This document discusses the three main types of businesses according to their activities: service businesses, merchandising businesses, and manufacturing businesses. It provides examples of businesses that fall under each type and describes their key characteristics. Specifically, it defines service businesses as those that offer intangible products/services, merchandising businesses as those that buy and resell products, and manufacturing businesses as those that combine raw materials into new products. The document also outlines the advantages and disadvantages of each type of business.

1. Types of
Business According to
Activities

2. Content
Standards
The learners demonstrate an
understanding of the types of
business according to activities,
particularly:
• service business
• merchandising business
• manufacturing business

3. Performance
Standards
The learners shall be able to
differentiate the types of
business according to activities
and make a list of businesses in
their community according to
their activities.

4. Learning
Competencies
The learners should compare and
contrast the types of business
according to activities
(ABM_FABM11-IIIb-13)
 identify the advantages and
business requirements of each
type (ABM_FABM11-IIIb-14)

5. Specific
Learning
Objectives
At the end of this lesson, the learners
will be able to:
review the types of business according
to activities
describe a service entity and give
examples
describe a merchandising entity and give
examples
describe a manufacturing entity and give
examples

6. Review
What are the types of
business Organization?

7. MOTIVATION
How the following businesses earn profits?
1. Bruno’s Barber Shop
2.Clean Ko Place Mo Cleaning Services
3.Tutorial Services
4.Manila Hotel
5.Cynthia’s Food Vendor
6.Susan’s Roses Flower Shop
7.Wash Your Problem Laundry Shop
8.Bread Pit Bakery
9.Cut and Face Parlor
10.Fish Be With You Fish Shop

8. 3 types of
Business
Organizations
1. Service Business
2. Merchandising Business
3. Manufacturing Business
4. hybrid Business

9. SERVICE
BUSINESS
This type of business offers professional
skills, advice, expertise and consultations.
Provides intangible products or services to
customers.
EXAMPLES:
barber shops
 beauty parlors
repair shops
Banks
accounting
and law firms

10. Advantages
1. the absence of inventory
or tangible goods held by the
company.
No production facilities

11. Disadvantage
Inability to standardize
services
Maintaining Human
Capital

12. MERCHANDISING
BUSINESS
This type of business buys at wholesale and
later sells the products at retail.
They make a profit by selling the
merchandise or products at prices that are
higher than their purchase costs.
This type of business is also known as "buy
and sell".
EXAMPLES:
book stores
sari-sari stores
hardware stores

13. Advantages
Visible products
Less conversion, time,
and effort

14. Disadvantages Managing Inventory

15. MANUFACTURING
BUSINESS
This type of business buys raw
materials and uses them in making a
new product, therefore combining
raw materials, labour and expenses
into a product for sale later on.
EXAMPLES:
shoe manufacturing businesses
car manufacturing plants

16. Advantages:
Quality Control
Visible products

17. Disadvantages
Generally need production
facilities
High conversion costs
Cost of quality control
Managing Inventory

18. HYBRID
BUSINESS
Businesses that may be
classified under more than
one type of business.
EXAMPLES:
 A bakery

19. OPERATING
CYCLE OF
SERVICE
BUSINESS

20. OPERATING
CYCLE OF
MERCHANDISI
NG BUSINESS

21. OPERATING
CYCLE OF
MANUFACTURI
NG BUSINESS

22. Group work
 identify if it is a service, merchandising, manufacturing
business or hybrid:
 1. Provides services to customers
 2. Sells goods to customers
 3. Raw materials are available
 4. Goods to be sold are purchased from a supplier
 5. Goods to be sold are produced by the company itself
6. Supplies are used, no goods to be sold
 7. Bakery
 8. Barber shop
 9. Cellphone store
 10.Abenson appliances

23. Homework
activity:
learners will look for a business that is
either a service, merchandising or
manufacturing business. Ask them to
interview the owner why they choose
the kind of business and what are the
problems they have encountered and
how they overcome those problems.
Pick someone from the class to
discuss his findings.

24. ENRICHMENT
1. Ask the learners to think of five
companies/stores who do service,
merchandising and manufacturing
2. Call on a learner and ask why
those businesses were
categorized as service,
merchandising or manufacturing