Identify a local business for each of the following categories: Bell Ringer Activity Identify a local business for each of the following categories: Producers - Intermediaries Processors - Retailers Manufacturers - Service Wholesalers

Read to Learn Differentiate the six types of businesses. Describe the five functions of business. Discuss how the five functions of business relate to each other.

The Main Idea There are many different types of businesses. The five functions of business are involved in every one.

Functions of Businesses Graphic Organizer Types of Businesses Functions of Businesses Producers Processors Manufactures Intermediaries and Wholesalers Retailers and Service Businesses Production and Procurement Marketing Management Finance and Accounting

Producers A producer may be found in industries such as agriculture, mining, fishing, or forestry. producer a business that gathers raw goods

A processor may, for example, turn crude oil into gasoline. a business that changes raw materials into more finished products

Manufacturers Cars, CDs, and computers are examples of goods that are made by a manufacturer. manufacturer a business that makes finished products out of processed goods

Intermediaries and Wholesalers An intermediary buys goods, stores them, and then resells them. intermediary a business that moves goods from one business to another

Intermediaries and Wholesalers A wholesaler of clothing may buy thousands of jackets from several manufacturers, divide the large quantities into smaller ones, and sell them to retailers. wholesaler a business that moves good from one business to another

Retailers and Service Businesses A record store is an example of a retailer. retailer a business that purchases goods from a wholesaler and sells them to consumers, the final buyers of the goods

Retailers and Service Businesses Service businesses perform tasks rather than provide goods. Service businesses employ about three- quarters of the workforce and are rapidly increasing in numbers.

Functions of Business The five main functions of business are: Production and procurement Marketing Management Finance Accounting

Production and Procurement Production and procurement are closely related functions of business. production the process of creating, expanding, manufacturing, or improving goods and services procurement the buying and reselling of goods and services that have already been produced

Marketing involves getting consumers to buy a product or service. the process of planning, pricing, promoting, selling, and distributing ideas, goods, and services

Management is an important function of business. the process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources

Finance and Accounting Finance requires analyzing financial statements to make future decisions. finance the business or art of money management

Finance and Accounting Accounting requires attention to detail and accuracy. accounting maintaining and checking records, handling bills, and preparing financial reports for a business

How the Functions of Business Are Interdependent The functional areas of a business depend on each other. Sometimes, the functional areas of a business conflict with each other.

Example of How Functional Areas Depend on Each Other Graphic Organizer Example of How Functional Areas Depend on Each Other A furniture maker’s sales are decreasing. The accounting and finance department notice decreasing sales. If the furniture is too highly priced, more efficient procedures will have to be implemented. A new marketing plan is created. The accounting and finance department will monitor the effects of new marketing efforts.

Example of How Functional Areas Conflict with Each Other Graphic Organizer Example of How Functional Areas Conflict with Each Other Management wants to increase sales by 20 percent within three years. The production department suggests improving quality. The marketing department requests more funds for projects. Accounting says there is not enough money for either plan. The final plan involves ideas from all the functions of business.