Chapter 6 Business Ownership and Operation 6.2 Types and Functions of Businesses

Types of Businesses Producer: a business that gathers raw goods Raw goods are materials gathered in their original state from natural resources. Processor: a business that changes raw materials into more finished products. Processed goods are made from raw goods that require further processing. Manufacturers: a business that makes finished products out of processed goods. Intermediaries and Wholesalers Intermediaries: a business that moves goods from one business to another Wholesalers: a business that distributes goods Retailer: a business that purchases goods from a wholesaler and sells them to consumers. Service Business: businesses that perform tasks rather than provide goods.

Functions of Business Production: the process of creating, expanding, manufacturing, or improving goods and services. Procurement: the buying and reselling of goods that have already been produced. Marketing: the process of planning, pricing, promoting, selling, and distributing ideas, goods, and services Getting customers to buy products and services Management: the process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources. Financing: the business of money management Requires the analysis of financial statements to make future decisions Accounting: involves maintaining and checking records, handling bills, and preparing financial reports for a business

How the Functions are Interdependent Interdependent: each function is dependent upon other functions Sometimes they conflict with each other. New ideas must go through all functions to see what affect it will have on the business. Companies benefit when all functional areas work together.

Homework Review questions on pg 103, 1-3. Complete the Reading activity and Graphic Organizer for Section 6.2 Quiz Thursday/Friday