A Look at Wants and Need Chapter 1 Businesses satisfy peoples basic needs all the way to their lavish wants. Competition and profit motivate these businesses to continually strive for business Chapter 1

Learning Objectives After completing this chapter you will be able to: State the differences between wants and needs Describe how limited resources relate to wants Identify business activities that are used for products and services List the two factors that motivate businesses Explain the relationship between business and you.

Key Words Wants Needs Goods Services Resource Business Profit Competition Consumer

Business in Today’s World How would you revamp your space if you could? On the worksheet, write your answers. Wants and Needs of Your Sanctuary

Revamp Bedroom Worksheet Amount to Spend From $_______to $____________ Size and Shape of Bedroom Color Theme Curtains Posters Doorway (for example: bead curtains, hanging shapes and so on) Closet (for example:walk-in, organized, sliding doors, mirror, rotating clothes rack, and so on) Extras (for example: private bathroom, window seat, entertainment area, sitting room, fireplace,mini refrigerator, desk bookshelves, and so on)

An Abundance of Wants Wants are things you wish you could have. Private wants Mountain bike New car Public wants Highways Education

Satisfying Wants and Needs Needs are necessary wants Food, shelter and clothing Businesses assess consumer needs and provide goods and services. Goods can be physically weighed and measured Services are tasks that people perform

Unlimited Wants, Limited Resources Resources – anything that people can use to make or obtain what they need or want. Examples: Fuel timber Labor Money Resources limit the number of wants people satisfy.

Decision-Making Process Identify the problem List the alternatives Determine the pros and cons Make the best decision Evaluate your decision People make the most of their resources by making the right choices about what to buy. The decision making process is a step by step method to carefully consider alternatives that result in better choices.

Fast Review Define wants, needs, goods, services, and resources. What is the difference between public wants and private wants? List the steps in a decision-making process.

What is Business Business is an activity that seeks profit by providing goods and services to others

Business Activities Determine opportunities for products and services Evaluate the demand for products and services Obtain funding set up and manages all factors for producing goods and services Produces the goods and services Market the goods and services Keeps records to satisfy government requirements and analyze how to improve production and sales. A business generally goes through a sequence of activities when developing a new or improved product or service. A busiess:

Business Motivations Profit is the amount of money left over after a business has paid for the cost of producing its goods and services. Competition – the contest between businesses to win customers

Business and You You as a Consumer You as a Wage Earner A consumer is a person who selects, purchases, uses, or disposes of goods and services You as a Wage Earner

Fast Review Explain the functions of business. List the business activities that happen behind every product or service How does business affect you as a consumer and as a wage earner?

Self Discovery in Business The value of knowledge What do you like?

Fast Review Why is it important to understand business today? How will knowledge help your career?

Chapter 1 Review Summary

Wants are things you wish you could have Needs are things you need for survival, like food, shelter and clothing Goods satisfy you wants and needs for material things that you can touch Services satisfy some of your wants for things you cannot see or touch

Limited resources affect the number of wants

Business activities include determining opportunities for Products or services Evaluating the demand Obtaining the funding Setting up and managing all factors needed for production Producing the goods or services Keeping records

Both profit and competition motivate business to meet wants and needs

Business affects You affect business Consumers by the products or services it decides to offer You as a wage earner by determining the types of jobs that will be available You affect business What products and services you buy How you work