2.1.Types of industry
Producing
goods and commodities
Manufacturing
Providing
favor according to the customer requests
Service
2.2. Sectors of business
2.3. Classification of business
A business (also known as enterprise or firm) is an organization engaged in the trade of goods, services, or both to consumers.[1]
Classifications
|
Title |
Peculiarities |
|
Agriculture and mining businesses |
are concerned with the production of raw material, such as plants or minerals |
|
Financial businesses |
include banks and other companies that generate profit through investment and management of capital |
|
Information businesses |
generate profits primarily from the resale of intellectual property and include movie studios, publishers and packaged software companies |
|
Manufacture business |
producing products, from raw materials or component parts, which they then sell at a profit. |
|
Real estate businesses |
generate profit from the selling, renting, and development of properties comprising land, residential homes, and other kinds of buildings |
|
Retailers and distributors |
act as middle-men in getting goods produced by manufacturers to the intended consumer, generating a profit as a result of providing sales or distribution services. Most consumer-oriented stores and catalog companies are distributors or retailers. |
|
Service businesses |
offer intangible goods or services and typically generate a profit by charging for labor or other services provided to government, other businesses, or consumers. Organizations ranging from house decorators to consulting firms, restaurants, and even entertainers are types of service businesses. |
|
Transportation businesses |
deliver goods and individuals from location to location, generating a profit on the transportation costs |
|
Utilities |
produce public services such as electricity or sewage treatment, usually under a government charter. |
After deciding to start a business (and the particular business to pursue), one of the important issues is the form of business entity that will serve as the vehicle in pursuing the business.
2.4. Forms of business
T
he
choice of the form of business or business organization depends on
various factors. In certain business, like banks, the law requires
that the business entity must be a corporation. A small business,
like your friendly sari-sari store, is better off as a sole
proprietorship, although it could also be converted to another form
of business if the circumstances require that shift.