1. CLASSIFICATION OF BUSINESS

2. 3. CLASSIFICATION OF BUSINESS
Let’s start with the first set of slides

3. CLASSIFICATION BY PURPOSE
For-profit
A business whose goal is to make a profit by supplying goods and services

4. Profit = Revenue - Expense
WHAT IS PROFIT?
Profit: the difference between expenses (costs) and revenue (sales)
Profit = Revenue - Expense

5. Profit = Revenue - Expense
WHAT IS THE PROFIT?
Profit = Revenue - Expense
Yipin has made $100 by selling lemonade. It cost him $25 to make the lemonade. What is his profit?
$ = $ $25

6. CLASSIFICATION BY PURPOSE
Non-profit
A group that does not seek profit but raises funds for a specific goal

7. CLASSIFICATION BY SIZE
Small: < 99 employees
Medium: 100 – 499 employees
Large: > 500 employees

8. CLASSIFICATION BY OWNERSHIP
Sole proprietorship
Partnership
Corporation
Franchise
cooperative

9. CLASSIFICATION BY INDUSTRY
Primary: industry that obtains and provides natural and raw materials
Secondary: industry that converts the raw materials into commodities and products
Tertiary: industry that provides commodities and products to consumers

10. 4.
EXERCISE QUESTIONS

11. Read the information sheet for each company, and classify the company by purpose, size, ownership, and industry.