Trading, Service & Manufacturing Businesses (Cambridge International IGCSE Accounting)

Trading, service & manufacturing businesses

What is a trading business?

• A trading business buys and sell goods

  • Examples include grocery stores, car dealerships, etc

What is a service business?

• A service business provides a service

• The business does not buy or sell goods

  • Examples include insurance company, accountants, travel agents, hairdresser etc

What is a manufacturing business?

• A manufacturing business produces goods for sale

  • Examples include clothes factory, food factory, etc

Can a business be a combination of these?

• A business can do a mix of trading, service and manufacturing

  • For example, a sandwich shop might create their own sandwiches but buy crisps and snacks for resale

Which businesses can be trading, service and manufacturing businesses?

• Any type of business can be a trading, service or manufacturing business

  • For example, a sole trader can be a manufacturing business and a limited company can be a service business