This document provides information for a class on classifying businesses. It discusses the objectives of distinguishing between profit-making and non-profit businesses, and service, product, and combination businesses. Examples are given for each type, including profit-making companies like Apple and Domino's Pizza, and non-profits like the American Red Cross and St. Jude's Children's Hospital. Service businesses are defined as those providing services rather than goods, and product businesses sell goods to consumers. Combination businesses both sell products and provide services. A review assignment is given due by a specified date.

1. Classify Businesses – 1.03
Instructor: Ms. Ella Wise
October 3, 2014
I can be reached by phone, IM or email:
Mon, Wed, and Fri: 4 – 7 p.m.
ella.wise@ncpublicschools.org
(910) 728-1234
BBIM: ella.wise

2. Objective
1.03 – Classify businesses as profit-making
or non-profit-making; and service,
product, or combination.

3. Essential Question
 Why do people start businesses?
 What are examples of activities that
businesses perform?
 Which businesses are profit-making and
which are non-profit businesses?
 Which businesses are service businesses
and which are product businesses?

4. Profit-making Businesses
 Motive is making a profit (earning more
revenue than expenses)
 Produce and distribute goods and services
based on consumer demand for wants

5. Non Profit-making Businesses
 Can earn a profit, but cannot be run for the sole
purpose of earning a profit; profits must be used
to benefit the purpose of the organization
 Cannot be run for the financial gain of the
members or directors
 Donors’ Contributions are
tax deductible

6. Examples
Profit making
businesses
 Apple Computer
 Domino’s Pizza
 The Gap
 Abercrombie and
Fitch
Non-Profit
making
businesses
 American Red Cross
 Salvation Army
 Meals on Wheels
 Homeless Shelters
 St. Jude’s Children’s
Hospital

7. Service Businesses
Provide services rather than goods
Some service businesses meet needs (medical clinics,
law firms) and
Some service businesses provide wants (taxi
companies)
Examples
 Barber shop
 Dry Cleaners
 Copy and Print Shops (Kinko’s)
 Car repair shops
 Can you think of others?

8. Product Businesses
Sell goods to consumers and other businesses
Retailers and distributors are product businesses
Examples
 Old Navy
 CD Stores
 Best Buy
 Dick’s Sporting Goods
 Can you think of others?

9. Combination Product and Service
Some businesses are both product and
service businesses—they sell a product and
provide a service.
Examples
 Automobile dealerships
 Hair salons
 Appliance stores
 Can you think of others?

10. REVIEW ASSIGNMENT
Directions:
Click on the image below to access the review
activity. Based on the lesson complete the
worksheet.
Due: by 12:00 midnight on October 8, 2012

11. Sources
Images:
 Slide 4: http://new-business-lists.com/
 Slide 5: http://earbudsstore.com/author/fun/
 Slide
6:http://blogs.telegraph.co.uk/news/author/timcollard/ &
http://kmc.redcross.org/services-ds.html
 Slide 7:
https://jsd.astihosted.com/portal/Default.aspx?pg=603
 Slide 8: www.google.com/images
 Slide 9:
http://www.montedaquintaresort.com/en/resort/spa/
 Slide 10: https://www.magicdust.com.au/how-to-choose-a-
business-name/