The business entity is an organization that uses economic resources to provide goods or services to customers.

1. Types of business

2. Business entity
 An organization.
 Uses economic resources.
 Provide goods or services to customers.
 Exchange money or goods and services.
 Business organizations come in
1) different types
2) different forms of ownership

3.  Major types of business.
1) Service business
2) Merchandising business
3) Manufacturing business
4) Hybrid business business

4. 1) Service business
• Provides intangible products (products with no
physical form).
• Service type firms offer
professional skills,
expertise, advice,
other similar products.
• Examples:
salons, repair shops,
schools, banks,
accounting firms,law firms.

5. 2. Merchandising Business
• Buys products at wholesale price and
sells the same at retail price.
• Known as "buy and sell" businesses.
• Make profit by selling the products at prices higher
than their purchase costs.
• Sells a product without changing its form.
Examples : grocery stores, convenience stores,
distributers & other resellers.

6. 3. Manufacturing Business
• Buy products with the as materials to make a
new product.
• A manufacturing business combines
raw materials,
labor, and overhead costs
in its production process.
• Manufactured goods will then be sold to
customers.

7. 4. Hybrid Business
• Hybrid businesses are companies that may be
classified in more than one type of business.
• For example: A restaurant
combines ingredients in
making a fine meal (manufacturing),
sells a cold bottle of wine (merchandising),
fills customer orders (service).

8. • Limited liability company (LLC) is a
hybrid business structure.
• LLCs are attractive to small business owners.
• Because they provide
the limited liability features of a corporation,
the tax efficiencies &
operational flexibility of a partnership.

9. Thank you