goods from manufacturers or wholesalers, at a low price and selling it at a higher price to make a profit. It is also known as a retail business.
E.g. A florist selling flowers - Manufacturing: Making profit through production or creation of goods from raw material in such a way that it derives some utility to the consumer is known as a manufacturing business.
E.g. Processing of sugarcane in a sugar mill to get fine sugar - Hybrid: A business which involves all the three activities, i.e. manufacturing of goods, merchandising of products and delivering service falls under the hybrid category.
E.g. A furniture seller, who manufactures furniture, buys old furniture and sells it at a higher price after repairing and also provides services for polishing old furniture.
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