1. The Motive of Business
Why do businesses supply goods and services?
Why do people start their own business?

2. 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.

3. 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

4. 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

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

6. How to Define Business
Your wants and needs are usually satisfied by a business.
Businesses provide consumers with necessities, such as food, clothing, housing, medical care, and transportation.

7. How to Define Business
Businesses also provide goods and services that make life easier and better.
Businesses seek to make a profit.

8. 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.

9. 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

10. The Significance of Competition
What are some different ways businesses can compete?
Superior customer service, fastest service, demonstrate concern for community, employees, or environment.
What are two ways that companies can compete on the basis of concern for the environment?
Conserve and recycle, cause minimal damage to the environment

11. Activities of a Business
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

12. 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

13. Creating a TV commercial
Activity
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
Creating a TV commercial
Paying Taxes
Market Research
Creating a product
Market Research

14. 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.

15. 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

16. 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.

17. 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.

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

19. 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

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