Types of businessman


Types of businessman
company, business, legal procedures
It is intended to reflect on the different legal aspects related to the creation of your own company, and discover their strengths and weaknesses, so that they can be improved to increase your chances of success.

With the start-up of your company in addition to generating your own employment and of personal satisfaction, you will also contribute to the economic development of your community, and the creation of employment by direct jobs and Indirect that your business path generates.

We analyze clearly and briefly the steps to follow for the launch of a company and the advantages and disadvantages of being an entrepreneur.


• A business entity is an organization that uses economic resources or inputs to provide goods or services to customers in exchange for money or other goods and services. Business organizations come in different types and different forms of ownership.

• There are three major types of businesses:

1. Service Business. A service type of business provides intangible products (products with no physical form). Service type firms offer professional skills, expertise, advice, and other similar products.

Examples of service businesses are: salons, repair shops, schools, banks, accounting firms, and law firms.

2. Merchandising Business. This type of business buys products at wholesale price and sells the same at retail price. They are known as "buy and sell" businesses. They make profit by selling the products at prices higher than their purchase costs. A merchandising business sells a product without changing its form. Examples are: grocery stores, convenience stores, distributors, and other resellers

3. Manufacturing Business. Unlike a merchandising business, a manufacturing business buys products with the intention of using them as materials in making a new product. Thus, there is a transformation of the products purchased. A manufacturing business combines raw materials, labor, and factory overhead in its production process. The manufactured goods will then be sold to customers.

• Hybrid Business. Hybrid businesses are companies that may be classified in more than one type of business. A restaurant, for example, combines ingredients in making a fine meal (manufacturing), sells a cold bottle of wine (merchandising), and fills customer orders (service).

• Nonetheless, these companies may be classified according to their major business interest. In that case, restaurants are more of the service type.


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