Presentation on theme: "Read to Learn Differentiate the six types of businesses. Describe the five functions of business. Discuss how the five functions of business relate to."— Presentation transcript:
2Read to LearnDifferentiate the six types of businesses.Describe the five functions of business.Discuss how the five functions of business relate to each other.
3Functions of Businesses Graphic OrganizerTypes of BusinessesFunctions of BusinessesProducersProcessorsManufacturesIntermediaries and WholesalersRetailers and Service BusinessesProduction and ProcurementMarketingManagementFinance and Accounting
4Example – Grows the cotton ProducersA producer may be found in industries such as agriculture, mining, fishing, or forestry.Example – Grows the cottonproducera business that gathers raw goods
5A processor may, for example, turn crude oil into gasoline. a business that changes raw materials into more finished productsExample – turns thecotton into fabric
6ManufacturersCars, CDs, and computers are examples of goods that are made by a manufacturer.manufacturera business that makes finished products out of processed goodsExample – uses thefabric to make a shirt
7Intermediaries and Wholesalers An intermediary buys goods, stores them, and then resells them.intermediarya business that moves goods from one business to anotherExample – Sells theshirt to Gap
8Intermediaries and Wholesalers A wholesaler of clothing may buy thousands of jackets from several manufacturers, divide the large quantities into smaller ones, and sell them to retailers.wholesalera business that moves good from one business to another
9Retailers and Service Businesses A record store is an example of a retailer.retailera business that purchases goods from a wholesaler and sells them to consumers, the final buyers of the goodsExample – Sells theshirt to you
10Retailers and Service Businesses Service businesses perform tasks rather than provide goods.Service businesses employ about three- quarters of the workforce and are rapidly increasing in numbers.
11Functions of BusinessThe five main functions of business are:Production and procurementMarketingManagementFinanceAccounting
12Production and Procurement Production and procurement are closely related functions of business.productionthe process of creating, expanding, manufacturing, or improving goods and servicesprocurementthe buying and reselling of goods and services that have already been produced
13Marketing involves getting consumers to buy a product or service. the process of planning, pricing, promoting, selling, and distributing ideas, goods, and services
14To Advertise or NotAdvertising is used to influence consumers to buy one product or service over another.
15Management is an important function of business. the process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources
16Finance and Accounting Finance requires analyzing financial statements to make future decisions.financethe business or art of money management
17Finance and Accounting Accounting requires attention to detail and accuracy.accountingmaintaining and checking records, handling bills, and preparing financial reports for a business
18How the Functions of Business Are Interdependent The functional areas of a business depend on each other.Sometimes, the functional areas of a business conflict with each other.
19Example of How Functional Areas Depend on Each Other Graphic OrganizerExample of How Functional Areas Depend on Each OtherA furniture maker’s sales are decreasing.The accounting and finance department notice decreasing sales.If the furniture is too highly priced, more efficient procedures will have to be implemented.A new marketing plan is created.The accounting and finance department will monitor the effects of new marketing efforts.
20Example of How Functional Areas Conflict with Each Other Graphic OrganizerExample of How Functional Areas Conflict with Each OtherManagement wants to increase sales by 20 percent within three years.The production department suggests improving quality.The marketing department requests more funds for projects.Accounting says there is not enough money for either plan.The final plan involves ideas from all the functions of business.
21What is the difference between a producer and a processor? A producer gathers or creates raw products. A processor changes raw products into more finished products.
22Identify the five functions of business. production and procurement, marketing,management, finance, and accounting
23Give an example of how the accounting and finance functions can affect a business’s marketing and production processes.If the financials show little profits, newmarketing plans may be developed and new production procedures may be implemented.