Types of Businesses

• Producers• Intermediaries• Service Businesses

Producers• Create the products and services used by

individuals and other businesses• Extractor– A business that takes resources from nature for

direct consumption or for use in developing consumption or for use in developing other products

– Examples: Pump Oil, Mine Coal, Cut Timber

Producers

• Farmers cultivate land and use other natural resources to grow crops and livestock for compensation.

• Manufacturers get supplies from other producers and convert them into products.

Intermediaries

• Businesses involved in selling the goods and services of producers to consumers and other businesses

• Retailers and wholesalers• Most specialize - Transportation companies,

advertising agencies, storage centers, data processing centers

Service Businesses

• They offer something that is intangible• Carries out activities that are consumed by its

customers• Does not offer products to sell• Examples?– Dentists– Lawyers– Painters

Pass the pen -

• P – Producer• I – Intermediaries• S – Service Business

• Can a company be more than one?

Handout – July Employment

• In which industries is employment growing?• In which industries is employment shrinking?• Which of the PIS is growing the most

according to the charts?• Why do you think it is growing?

Which is the fastest growing business?

• Producers• Intermediaries• Service Businesses

• Over 60% of all US Employment is in service businesses