2. 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)
▪ 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
3. Review the types of business organizations
▪ Sole / Single proprietorship – owned by one person
▪ Partnership – owned by partners (two or more persons)
▪ Corporation – owned by shareholders
▪ Cooperative - owned by members
4. •Ask the learners how the following earn profits:
• Bruno’s Barber Shop
• Clean Ko Place Mo Cleaning Services
• Tutorial Services
• Manila Hotel
• Cynthia’s Food Vendor
• Susan’s Roses Flower Shop
• Wash Your Problem Laundry Shop
• Bread Pit Bakery
• Cut and Face Parlor
• Fish Be With You Fish Shop
5. 3 types of business organizations:
1. Service Business
▪This type of business offers professional skills, advice and
consultations.
▪Examples: barber shops and beauty parlors, repair shops,
banks, accounting and law firm.
6. 2. 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 are: book stores, sari-sari stores, hardware stores
7. 3. 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 are: shoe manufacturing businesses, car
manufacturing plants
8. Additional information:
There are businesses that may be classified under
more than one type of business. A bakery, for
example, combines raw materials in making loaves of
bread (manufacturing), sells hot pan de sal
(merchandising), and caters customers’ orders in
small coffee table servings of ensaymada and hot
coffee (service).
