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3. Read to Learn
Explain how profit and competition motivate businesses.
List the activities businesses undertake when developing products and services.
Explain how business impacts you and how you impact business.

4. 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.

5. Key Concepts
How to Define Business
Business Activities
Business and You

6. Key Terms
any commercial activity that seeks profit by providing good and services in exchange for money
business
the money left over after a business has paid the cost of providing its goods and services
profit

7. Key Terms
the contest between businesses to win customers
competition
the act of gathering and analyzing information about the wants, needs, and preferences of consumers in a certain market
market research

8. Key Terms
consumer
a person who uses goods or services

9. 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

10. 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

11. 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.

12. 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.

13. 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

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

15. 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

16. 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

17. 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.

18. 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

19. 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.

20. 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.

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

22. 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

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

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