What are the four main types of businesses? - ProProfs Discuss
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What are the four main types of businesses?

Asked by Shi yin Khoo, Last updated: Mar 05, 2019

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S. Nicole

Content Writer, Teacher

S. NicoleWordsmith, PG In Journalism, New York
Wordsmith, PG In Journalism, New York

Answered on Mar 05, 2019

The four major types of businesses are:

  • Service business: This type of business provides intangible products (products with no physical form) to consumers. Service businesses offer professional skills and expertise. Examples are salons, banks, law firms, accounting firms, and banks.
  • Merchandising business: This type of business buys products at a fixed price and resells at a retail price. Examples include grocery stores and distributors.
  • Manufacturing business: This type of business buys the product and redefine it into a new product. The transformed product is what is sold out to the consumers.
  • Hybrid business: It is a type of business that may be classified in more than one type of business. An example of this is a restaurant, a restaurant makes use of ingredients to make a meal (manufacturing), sells drinks (merchandise) and fills customer orders (service).

Sometimes, forms of businesses (sole proprietorship, partnership, corporation, corporative and Limited Liability Company) are often mistaken as types of businesses.

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