TYPES OF BUSINESS ORGANIZATION

2. 
1.Trading or Merchandising
Business- is the buying of
goods and selling the same
without change in form. When
goods are sold in small
quantities it is called retailing.
When the goods are sold in big
quantities it is called
wholesaling.

3. 
KINDS OF RETAILER
1. Departments stores- carry a wide variety of
product lines, like clothing, shoes, bags, beauty
products, home furnishings, and household
goods.
2. Supermarkets- Sell a variety of food and
household products.
3. Specialty Stores- carry a variety of models for
one kind or limited product lines. For example,
a cell phone store brands like Sony, Samsung,
or Apple iPhones with different models for
each brand.

4. 
4. Convenience Stores- are stores that carry
high turnover goods twenty-four hours a
dat, and seven days a week. Examples of
convenience stores are 7Eleven and
MiniStop. The retail prices of convenience
stores are usually higher than those of
supermarkets.
5. Superstores- are larger than supermarkets
and department stores have emerged.
Examples of superstores are Savemore,
Landmark, Puregold, and S&R.

5. 
6. Factory Outlets- Different
manufacturers are grouped together in
one factory outlet mall. The outlets are
located in places far from the cities.
When the customer goes to the factory-
outlet mall, he will have a variety of
choices.
7. Direct Selling- is one-on-one selling.
One seller approaches a buyer. Many
times the buyers are friends or relatives
of the seller.

6. 
2. Manufacturing- Is the process
of converting raw materials into
finished products. The
manufacturer buys the raw
materials. He makes the raw
materials to finished products by
applying direct labor and factory
overhead.

7. 
Manufacturers of shoes or footwear in
Marikina
Canned goods manufacturers
Manufacturers of soap and toiletries
Manufacturers of food products
Manufacturers of garments or RTWs
Manufacturers of school and office suppplies
Manufacturers of glasswares, silverwares,
chinawares, and kitchenwares.
There are many kinds of manufacturers in
the country, Some of these are:

8. INPUT
• Purchase of
raw
materials.
PROCESS
• Processes
raw materials
applying
direct labor
and factory
overhead.
OUTPUT
• Sells finished
goods
Flow of operations of a manufacturing.

9. 
Labor Intensive- Processing is
done manually by the workers.
Capital Intensive- Processing is
done through the use of
machinery.
Manufacturing Cost- is the sum of
the costs od direct materials,
direct labor, and factory overhead.

10. 
The elements of manufacturing costs are:
1. Direct Materials- pertain to all materials that
from parts of the finished product. These can
be measured and charged directly and can be
identified as forming part of the product, such
as leather to make bags and shoes, or lumber
to make tables and chairs.
2. Direct Labor- Is labor used in manufacturing a
product which can be charged directly to that
particular product. The wages paid to a
carpenter making chairs in a furniture factory
is an example of direct labor.

11. 
3. Factory overhead- refers to
indirect elements of costs
incurres to produce a
finished product, which may
be in the form of indirect
materials, indirect labor or
other indirect expenses.

12. 
Is doing work for others. Examples of service
business are beauty parlors, spas, barber shops,
and repair shops. Medical, Dental, Accounting,
Legal and other services of professionals are
examples of service business.
Service Business
A.
Courier
LBC
DHL
FEDEX
B.
Money
changers
Pawnshops
Laundry Shops
Beauty Parlors
Spas
C.
Tutorial
schools
Review centers
Day care
centers
D.
Taxi Service
UV Service

13. 
 ON A BIGGER SCALE, THERE ARE:
A.
Banks
BDO
Metrobank
BPI
Union bank
B.
Schools
University of the East
Far Eastern
University
San Beda College
Southville School
C.
Hospitals
Asian Hospital
St.Luke’s Hospital
Medical City
Delos Santos Hospital
D.
Call Centers
E.
Airlines
F.
Employment agencies

14. 
The service business record Sales
Revenues, Cost of Service,
Operating Expenses.
The three types of businesses for
profit are (1) trading, (2) service,
and (3) manufacturing. Each has its
own distinct characteristics. They
may be orghanized as (1) Sole
proprietorship, ( 2 ) partnership, or
(3) corporation.

15. 
The trading business may be small
sari-sari stores or large ones like the
SM hypermarts, Robinsons
Departments Stores, or S&R. Service
business may be a partnership of
lawyers, CPAs, or or the size of Cebu
Pacific Air, manufacturing Business
have huge factories, but there may be
small ones producing food products
in your neighborhood.

16. 
Trading Business
National Bookstore
SM Department Store
Amazon.com
Mercury Drugstore
Marks & Spencer
 Product
 Office and School Supplies
 General Merchandise
 Books, Video retailer
 Medicine, Health Produccts
 Food and General
Merchandise
Service Business
Makati Medical Center Medical Services
PLDT Transportation
Sky Cable Telephone service
BPI family Savings Bank Entertainment
Banking

17. 
Manufacturing Business
San Miguel Corporation Food
products
Coca Cola Bottling Corporation Beverages
Isuzu Motors Corporation Cars and
trucks
Jacinto Steel Corporation Roofing
Materials
Nestle Corporation Coffee
and milk
products

18. 
TRADING OR
MERCHANDISING
MANUFACTURING SERVICE
Activity Buys goods
and sells in
the same
form
Converts
raw material
to finished
goods
Does work
for others
Nature of
Revenue
sales sales Service
income
Cost of
Expenses
Cost of goods
sold and
selling and
administrative
expenses
Cost of goods
manufactured
and sold and
selling and
administrative
expenses
Cost of service
and
administrative
expenses
Form of Business Sole Proprietorship or partnership or corporation
Size Small or medium size enterprise or large enterprise

19. 