2. Free Enterprise System encourages individuals to start and operate their own business in a competitive system, without government involvement Marketplace determines prices through interaction of supply and demand US has modified system since we have government involvement on a limited basis. Freedom of Ownership Business ownership – entrepreneurs intellectual property rights patent – you own the rights to an item or idea trademark – word, symbol, or color that identifies a good or service and it cannot be used by anyone but the owner copyright – involves anything that is authored by an individual. the author holds exclusive right to reproduce or sell work

3. RIM out to patent BlackBerry slider What do you get if you mesh a dual-orientation handset together with a slide-out keyboard and a tracker ball? Potentially, the next BlackBerry from Research in Motion (RIM), if its latest patent application is anything to go by. RIM to add a slide-out keyboard to the BlackBerry? The patent, filed as number 20080051041 with the US Patent and Trademark Office, is for a “Hybrid portrait-landscape handheld device with trackball navigation and Qwerty hide-away keyboard”. Since the Qwerty keyboard’s hidden ‘underneath’ the phone’s screen, it looks very different to existing BlackBerry models, such as the Pearl 8120

5. The following categories of work have copyright protection: (1) literary works (2) musical works, including any accompanying words (3) dramatic works, including any accompanying music (4) pantomimes and choreographic works (5) computer databases (6) pictorial, graphic, and sculptural works (7) motion pictures and other audiovisual works (8) architectual works (9) sound recordings

6. Competition struggle for customers price competition – focus on sale price of product or service nonprice competition – compete on factors not related to price monopoly – exclusive control over a product or means of producing it Business risk – potential of loss or failure

8. Supply and Demand supply – amount of goods producers are willing to make and sell demand – refers to consumer willingness and ability to buy products when supply and demand interact it creates different conditions surplus - supply exceeds demand shortages – demand exceeds supply equilibrium – supply equals demand

9. Project Non price competition: look up hybrid cars and compare prices to gasoline engine, and electric car prices. Use edmunds.com Price competition – 42” Plasma or LCD TV. Discuss prices and why they differ. (Features?, etc) Pick a product. Determine if it price/nonprice competition and compare prices of the product.

10.  Types of Business – business can be classified by its size and scope, its purpose, its place within an industry. ◦ Size and Scope – Large or small. Scope refers to extent of business operations  Small - < 100 employees. Operated by 1 or few individuals. 95% of all businesses in US, and employ over 50% of private sector  Large - >1,000 employees

11. ◦ Domestic vs. Global  Domestic sells in own country. Growth is limited  Global sells in more than one country. Purpose – For-Profit vs. Nonprofit for profit - seeks to make money from its operations nonprofit - uses money it makes to fund cause identified in charter of business

12.  Purpose (continued) ◦ Public vs. Private sector  Public – government  Private – non – government Industry – group of establishments primarily engaged in producing or handling same product or group of products or services Industrial Market Extractors, Manufacturers, Wholesalers, Retailers, Service

13.  Functions of Business ◦ Production and Procurement  Production – creating, expanding, manufacturing, or improving on goods and services  Procurement – buying and reselling goods that have all ready been produced. Retail and wholesale businesses function in this manner

14. ◦ Marketing  All activities from time product leaves manufacturer until reaches consumer are marketing activities  Role is to provide support to buying and selling functions

15. ◦ Management  Process of achieving company goals by effectively using resources thru planning, organizing and controlling.  Planning – establishing company objectives  Organizing – specific operations like scheduling, record keeping, delegating  Controlling – overseeing and analyzing budgets, financial statements.

16.  Choose company that produces product you use. Answer following questions ◦ Large or small ◦ Domestic or global ◦ For profit or nonprofit ◦ Public or private ◦ Industry. ◦ Manufacturer, wholesalers, retailers ◦ Examples of marketing activities