2Objectives Identify economic needs and wants. Describe the three uses of money.Explain how business satisfies economic needs.Describe the three forms of business ownership.
3ObjectivesDescribe 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.
4Marketing Terms business need profit want sole proprietorship partnershipcorporationnonprofit corporationproductionfinancemanagementneedwanteconomic needs and wantseconomic goods and servicesexchangemoneyvalue
5Economic Needs and Wants necessary for survivalWantsomething you would like, but you could survive without it
6Economic Needs and Wants Ch. 2, Business BasicsEconomic Needs and WantsEconomic needs and wants can be satisfiedby buying somethingWhat are some of your economic wants and needs?
7Economic Needs and Wants The items you buy to satisfy economic needs and wantsare economic goods and servicesName some economic goods and services.
8Economic Needs and Wants Ch. 2, Business BasicsEconomic Needs and WantsSome needs and wants cannot be satisfiedby buying somethingWhat are some needs and wants that cannot be satisfied by buying something?
9Describe an exchange you made. Ch. 2, Business BasicsThe ExchangeAn exchange is a tradeExchanges are the basis of all businessDescribe an exchange you made.
10Describe American money. How is it consistent? Ch. 2, Business BasicsMoneyMoneyconsistent itemthat people accept in exchange for goods or workDescribe American money. How is it consistent?
11Money Without money Money is used in three ways modern business could not existMoney is used in three waysmedium of exchangeunit of valuestore of wealth
12Medium of Exchange Money is a convenient medium of exchange Paper money and coins are easy to carry
13Unit of Value Money can express The value of a product Ch. 2, Business BasicsUnit of ValueMoney can expressthe exact value of an itemthe dollar is the unit of value in the United StatesThe value of a productexpressed in dollarsis the priceMarketers use priceto set the value of a product
14Why do people save money? Ch. 2, Business BasicsStore of WealthMoney is easy to storeYou can save money until you need itWhy do people save money?
15What Is Business? Business The term business also refers to Ch. 2, Business BasicsWhat Is Business?Businessgeneral term for activitiesinvolved in the development and exchange of productsThe term business also refers toa person or group of people
16Describe some businesses in your neighborhood. What Is Business?Other terms for businessfirm, company, organization, corporation, and enterpriseDescribe some businesses in your neighborhood.
17What Is Business? Business powers the economy Ch. 2, Business BasicsWhat Is Business?Business powers the economyMoney flows from businesses to workersthen from the workers back to the businessesBusiness providesgoods and services you use everydaywages (money) people use to buy goods and services
18Payment for goods and services Ch. 2, Business BasicsMoneyPayment for goods and servicesWorkersBusinessMoneyPayment of salary, wages, and profits
19Goal of Business $ $ $ = - Businesses aim to make a profit. Ch. 2, Business BasicsGoal of BusinessBusinesses aim to make a profit.$$$=-Costs and ExpensesSalesProfitWhat is profit?
21Forms of Business Ownership Ch. 2, Business BasicsForms of Business OwnershipSole proprietorshipbusiness owned by one personwho gets all profits and bears all risksPartnershipowned by small number of people, usually two or threewho share profits and risks
22What Is a Corporation? A corporation is Ch. 2, Business BasicsWhat Is a Corporation?A corporation isa legal entity established for the purpose of doing businessexists separate from the people who own itis owned by stockholders
23Name some corporations. Ch. 2, Business BasicsWhat Is a Corporation?A corporation canbuy property, manufacture products, earn money, lose money, sue, and be suedA corporation offers limited liability to its shareholdersif a corporation is sued, the corporation pays damages from its incomethe shareholders (owners) do not payName some corporations.
24What Is a Nonprofit Corporation? Ch. 2, Business BasicsWhat Is a Nonprofit Corporation?There are two types of corporationsfor-profitnonprofitGoal of a for-profit corporation is to make a profit for its ownersGoal of a nonprofit is to benefit society
25What Is a Nonprofit Corporation? is a legal entity, like a for-profit corporationis established to provide a benefit to societycan make a profit, but . . .any profit that a nonprofit corporation earns goes back to support its cause or benefitExamples of benefits or causescharity, education, medical research, youth activities, religion, and the arts
26What Is a Nonprofit Corporation? Ch. 2, Business BasicsWhat Is a Nonprofit Corporation?ExamplesDECAAmerican Cancer SocietyGoodwillName some other nonprofit corporations.
27The Functions of Business Four functions of businessproductionmaking productsfinancehandling moneymarketingfocusing on customersmanagementplanning, coordinating, monitoring
28Production For goods, production includes farming mining construction Ch. 2, Business BasicsProductionFor goods, production includesfarmingminingconstructionmanufacturing
29Describe production that you have seen. For services, production is often the service itselfExamplesTV productionhair stylingDescribe production that you have seen.
30Finance Finance includes planning and budgeting accounting Ch. 2, Business BasicsFinanceFinance includesplanning and budgetingaccountingpaying billsreceiving paymentskeeping track of transactions
31Marketing Marketing helps the business focus on the customer Ch. 2, Business BasicsMarketingMarketing helps the business focus on the customerMarketing includessellingpromotionpricinglearning about customers
32Management Management includes Ch. 2, Business BasicsManagementManagement includesplanningcoordinatingmonitoringsupervisingManagers look at the big picture and lead workers to make the business better
33Review Explain the three uses of money. Ch. 2, Business BasicsReviewExplain 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?
34Glossarybusiness. 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.
35Glossaryeconomic 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.
36Glossarymanagement. 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.
37Glossarynonprofit 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.
38Glossaryproduction. 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.
39Glossary value. How much something is worth. want. Something you desire but you could function without.