1. What is a Business?

2. Review: Goods and Services  These are things that satisfy people’s wants and needs…  Goods: Cars, computers, phones, candy, etc.  Services: Doctor, Accountant, Librarian (provide a service), etc.  Look at your list of wants/needs and see whether you listed goods, services, or both.

3. What is a Business?  An organization that produces or sells goods or services to satisfy the needs and wants of consumers to make a profit.  Garage sale or Telus Mobility?  Businesses come in all sizes and shapes – some are local, some are regional, while others are national, and some are global

4. Local Business

5. Regional Business  http://www.workbc.ca/Statistics/Regional -Profiles/Pages/Regional-Profiles.aspx http://www.workbc.ca/Statistics/Regional -Profiles/Pages/Regional-Profiles.aspx  Be sure to fill this information into your notes!

6. National Business

7. Global Business As of 2015, over 1 billion people are using Microsoft products

8. For-Profit or Non-Profit?  Profit – an organization that produces or sells goods or services to satisfy the needs, wants, and demands of consumers for the purposes of making a profit ($$$)  Non-Profit – an organization that does not seek profit as its primary goal, but raises funds for people for a specific goal

9. Examples of For-Profit Businesses

10. For-Profit Business  Goal: To make a profit by supplying goods and services to meet consumer demands  Profit = The income left over once all costs and expenses are paid  Revenue = Income generated from the sale of goods/services  Expenses – includes employee wages, supplies/materials needed for the business (paper, printer ink, etc.)  Costs – the amount of money needed at each stage of production (buying raw materials, manufacturing those materials into a product, selling the product, etc.)

11. Simply remember…  Revenue – Expenses = Profit (or Loss)  Example: If a store sells gym equipment for $500, and costs & expenses add up to $350, the profit on the sale is $150  $500 - $350 = $150 Revenue Expenses Profit (or Loss)

12. Now it’s your turn…  If a sporting good store sells a pair of shoes for $130, and the costs and expenses for the shoes total $50, what is the profit on the sale?  Remember: Revenue – Expenses = Profit (or Loss)

13. Profit?  Revenue – Expenses = Profit (or Loss)  $130 - $50 = $80 Revenue Expenses Profit

14. Importance of Profit  Obviously, a business needs profit in order to be successful  Profit = more $$$ going back into the business for growth and expansion  Profit = more $$$ to buy better goods or improved services  Profit = more $$$ in the owner’s pocket

15. No Profit?  Sometimes, businesses will not make a profit.  If a business makes no profit, but the owner is still able to pay debts (rent/lease for space, paying for raw materials, employee wages), the business is considered solvent.  Solvency means being able to pay debt and meet financial obligations.

16. Non-Profit Organizations  A non-profit organization is one that does not seek profit as its primary motive.  Seeks to raise money for a specific goal  Example: Charities are non-profit organizations

17. Now it’s your turn…  In MS Word, copy and paste 6 different pictures to represent the following: For-profit business Non-profit business Local Business Regional Business National Business Global Business Label each picture with the business type! Due Thurs end of class: Print and submit to Block B basket