Answer:
3 Types of Business
There are three major types of businesses as to purpose are:
1. Service Business
A service type of business provides intangible products (products with no physical form). Service type firms offer professional skills, expertise, advice, and other similar products.
Examples of service businesses are:
Business services, such as accounting, advisory, taxation, advertising, engineering, legal, research agencies, computer programming, etc.
Personal services, such as laundry, beauty salon, photography
Automotive repairs, car rental, car wash, parking spaces
Fitness facilities, amusement parks, bowling centers, golf courses, theatres
Hospitals and clinics, schools, museums, banks
Hotel and lodging, and more.
2. Merchandising Business
This type of business buys products at wholesale price and sells the same at retail price. They are known as "buy and sell" businesses. They make profit by selling the products at prices higher than their purchase costs.
A merchandising business buys a product and sells it without changing its form. Examples include all distribution and retail stores such as: department store, grocery, hardware, clothes and accessories shop, consumer electronics, home furniture, appliance stores, drug stores, etc.
3. Manufacturing Business
Unlike a merchandising business, a manufacturing business buys products with the intention of using them as raw materials to make a new product. Thus, there is transformation of the products purchased.
A manufacturing business combines raw materials, labor, and overhead costs in its production process. The goods produced will then be sold to customers. Examples include:
Food processing, such as producing canned meat, frozen goods, dairy products, bottled drinks, also bakeries and oil mills
Fabric mills and textile production from cotton, wool, polyester; and also clothing factories that use textile as raw material
Wood and metal works, such as in building cabinets, tables, chairs
Oil refineries, chemical labs, plastic and rubber production
Ship builders, aircraft manufacturers, car makers
and many other producers and factories
