1.03 Classify Businesses 1.03 Classify Businesses Objective 1.03 Classify businesses Objective 1.03 Classify businesses as profit-making or non profit- as profit-making or non profit- making; and service, product or making; and service, product or combination. combination.
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 Businesses1.03 Classify Businesses
Objective 1.03 Classify businesses as Objective 1.03 Classify businesses as profit-making or non profit-making; and profit-making or non profit-making; and service, product or combination.service, product or combination.
Profit-making BusinessesProfit-making Businesses
For-profit businessesFor-profit businesses Motive is making a profit Motive is making a profit (earning more (earning more
revenue than expenses)revenue than expenses)
ExamplesExamples AppleApple GoogleGoogle Abercrombie and FitchAbercrombie and Fitch Harris TeeterHarris Teeter Great Wolf LodgeGreat Wolf Lodge
Non Profit-making Non Profit-making BusinessesBusinesses
Cannot be run for the sole purpose of Cannot be run for the sole purpose of earning a profitearning a profit IF they make a profit, it must be used to benefit IF they make a profit, it must be used to benefit
the purpose of the organizationthe purpose of the organization Cannot be run for the financial gain of the Cannot be run for the financial gain of the
members or directorsmembers or directors Donors’ Contributions are tax deductibleDonors’ Contributions are tax deductible ExamplesExamples
American Red CrossAmerican Red Cross Salvation ArmySalvation Army Meals on WheelsMeals on Wheels Homeless SheltersHomeless Shelters St. Jude’s Children’s HospitalSt. Jude’s Children’s Hospital
Service BusinessesService Businesses
Provide services rather than goodsProvide services rather than goods Some service businesses meet needs Some service businesses meet needs
Medical clinics, law firmsMedical clinics, law firms Some service businesses provide wants Some service businesses provide wants
Barber shopBarber shop Dry CleanersDry Cleaners Copy and Print Shops (Kinko’s)Copy and Print Shops (Kinko’s) Car repair shopsCar repair shops
Product BusinessesProduct Businesses
Sell goods to consumers and other Sell goods to consumers and other businessesbusinesses Retailers and distributors are product Retailers and distributors are product
businessesbusinesses
ExamplesExamples Old NavyOld Navy FYEFYE DSWDSW
Combination Product and Combination Product and ServiceService
Some businesses are both Some businesses are both They sell a product AND provide a They sell a product AND provide a
serviceservice
ExamplesExamples Automobile dealershipsAutomobile dealerships Hair salonsHair salons Appliance stores (Sears, Home Depot)Appliance stores (Sears, Home Depot) Best BuyBest Buy