Two Types Of Business Transaction Analysis

Individual Assignment: Two Different Types of Business Transactions

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Individual Assignment: Two Different Types of Business Transactions

A business transaction is a commercial activity involving an exchange of either goods or services for money or commodities between a business and its customers. Consequently, depending on the nature of the transaction, two or more people may be involved. Therefore, understanding various types of operations, including service and product, allows ventures to create a sustainable basis for making future decisions.

Considering the type of the service transaction, it entails the exchange of services for money. For instance, the tourism industry in the United

For example, Apex Mills is renowned for quality textiles; it attributes to the Application Driven Model, which involves employing a team of professionals to innovate solutions to different customer needs ("Apex Mills," 2018). Specifically, the production team assesses particular needs and crafts custom fabrics to suit those requirements. Furthermore, the custom-made technology is used to mass-produce fabrics, which have varying prices depending on the production cost incurred. Hence, the manufacture of goods is a combination of technologies, skilled personnel, high-quality raw materials, a developed production blueprint, and the analyzed target

In fact, both necessitate the understanding of the input requirements and the target market, and each transaction type emphasizes customer satisfaction. However, service provision, especially in the tourism industry, underlines on intangible goods; the customer pays for gratification, such as bird watching, visiting favorite places, and skydiving. Moreover, tourism focuses on the daily events including conference setting, travel planning, registering tourists, and computing travel expenses; hence, it is labor-intensive. Conversely, manufacturing is a capital-intensive venture; capital is necessary for hiring skilled personnel, purchasing production machinery and raw materials, and conducting marketing studies. Furthermore, the commodities produced from textile and fabric are tangible and can be customized to suit customer needs. As a result of the differences and resemblances, measures designed using the logic model show to what extent transactions may differ. Also, it helps as a guiding principle or framework for the activities that are requisite for business success. In essence, the interests of the clientele are major driving forces for both