1. 1.03 Classify Businesses
Objective 1.03 Classify businesses as profit-making or non profit-making; and service, product or combination.

2. Profit-making Businesses
For-profit businesses
Motive is making a profit (earning more revenue than expenses)
Produce and distribute goods and services based on consumer demand for wants
Examples
Apple Computer
Sony
Domino’s Pizza
The Gap
Abercrombie and Fitch

3. Non Profit-making Businesses
Non-profit businesses
Can earn a profit, but cannot be run for the sole purpose of earning a profit; profits must be used to benefit the purpose of the organization
Cannot be run for the financial gain of the members or directors
Donors’ Contributions are tax deductible
Examples
American Red Cross
Salvation Army
Meals on Wheels
Homeless Shelters
St. Jude’s Children’s Hospital

4. Service Businesses Provide services rather than goods
Some service businesses meet needs (medical clinics, law firms)
Some service businesses provide wants (taxi companies, ISPs)
Examples
Barber shop
Dry Cleaners
Copy and Print Shops (Kinko’s)
Car repair shops

5. Product Businesses Sell goods to consumers and other businesses
Retailers and distributors are product businesses
Examples
Old Navy
CD Stores
Best Buy
Dick’s Sporting Goods

6. Combination Product and Service
Some businesses are both product and service businesses—they sell a product and provide a service.
Examples
Automobile dealerships
Hair salons
Appliance stores
Can you think of others?