Classify Businesses – 1.03

Instructor: Ms. Ella WiseOctober 3, 2014

I can be reached by phone, IM or email: Mon, Wed, and Fri: 4 – 7 p.m.ella.wise@ncpublicschools.org(910) 728-1234BBIM: ella.wise

Objective

1.03 – Classify businesses as profit-making or non-profit-making; and service, product, or combination.

Essential Question Why do people start businesses?

What are examples of activities that businesses perform?

Which businesses are profit-making and which are non-profit businesses?

Which businesses are service businesses and which are product businesses?

Profit-making Businesses

Motive is making a profit (earning more revenue than expenses)

Produce and distribute goods and services based on consumer demand for wants

Non Profit-making Businesses

Can earn a profit, but cannot be run for the sole purpose of earning a profit; profits must be used to benefit the purpose of the organization

Cannot be run for the financial gain of the members or directors

Donors’ Contributions are tax deductible

Examples

Profit making businesses

Apple Computer Domino’s Pizza The Gap Abercrombie and

Fitch

Non-Profit making businesses

American Red Cross

Salvation Army Meals on Wheels Homeless Shelters St. Jude’s

Children’s Hospital

Service Businesses

Provide services rather than goodsSome service businesses meet needs (medical clinics, law firms) and Some service businesses provide wants (taxi companies)Examples

Barber shop Dry Cleaners Copy and Print Shops (Kinko’s) Car repair shops Can you think of others?

Product Businesses

Sell goods to consumers and other businesses

Retailers and distributors are product businesses

Examples Old Navy CD Stores Best Buy Dick’s Sporting Goods Can you think of others?

Combination Product and Service

Some businesses are both product and service businesses—they sell a product and provide a service.

Examples Automobile dealerships Hair salons Appliance stores Can you think of others?

REVIEW ASSIGNMENT

Directions:Click on the image below to access the review activity. Based on the lesson complete the worksheet.

Due: by 12:00 midnight on October 8, 2012

Sources

Images: Slide 4: http://new-business-lists.com/ Slide 5: http://earbudsstore.com/author/fun/ Slide

6:http://blogs.telegraph.co.uk/news/author/timcollard/ & http://kmc.redcross.org/services-ds.html

Slide 7: https://jsd.astihosted.com/portal/Default.aspx?pg=603

Slide 8: www.google.com/images Slide 9:

http://www.montedaquintaresort.com/en/resort/spa/ Slide 10: https://www.magicdust.com.au/how-to-

choose-a-business-name/