objective: classify businesses as profit-making or non profit- making; and service, product or...

Objective: Classify businesses as profit-making or non Objective: Classify businesses as profit-making or non profit-making; and service, product or combination.profit-making; and service, product or combination.

Classifying Businesses

For-profit businesses Motive is making a profit (earning more revenue than

expenses) Produce, distribute or sell goods and/or services

based on consumer demand Examples

Apple Computer Sony Domino’s Pizza The Gap Abercrombie and Fitch

Profit-making Businesses

Not-for-profit 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

American Red Cross Salvation Army Homeless Shelters St. Jude’s Children’s Hospital Government Organizations

Not-for-ProfitBusinesses

Provide services rather than goods Provide to people or other businesses Some service businesses meet needs (medical clinics, law

firms) Some service businesses provide wants (taxi companies,

ISPs) Examples

Barber shop Dry Cleaners Plumber Car repair shops

Service Businesses

Sell goods to consumers and other businesses Retailers and distributors are goods businesses Examples

Old Navy Harris Teeter Best Buy Dick’s Sporting Goods

Goods Businesses

Some businesses are both goods and service

businesses—they sell a good and provide a service.

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

Combination Goods and Service

On your paper, work with a partner and list as many

businesses as you can in 2 minutes

Organize those businesses into categories (Product, Service, Combination

Then beside each one write P if it’s a for Profit business or NP if it’s a Non-Profit business

* See the example on the next page.

Activity Break

Product Service Combination

Kellogs (P) Red Cross (NP) Ford (P)

Example