Module 2

• SERVICE COMPANIES

• MERCHANDISING COMPANIES

• MANUFACTURING CONMPANIES

Firms that generally use their employees to provide intangible products or services to customers. These services include professional skills, advice, expertise, and other related products.

OPERATING CYCLE OF  SERVICE COMPANIES

• Sells tangible products. This type of business buys finished or almost finished goods from their suppliers and resell the same to customers. 

• Primarily earn revenues from the sale of goods of merchandise (sales revenue or sales)

• RETAILER - sells goods directly to customers.

• WHOLESALER - sells goods to retailers.

OPERATING CYCLE OF MERCHANDISING COMPANIES

buy materials, convert them into products, and then sell the products to other companies or to the final consumers. 

OPERATING CYCLE OF MANUFACTURING BUSINESS