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. Show
Examples of service businesses are salons, repair shops, schools, banks, accounting firms, and law firms. 2. Merchandising BusinessThis 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 a 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 BusinessUnlike 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 for future business ideasHybrid 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 – they provide dining services. Forms of Business OrganizationThese are the basic forms of business ownership: 1. Sole ProprietorshipA sole proprietorship is a business owned by only one person. It is easy to set-up and is the least costly among all forms of ownership. The owner faces unlimited liability; meaning, the creditors of the business may go after the personal assets of the owner if the business cannot pay them. The sole proprietorship form is usually adopted by small business entities. 2. PartnershipA partnership is a business owned by two or more persons who contribute resources into the entity. The partners divide the profits of the business among themselves. In general partnerships, all partners have unlimited liability. In limited partnerships, creditors cannot go after the personal assets of the limited partners. 3. CorporationA corporation is a business organization that has a separate legal personality from its owners. Ownership of a stock corporation is represented by shares of stock. The owners (stockholders) enjoy limited liability but have limited involvement in the company's operations. The board of directors, an elected group of the stockholders, controls the activities of the corporation. In addition to those basic forms of business ownership, these are some other types of organizations that are common today: Limited Liability CompanyLimited liability companies (LLCs) in the USA, are hybrid forms of business that have characteristics of both a corporation and a partnership. An LLC is not incorporated; hence, it is not considered a corporation. Nonetheless, the owners enjoy limited liability like in a corporation. An LLC may elect to be taxed as a sole proprietorship, a partnership, or a corporation. CooperativeA cooperative is a business organization owned by a group of individuals and is operated for their mutual benefit. The persons making up the group are called members. Cooperatives may be incorporated or unincorporated. Some examples of cooperatives are water and electricity (utility) cooperatives, cooperative banking, credit unions, and housing cooperatives. Although service provides cannot inventory their outputs, they must inventory the inputs for their products. As for customer contracts, many service operations have little outside customer contracts. Such as the backroom operations of a bank or the baggage handling area at an airport.
Operations management is relevant to both manufacturing and service operations. You need to know about operations management, regardless of the type of organization. Definition of Manufacturing and ServiceManufacturing process: Manufacturing can be defined as the process of covering raw materials, components, or parts into finished goods that meet customer satisfaction. Service process: A valuable action, deed, or effort performed to satisfy a need or to fulfill a demand. Differences between manufacturing and servicing are as follows: Similarities between Manufacturing and ServiceThe similarities between manufacturing and service operations are given the following:
Difference between Manufacturing and ServiceThe difference between manufacturing and service operations fall into the eight categories as follows: What is the difference between a manufacturing business and a service business provide an example of each and compare them?A manufacturing business creates and sells a physical product where a service business sells a service. For instance, a soap company is a manufacturing business. In contrast, a service business could be an accounting or a legal firm. In both cases, an action is for hire.
Which is not difference between manufacturing and services?Answer and Explanation: The answer is (e) Cost per unit. Manufacturing and service operations both account for the cost for each unit. Outside of that, providing a service and providing a tangible product is largely the same.
What is the difference between a manufacturing and a service economy?A manufactur- ing economy is driven by the mass production of products [4], whereas a service economy is based on knowledge- intensive industries and services in economic production, well-educated workers in the occupational market, and innovating firms in business [5].
What is the difference between service and industry?Understanding Service Sector
Examples of service sector jobs include housekeeping, tours, nursing, and teaching. By contrast, individuals employed in the industrial or manufacturing sectors produce tangible goods, such as cars, clothes, or equipment.
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