1. Unit 1- Understanding Business

2. What Is Business? Definition:
An organization that produces or sells goods or services to satisfy the needs, wants, and demands of consumers for the purpose of making a profit.

3. 4 Ways to Describe A Business
1) Type of Ownership;
2) Goods or Services Provided;
3) Function in the Community;
4) Types of Jobs Provided

4. Basic Definitions Need: Want: Item necessary for survival
Called essential goods or services. Examples?
Want:
Not necessary for survival,
but still desired
Called luxury goods
or services. Examples?

5. Psychological Test
1. I would prefer to win:
a) a $5000 scholarship to the University of my choice
b) $5000 to be spent at the retail stores of my choice
c) $5000 to throw an awesome party for all my friends

6. Psychological Test b) a superb sound system
2. I would prefer to have:
a) a laptop computer and colour laser printer
b) a superb sound system
c) a wardrobe from Le Chateau, Mexx, Tristan and America or Banana Republic

7. Psychological Test
3. I would select a job:
a) in an automotive assembly plant at a starting salary of $ and guaranteed wage increases of at least 4% per year.
b) As a marketing representative with I.B.M. at a starting salary of
$25000 where increases would range from 0% to 30% depending on how well I performed my job.

8. Psychological Test
4. If I had the chance to go to a party which all my friends would be at but the party was the night before a major exam, I would:
a) go to the party and risk getting a lower grade; even though I know I could still pass
b) stay home and study

9. Psychological Test
5. Assume you have to prepare a Christmas wish list today. Select the list containing the item(s) that would be at the top of your list.
List A
List B
List C
List D
List E
Food, warm clothing
Money ( living expenses or for savings)
Brand names clothes, watches, cars, video games
Designer clothes, designer perfume, iPod, iPhone.
Laptop computer, educational books, fitness equipment, etc.

10. Rating Chart Question Response Point 1 A B C 5 4 3 2 D E Total
To calculate your score on this test, determine the number of points received for each question based on the table below.
Question
Response
Point 1 A B C 5 4 3 2 D E
Total

11. What Needs Are Important To You?
Points Category Physiological/Biological Safety Social/Belonging Self - Esteem Self - Fulfillment

12. Motivation Theory- Maslow’s Hierarchy of Needs

13. Basic Definitions Producers Consumers Good Service
People who provide goods and services
Consumers
People who buy or use goods and services
Good
Items that we can see, touch, taste – tangible items.
Have monetary value.
Service
Items that we cannot see and touch – intangible items.

14. Basic Definitions Entrepreneur Not-For-Profit Organization
Person starting a business to solve a problem or take advantage of an opportunity
Is in a business to satisfy a need that is not being met in the marketplace
Not-For-Profit Organization
Business that does not seek to make
a profit
Usually a charitable organization that
helps people in need. Examples?

15. Basic Definitions Co-Branding
Businesses share space in order to reduce costs of operation and to increase the opportunity for profit

16. Economic Resources
Means through which goods and services are made available to consumers
3 Kinds of Economic Resources
1) Natural Resources
Raw materials from earth, water, air
2) Human Resources
People who create the goods or services
3) Capital Resources
Buildings, equipment, tools, factories, etc.

17. Homework
Answer Q’s 1-4, “b” only on p. 9.