Business and Economy

Types of business

The word business comes from the Latin negotium, which means ” what is not leisure .” Although this word has multiple uses, one of them is to refer to all those occupations, chores or jobs that are done for profit.

Major types of business are:types of business
  • Service Business
  • Merchandising Businesses
  • Manufacturing Businesses
  • Hybrid Businesses
  • Sole Proprietorship businesses
  • Partnership business
  • Corporation business
  • Limited Liability Company

Manufacturing or production: through these businesses, inputs or raw materials are transformed into final products. Within this category are, among others, household appliances, textiles, automotive and furniture factories.

Service: these businesses include all those tasks intended to provide a service to another business or to a particular individual. The most common service businesses are: gyms, travel agencies, transport companies, insurance, schools, finance companies, banks, hotels, restaurants, repair shops, among others.


Extraction: these businesses refer to those activities that specialize in the extraction of natural resources, which will then be used to produce goods and services. Here are the oil, livestock, mining, fishing, logging companies, among others.

Retailers or retail sales: these are the businesses that are in charge of buying certain quantities of products and then selling them to the public in small quantities so that they can consume it.

To carry out these activities, sellers usually install a warehouse where the inventory is placed and from where the products are promoted and offered to the general public. Some examples of this type of business are electrical appliances, clothing, bazaars, food stores, hardware stores, kiosks, pharmacies, etc.

Wholesale or Wholesale: These businesses are the ones that mediate between the production and the retailers. These businesses buy large quantities of products from the former and then sell them to the latter, also in high quantities, so that they can resell it to the final consumer. Within this category are the distributors of food, beverages, construction materials, among others.

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