1.03 classify businesses

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1.03 Classify Businesses. Objective 1.03 Classify businesses as profit-making or non profit-making; and service, product or combination. Profit-making Businesses. For-profit businesses Motive is making a profit (earning more revenue than expenses) Examples Apple Google - PowerPoint PPT Presentation

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

  • Profit-making BusinessesFor-profit businessesMotive is making a profit (earning more revenue than expenses)

    ExamplesAppleGoogleAbercrombie and FitchHarris TeeterGreat Wolf Lodge

  • Non Profit-making BusinessesCannot be run for the sole purpose of earning a profitIF they make a profit, it must be used to benefit the purpose of the organizationCannot be run for the financial gain of the members or directorsDonors Contributions are tax deductibleExamplesAmerican Red CrossSalvation ArmyMeals on WheelsHomeless SheltersSt. Judes Childrens Hospital

  • Service BusinessesProvide services rather than goodsSome service businesses meet needs Medical clinics, law firmsSome service businesses provide wants Taxi companies, ISPsExamplesBarber shopDry CleanersCopy and Print Shops (Kinkos)Car repair shops

  • Product BusinessesSell goods to consumers and other businessesRetailers and distributors are product businesses

    ExamplesOld NavyFYEDSW

  • Combination Product and ServiceSome businesses are both They sell a product AND provide a service

    ExamplesAutomobile dealershipsHair salonsAppliance stores (Sears, Home Depot)Best Buy

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