A2 FINANCIAL CHARACTERISTICS OF DIFFERENT BUSINESSES
There are three main categories of business:
- Manufacturing businesses – that sell products that have been converted into a different form from those that they bought.
- Buying and selling businesses – whether retail or wholesale, that sell products that are, generally, unchanged from those that they bought.
- Service businesses – that generally do not sell tangible products at all.
The following brief notes summarise their main financial characteristics.
MANUFACTURING BUSINESSES
Manufacturing businesses usually have the following financial characteristics:
- They have a requirement for non-current assets, such as buildings, plant and machinery.
- They carry substantial inventories, of three ...
Get Finance for IT Decision Makers, 3rd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
