Classify Businesses Flashcards

What type of businesses produce and distribute goods and services based on consumer demand for wants?

What is the motive of profit-making businesses?

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.

What type of contributions are associated with non-profit-making businesses?

Which of the following are examples of non-profit-making businesses? (Select all that apply)

What do service businesses provide?

Which of the following are examples of service businesses? (Select all that apply)

What do product businesses sell?

Which of the following are examples of product businesses? (Select all that apply)

What is a combination product and service business?

Which of the following are examples of combination product and service businesses? (Select all that apply)

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).

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.