Business for ABM student

1. •WHAT IS BUSINESS?
•TYPES OF BUSINESS:
-ACCORDING TO ACTIVITIES
-ACCORDING TO OWNERSHIP

2. What is a business?
* Business is an organization or economic system
where goods and services are exchanged for one
another or for money. Every business requires
some form of investment and enough customers
to whom its output can be sold on a consistent
basis in order to make a profit.

3. WHAT ARE THE TYPES OF
BUSINESS ACCORDING TO
ACTIVITIES?

4. 1. SERVICES BUSINESS
A commercial enterprise that provides work performed
in an expert manner by an individual or team for the
benefit of its customers.
Examples :
Parlors Spa Banks

5. 2. MERCHANDISING BUSINESS
It is a business that purchases finished products and
resells them to consumers. Commonly known as the
“buy” and “sell” business.
Examples:
Grocery stores Department stores

6. 3. MANUFACTURING BUSINESS
A manufacturing business is any business that uses
components, parts or raw materials to make a finished
good. These finished goods can be sold directly to
consumers or to other manufacturing businesses that
use them for making a different product.
Example: Garment Factories Car manufacturing companies

7. WHAT RE THE TYPRS OF
BUSINESS ACCORDING TO
OWNERHIP?

8. 1. SOLE PROPRIETORSHIP
A sole proprietorship, also known as a sole trader or a
proprietorship, is an unincorporated business with a
single owner who pays personal income tax on profits
earned from the business.
Example: small liquor store

9. 2. PARTNERSHIP
A partnership is an arrangement in which two or more
individuals share the profits and liabilities of a business
venture. Various arrangements are possible:
all partners might share liabilities and profits equally, or
partners may have limited liability.
Example:
Law offices

10. 3. CORPORATION
A corporation is a legal entity that is separate and
distinct from its owners. Corporations enjoy most of the
rights and responsibilities that an individual possesses;
that is, a corporation has the right to enter into
contracts, loan and borrow money, sue and be sued, hire
employees, own assets and pay taxes.
Example:
San Miguel
Corporation