Questions and Answers
What type of businesses produce and distribute goods and services based on consumer demand for wants?
What is the motive of profit-making businesses?
making a profit
Which of the following are examples of profit-making businesses? (Select all that apply)
Non-profit-making businesses can be run solely for the purpose of earning a profit.
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What type of contributions are associated with non-profit-making businesses?
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Which of the following are examples of non-profit-making businesses? (Select all that apply)
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What do service businesses provide?
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Which of the following are examples of service businesses? (Select all that apply)
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What do product businesses sell?
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Which of the following are examples of product businesses? (Select all that apply)
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What is a combination product and service business?
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Which of the following are examples of combination product and service businesses? (Select all that apply)
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Study Notes
Profit-making Businesses
- Defined as for-profit enterprises that focus on producing and distributing goods and services driven by consumer demand.
- Primary motive centers around generating profit by ensuring revenue exceeds expenses.
- Notable examples include Apple Computer, Sony, Domino's Pizza, and The Gap.
Non Profit-making Businesses
- Organizations that may generate profit, but do not operate solely for profit; earnings are reinvested to support the organization's mission.
- Profits cannot benefit individual members or directors financially.
- Contributions from donors are tax-deductible, incentivizing charitable giving.
- Examples range from American Red Cross, Salvation Army, Meals on Wheels, and St. Jude's Children's Hospital.
Service Businesses
- Focus on providing services rather than physical goods to fulfill consumer needs or wants.
- Varieties include businesses that fulfill essential needs like medical clinics and law firms, as well as those that cater to wants, such as taxi services.
- Common service business examples include barber shops, dry cleaners, and car repair shops.
Product Businesses
- Engage in selling physical goods directly to consumers or other businesses.
- This category includes both retailers and distributors.
- Examples consist of well-known brands such as Old Navy, Best Buy, and Dick's Sporting Goods.
Combination Product and Service Businesses
- These businesses operate by both selling products and offering services, creating a dual-value proposition.
- Examples include automobile dealerships (selling cars while providing maintenance services), hair salons (providing hairstyling while selling hair products), and appliance stores (offering appliance sales along with delivery and repair services).
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Description
Test your knowledge on different types of businesses with these flashcards. Learn about the motivations, examples, and characteristics of profit-making and non-profit-making businesses. Ideal for business studies and entrepreneurship enthusiasts.
