Merchandising
Business
This
type of business buys products at wholesale price and sells the same at retail
price. They are known as "buy and sell" businesses. They make profit
by selling the products at prices higher than their purchase costs.
Manufacturing
Business
Unlike a
merchandising business, a manufacturing business buys products with the
intention of using them as materials in making a new product. Thus, there is a
transformation of the products purchased.
