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