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Ch. 2, Business Basics.

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Presentation on theme: "Ch. 2, Business Basics."— Presentation transcript:

1 Ch. 2, Business Basics

2 Objectives Identify economic needs and wants.
Describe the three uses of money. Explain how business satisfies economic needs. Describe the three forms of business ownership.

3 Objectives Describe the difference between a for-profit corporation and a nonprofit corporation. List the four functions of business and give an example of each. Explain the role of marketing in business.

4 Marketing Terms business need profit want sole proprietorship
partnership corporation nonprofit corporation production finance management need want economic needs and wants economic goods and services exchange money value

5 Economic Needs and Wants
necessary for survival Want something you would like, but you could survive without it

6 Economic Needs and Wants
Ch. 2, Business Basics Economic Needs and Wants Economic needs and wants can be satisfied by buying something What are some of your economic wants and needs?

7 Economic Needs and Wants
The items you buy to satisfy economic needs and wants are economic goods and services Name some economic goods and services.

8 Economic Needs and Wants
Ch. 2, Business Basics Economic Needs and Wants Some needs and wants cannot be satisfied by buying something What are some needs and wants that cannot be satisfied by buying something?

9 Describe an exchange you made.
Ch. 2, Business Basics The Exchange An exchange is a trade Exchanges are the basis of all business Describe an exchange you made.

10 Describe American money. How is it consistent?
Ch. 2, Business Basics Money Money consistent item that people accept in exchange for goods or work Describe American money. How is it consistent?

11 Money Without money Money is used in three ways
modern business could not exist Money is used in three ways medium of exchange unit of value store of wealth

12 Medium of Exchange Money is a convenient medium of exchange
Paper money and coins are easy to carry

13 Unit of Value Money can express The value of a product
Ch. 2, Business Basics Unit of Value Money can express the exact value of an item the dollar is the unit of value in the United States The value of a product expressed in dollars is the price Marketers use price to set the value of a product

14 Why do people save money?
Ch. 2, Business Basics Store of Wealth Money is easy to store You can save money until you need it Why do people save money?

15 What Is Business? Business The term business also refers to
Ch. 2, Business Basics What Is Business? Business general term for activities involved in the development and exchange of products The term business also refers to a person or group of people

16 Describe some businesses in your neighborhood.
What Is Business? Other terms for business firm, company, organization, corporation, and enterprise Describe some businesses in your neighborhood.

17 What Is Business? Business powers the economy
Ch. 2, Business Basics What Is Business? Business powers the economy Money flows from businesses to workers then from the workers back to the businesses Business provides goods and services you use everyday wages (money) people use to buy goods and services

18 Payment for goods and services
Ch. 2, Business Basics Money Payment for goods and services Workers Business Money Payment of salary, wages, and profits

19 Goal of Business $ $ $ = - Businesses aim to make a profit.
Ch. 2, Business Basics Goal of Business Businesses aim to make a profit. $ $ $ = - Costs and Expenses Sales Profit What is profit?

20 Ch. 2, Business Basics

21 Forms of Business Ownership
Ch. 2, Business Basics Forms of Business Ownership Sole proprietorship business owned by one person who gets all profits and bears all risks Partnership owned by small number of people, usually two or three who share profits and risks

22 What Is a Corporation? A corporation is
Ch. 2, Business Basics What Is a Corporation? A corporation is a legal entity established for the purpose of doing business exists separate from the people who own it is owned by stockholders

23 Name some corporations.
Ch. 2, Business Basics What Is a Corporation? A corporation can buy property, manufacture products, earn money, lose money, sue, and be sued A corporation offers limited liability to its shareholders if a corporation is sued, the corporation pays damages from its income the shareholders (owners) do not pay Name some corporations.

24 What Is a Nonprofit Corporation?
Ch. 2, Business Basics What Is a Nonprofit Corporation? There are two types of corporations for-profit nonprofit Goal of a for-profit corporation is to make a profit for its owners Goal of a nonprofit is to benefit society

25 What Is a Nonprofit Corporation?
is a legal entity, like a for-profit corporation is established to provide a benefit to society can make a profit, but . . . any profit that a nonprofit corporation earns goes back to support its cause or benefit Examples of benefits or causes charity, education, medical research, youth activities, religion, and the arts

26 What Is a Nonprofit Corporation?
Ch. 2, Business Basics What Is a Nonprofit Corporation? Examples DECA American Cancer Society Goodwill Name some other nonprofit corporations.

27 The Functions of Business
Four functions of business production making products finance handling money marketing focusing on customers management planning, coordinating, monitoring

28 Production For goods, production includes farming mining construction
Ch. 2, Business Basics Production For goods, production includes farming mining construction manufacturing

29 Describe production that you have seen.
For services, production is often the service itself Examples TV production hair styling Describe production that you have seen.

30 Finance Finance includes planning and budgeting accounting
Ch. 2, Business Basics Finance Finance includes planning and budgeting accounting paying bills receiving payments keeping track of transactions

31 Marketing Marketing helps the business focus on the customer
Ch. 2, Business Basics Marketing Marketing helps the business focus on the customer Marketing includes selling promotion pricing learning about customers

32 Management Management includes
Ch. 2, Business Basics Management Management includes planning coordinating monitoring supervising Managers look at the big picture and lead workers to make the business better

33 Review Explain the three uses of money.
Ch. 2, Business Basics Review Explain the three uses of money. What are the three forms of business ownership? What are the four functions of business? What is the role of marketing in business?

34 Glossary business. General term for all the activities involved in the development and exchange of products. Also used to refer to a specific person or group of people who are involved in the development and exchange of products; also called firm, company, organization, corporation, or enterprise. corporation. Legal entity established for the purpose of doing business.

35 Glossary economic goods and services. Products that you buy to satisfy economic needs. economic needs and wants. Needs and wants that you can satisfy by buying something. exchange. To trade something of value for something you want. finance. The function of business that includes all activities involving money.

36 Glossary management. The function of business that includes all the activities required to plan, coordinate, and monitor a business. money. A consistent item that people accept in exchange for goods or work. need. Something that is necessary for survival.

37 Glossary nonprofit corporation. Legal entity, like a for-profit corporation; however, instead of profit, its main goal is to achieve something to benefit society; also called nonprofit, nonprofit organization, or not-for-profit organization. partnership. Business owned by a small number of people, usually two or three.

38 Glossary production. Any activity related to making a product (good, service, or idea). profit. Money that a business has left after all the expenses and costs of running the business are paid. sole proprietorship. Business owned by one person.

39 Glossary value. How much something is worth.
want. Something you desire but you could function without.


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