As we know that three types of business that we can establish, they are service business, merchandising business and the last one of manufacturing business. From those types of businesses mentioned above, they can be classified into two main categories, first is business related with service and business related to product or usually called by business product.

A business product is a business that the main activity is closely related with products. In a merchandising business, the main activity of the business is to sell the products to the consumers, so it is more like retail shop or wholesale which sell the products in a large quantity to distributor. The products sold are called by merchandise inventory.

While in manufacturing business, the main activity of the business is to produce or manufacture products. Then, they either have other company to sell the products or they do it by their selves, but still they are not focusing on the selling of the products but in manufacturing them.

If in merchandising business, they buy the products in form of finished products, in this manufacturing business they buy raw material rather than finished goods in order to be processed and produce finished products.

This entry was posted on Saturday, February 13th, 2010 at 12:46 pm and is filed under Business Industry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.