Académique Documents
Professionnel Documents
Culture Documents
TYPES OF BUSINESS
ACCORDING TO ACTIVITIES
1. Service companies
2. Merchandising companies
3. Manufacturing companies
SERVICE COMPANIES
Cash on
hand
Receives Pays
payment employe
from es and
customer other
s expenses
Performs
Services
MERCHANDISING COMPANIES
• Retailer is a merchandising
company that sells goods
directly to customers.
• Wholesaler is a
merchandising company
that sells goods to retailers.
Operating Cycle of Merchandising Companies
Cash on
hand
Receives
payment
from Buy
customer goods
s
Stores
Sells
goods as
inventory
inventory
MANUFACTURING COMPANIES
Cash on
hand
Receives Pays for
payment inputs
from (materials,
customer labor,
s overhead)
Converts
inputs
Sell into
inventory finished
Stores goods
finished
goods as
inventory
Type of Business According Advantages Disadvantages
to Activities