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The Main Idea Businesses make money by offering goods and services to satisfy the wants and needs of consumers and other businesses. In this way, wants and needs drive the U.S. economy.

Which of these things do you want? Which do you need? Graphic Organizer Suppose you had $10. You could buy lunch or go to a movie. Need Want Lunch Movie Which of these things do you want? Which do you need?

Wants and Needs Drive the Economy Businesses make money by satisfying the wants and needs of consumers and other businesses. In this way, wants and needs drive the economy.

An Abundance of Wants and Needs Wants and needs determine what products and services businesses provide. wants things that you do not have to have to survive needs things that you must have to survive

Graphic Organizer Basic Needs Private Wants Public Needs Food Water Shelter A family may want a new kitchen table A business may want a new computer system Highways Hospitals

Satisfying Wants and Needs Businesses provide goods and services to satisfy the wants and needs of businesses and consumers. goods physical products services tasks that businesses perform for consumers

How Resources Limit the Ability to Satisfy Wants and Needs No one has enough resources to satisfy all of their wants. resources items that people can use to make or obtain what they need or want

Making the Most of Your Resources You can make the most of your resources by making careful decisions about what to buy.

The Decision-Making Process Figure 1.1 The Decision-Making Process Identify the situation. Step 1 Step 2 Identify possible courses of action. Determine the pros and cons. Step 3 Make the decision. Step 4 Evaluate the decision. Step 5

You work as an event planner for a local company You work as an event planner for a local company. You are in charge of hiring a caterer for the company’s 10th anniversary celebration. You have bids from four caterers in town. One of the bids is from a caterer who is an old friend. His bid is higher than the three others. Decision Making Would your relationship with the caterer affect which company you would hire? Explain your answer.

Answer The event planner should recuse himself or herself from the decision-making process due to the conflict of interest. The employee has an ethical obligation to act in the best interests of the company.

Describe the differences between public wants and private wants. Public wants are shared by many people; individuals or small groups of people have private wants.

Define resources. Resources are items people use to make or obtain what they need or want. Examples of resources include money, fuel, and labor.

List the steps in the decision-making process. identify the situation, list possible courses of action, determine pros and cons, make the decision, evaluate the decision

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The Main Idea Businesses seek profit by providing goods and services in exchange for money. Companies thrive on competition, the contest between businesses to win customers. Competition and profit motivate businesses to continually strive to find new ways to satisfy customers.

Your wants and needs are usually satisfied by a business. How to Define Business Your wants and needs are usually satisfied by a business. business any commercial activity that seeks profit by providing goods and services to others in exchange for money

Businesses seek to make a profit. How to Define Business Businesses seek to make a profit. profit the money left over after a business has paid the cost of providing its goods and services

How to Define Business Businesses provide consumers with necessities, such as food, clothing, housing, medical care, and transportation. Businesses also provide goods and services that make life easier and better.

The Motive of Business: To Make a Profit Without a profit, a company cannot survive. The wealth created by businesses benefits the entire community because businesses pay taxes and provide jobs.

The Significance of Competition Competition happens when businesses continually try to improve their products and services and do better than one another. competition the contest between businesses to win customers

The Significance of Competition Offer quality products Offer outstanding service Offer competitive prices

Graphic Organizer The success of a business depends on how well key activities are coordinated, managed, and performed. Identifying opportunities for products and/or services Evaluating the demand for products and/or services Managing the production of goods and/or services Marketing the goods and/or services Keeping records to satisfy government requirements and improve processes

Some business activities should be supported by market research. the act of gathering and analyzing information about the wants, needs, and preferences of consumers in a certain market

Target Market A target market is a group of people identified as those most likely to become customers. Develop a list of shoe stores in your area and the likely target market for each.

Businesses make many decisions that impact you, the consumer. Business and You Businesses make many decisions that impact you, the consumer. consumer a person who uses goods and services

Businesses Affect Consumers Graphic Organizer Businesses Affect Consumers Businesses decide what goods and services to produce. Businesses affect the consumer when a product is discontinued. Business affects you as a wage earner because they provide jobs.

Consumers Also Affect Businesses Graphic Organizer Consumers Also Affect Businesses Consumers decide what kind of goods and services they want. Consumers decide where they will buy the goods and services they want. The decisions of consumers can determine the success or failure of a business.

Define business Business is any activity involving the exchange of money for goods and services.

List the activities that every business undertakes when developing new products and services. identify opportunities, evaluate demand, obtain money, manage production, market products, keep records

Describe why it is important to understand how business impacts you and how you impact business. Answer pending.

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