Product

A good, idea, method, information, object or service created as a result of

a process and serves a need or satisfies a want. It has
a combination of tangible and intangible attributes (benefits, features, functions, uses) that
a seller offers a buyer for purchase. For example a seller of a toothbrush not only offers the
physical product but also the idea that the consumer will be improving the health of their
teeth.

Franchising is the practice of the right to use a firm's successful business model and brand
for a prescribed period of time. The word "franchise" is of Anglo-French derivation
from franc, meaning freeand is used both as a noun and as a (transitive) verb. For the
franchiser, the franchise is an alternative to building "chain stores" to distribute goods that
avoids the investments and liability of a chain. The franchisor's success depends on the
success of the franchisees. The franchisee is said to have a greater incentive than a direct
employee because he or she has a direct stake in the business.
Licensing
A licensor may grant a license under intellectual property laws to authorize a use (such as
copying software or using a (patented) invention) to a licensee, sparing the licensee from a
claim of infringement brought by the licensor. A license under intellectual property
commonly
has
several
components
beyond
the
grant
itself,
including
a term, territory, renewal provisions, and other limitations deemed vital to the licensor.
Product Based Business
Both product- and service-based businesses sell a product. The ultimate difference between
the two is that the product business actually sells a physical, tangible product, while the
service business owner sells his skills as the main product. In the service-based business,
potential clients invest in the salesperson or owner, which makes the client relationship even
more valuable and important than in the product-based business. Service businesses rely on
people and the client experience, which can be risky. Product-based businesses, on the other
hand, can be assured that their product is going to be the same from customer to customer,
making the customer experience fairly predictable.
Trading Based Business
Trading companies are businesses working with different kinds of products which are sold
for consumer, business or governmentpurposes. Trading companies buy a specialized range
of products, maintain a stock or a shop, and deliver products to customers.
Different kinds of practical conditions make for many kinds of business. Usually two kinds of
businesses are defined in trading. Importers or wholesalers maintain a stock and deliver

products to shops or large end customers. They work in a large geographical area, while
their customers, the shops, work in smaller areas and often in just a small neighbourhood.
Rack Jobber
Wholesaler that provides racks of merchandise for
retail locations and split the profits obtained from sales between the
two parties. Convenience stores are often made up various rack jobbers from large and
small wholesalers. For example, the rack of chips in a store from Frito Lay would be a
considered a rack jobber.
Service-Based Business
A commercial enterprise that provides work performed in an expert manner by
an individual or team for the benefit of its customers. The typical service business
provides intangible products, such as accounting, banking, consulting, cleaning,
landscaping, education, insurance, treatment, and transportation services.
Manufacturing Based
Automation of production processes assisted by knowledge based systems such as artificial
intelligence or expert systems.
Home Based Business
Small business operated out of the primary residence of the owner(s). A home business
typically does not have a large number of employees. Small businesses are often started as
a home business in order to minimize initial expenses. Owners of home business must still
be license to do business in the state and may have to adhere to other regulations.

Distributorship
Arrangement under which a manufacturer grants a distributor the right to appoint subdistributors within a specified geographical area.
Indentor

Order for goods (placed often through a local or foreign agent of a foreign supplier) under
specified conditions of sale, the acceptance of which by the supplier (or the agent)
constitutes a contract of sale.