Types of Businesses and Their Activities

Which of the following is NOT a type of business classified by the work activities performed?

• Producers

• Processors

• Manufacturers

• Consumers

What are raw goods?

• Materials derived from natural resources

• Products ready for sale to consumers

• Goods that have been processed in factories

• Items that are imported from other countries

Which of the following is an example of a producer?

• Farming

• Cotton mills

• Juice factories

• Food processors

Processors are businesses that:

• Change raw goods into a more finished form

• Distribute finished goods to consumers

• Develop new business strategies

• Provide financial services

Which of the following is an example of a processor?

• Oil refineries

• Automobile factories

• Farming

• Service firms

Manufacturers change raw or processed goods into what?

• Finished goods

• Raw goods

• Processed goods

• Natural resources

A clothing factory is best categorized as which type of business?

• Manufacturer

• Producer

• Processor

• Service firm

Explain the difference between a producer and a manufacturer, using examples from the list provided.

• A producer develops products from raw goods, such as farming or mining, while a manufacturer changes raw or processed goods into finished goods, such as clothing factories or automobile factories.

• A producer sells finished goods to consumers, while a manufacturer only processes raw materials.

• A producer provides services, while a manufacturer distributes goods.

• A producer is a type of service firm, while a manufacturer is a type of intermediary.

Which of the following best describes the role of intermediaries in business?

• They manufacture raw materials.

• They are referred to as the middleman and move finished goods from one business to another.

• They provide only financial services.

• They only sell goods to consumers.

Which of the following is an example of a service firm?

• Wholesaler

• Beauty salon

• Manufacturer

• Retailer