(Optional) Compare the four different classifications of businesses.

Comparison should include the following definitions:

• Service—provides intangible products with no physical form (e.g., repair shops, banks, accounting firms, law firms)
• Merchandising—buys products at wholesale price and sells the same at retail price; sells a product without changing its form (e.g., grocery stores, convenience stores, distributors, and other retailers)
• Manufacturing—buys products with the intention of using them as materials in making a new product; combines raw materials, labor, and factory overhead in its production process; sells manufactured goods to customers
• Hybrid—classified in more than one type of business; may be classified according to their major business interest. For example, a restaurant combines ingredients in making a fine meal (manufacturing), sells a cold bottle of refreshment (merchandising), and fills customer orders (service).

Process/Skill Questions:

• What are the advantages and disadvantages of a hybrid business?
• Which classification of business is the most common?
• What are examples from the local community of each classification of business?
• What relationship exists between different classifications of businesses?