Page 109 - Computer - 9(A&B)

Business Activities

Manufacturing Business Service Business Hybrid Business

Manufacturing Business
It is also called product business. It is the business of tangible goods
where the seller and buyer exchange an item that can be seen and
touched.
Manufacturing is the making of goods by hand or by machine that
are sold to the customers. Manufacturing businesses use machines,
robots, computers and humans to produce the fi nished goods. For
example, computer and electronic manufacturer, car, trucks and
vans manufacturer, shoe and clothes manufacturer, canned goods
manufacturer, soda or beverage manufacturer, etc.

Service Business
A service business revolves around the idea of a company
providing its customers with some kind of service. A service is an
intangible good that does not have a physical form or nature like
transportation, consultation, repair, and professional services from
lawyers, salons, doctors, repair shops, banks, schools, education,
entertainment, media, hospitality, medicine, fi nancial analysts,
accountants, etc.

Hybrid Business HYBRID

A hybrid business involves both selling the products as well as providing services
related to the products sold. A hybrid business provides one-stop solution to all
the needs of a customer. For example, an automobile dealership not only sell cars
but also provides car servicing facilities, insurance plans, and annual maintenance
contracts to its customers. The customers benefi ts from availing all services at
the same place. The business profi ts from getting more revenue through sales of
package deals.

Knowledge Plus
Knowledge Plus
A business activity is related to economic activity. There are three sectors of the economy.
1. The primary sector involves extracting the raw material. For example, farming where grains are
grown.
2. The secondary sector is where the raw materials are manufactured into finished products. For
example, flour mills where grains are processed.
3. The tertiary sector is where service is provided to the customers. For example, transport for
carrying grains to mills and flour to the retailers.

Types of Businesses Found in Our Community
People in a community have varied interests and different requirements. An entrepreneur identifi es these
interests and needs and establishes specifi c enterprises. The choice of the type and form of the business needs
a lot of consideration. It involves assessing the fi nancial resources, taking obvious risks and considering the
readiness for the task. It also depends on the purpose of the business and who are going to be the partners in
business and benefi ciaries. The community business enterprises may operate business under any one of the
several business structures. These include:
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