This document defines a merchandising business as one that buys and sells goods without altering their form. Key transactions include purchasing inventory, selling inventory for cash or on credit, and receiving payment from credit sales. The primary source of revenue is sales. Examples given are retailers that sell directly to consumers and wholesalers that sell to retailers. A merchandising business' operating cycle involves purchasing inventory, selling inventory which generates sales revenue and accounts receivable, and ultimately collecting cash from sales. The document contrasts this to a service business and asks students to imagine starting their own merchandising business.

1. Nature of Transactions of
a Merchandising Business

2. OBJECTIVES
Define merchandising business.
Describe the nature of transactions of
merchandising business.
Differentiate merchandising business from
service business.
Give examples of merchandising business within
the community.

3. MERCHANDISE
- Goods to be BOUGHT and
SOLD

4. Merchandising Business???

5. Merchandising Business
- a business enterprise
which buys and sells
merchandise without altering
the form.

6. RETAILERS
- Purchase and sell
directly to consumers.
WHOLESALERS
- Sell to retailers
The primary source of revenue for
merchandising businesses is the sale of
merchandise. = SALES REVENUE / SALES

7. THE OPERETAING CYCLE OF A MERCHANDISING BUSINESS

8. CASH
INVENTORY
CASH
CASH SALES

9. CASH
INVENTORY
ACCOUNTS RECEIVABLE
CASH
SALES ON ACCOUNT

11. SELLING
PROCEDURE

12. COST OF GOODS SOLD
OPERATING EXPENSES

15. How do activities of Food Panda which is a service business, differ
from those of grocery stores, which are merchandising business?

17. Imagine yourselves putting up a merchandising business.
What will be your business name?
What goods or merchandises are you going to sell to
your target customers?

18. =
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