1. Business Foundations
Lesson 5-1: The Basics…

2. Learning Goals Discuss the role of business in the U.S. economy.
Describe the three major types of businesses

3. Impact of Business
Most businesses operate to generate profit, but they also have an important impact on the economy
Wages to workers
Purchasing goods and services from other businesses
Creation of new jobs
Attracting other businesses

4. Business Activities
While there are multiple sizes, locations, and types of businesses, they all perform 6 basic functions:
Generating Ideas: the business starts with an idea, continually improves on ideas, and develops new ideas
Raising Capital: businesses need money to operate; funds can come from loans, operations, and re investment of profits

5. Business Activities (continued)
Employing and Training Personnel: businesses need human resources, they must be recruited, hired, trained, and compensated
Buying Goods and services: businesses need goods and services to perform their operations. These range from raw materials to finished products.

6. Business Activities (continued)
Marketing: businesses must work to provide the goods and services that customers want, make customers aware, and encourage sales
Maintaining Records: records allow businesses to track performance and make decisions.

7. Producers
Producers - businesses that create products and services for individuals and other businesses
Producers include extractors, farmers, manufacturers, etc.
All business activities start with producers

8. Intermediaries
Intermediaries - businesses involved in selling goods and services to consumers and other businesses
Goods and services are made by producers, then distributed by intermediaries
Common intermediaries include wholesalers and retailers
Sometimes referred to as “the middleman”

9. Service Businesses
Service Business- a business that carries out activities for its customers instead of selling them products
Examples include dentists, lawyers, maids, painters, and trainers
Businesses and consumers use services often
Service businesses are among the fastest growing parts of the economy

10. Learning Goals I can discuss the role of business in the U.S. economy.
I can describe the three major types of businesses

11. Business Foundations
Lesson 5-1: The Basics…