BUSINESS CONCEPTS ESSENTIAL QUESTION What roles does business

BUSINESS CONCEPTS

ESSENTIAL QUESTION � What role(s) does business play in our society?

WHAT DO YOU KNOW ABOUT A BUSINESS �Use the handout � KWL � 1 st column: list 3 -4 things you know about business � 2 nd column: list 3 -4 things you would like to know about business

WHAT IS A BUSINESS? �An organization created to provide goods & services to consumers �What is entrepreneurship? �Process of starting, organizing, managing, and assuming responsibility for a business

WHAT IS THE ROLE OF BUSINESS IN SOCIETY? Provide employment Make and distribute products and services

BRAINSTORM � On your handout, complete the How Businesses Help chart

HOW BUSINESSES HELP COMMUNITY INDIVIDUALS

A BUSINESS IMPACTS A COMMUNITY… Provides jobs Buys goods & services from other businesses More employees – they need housing, transportation, food and entertainment Employees pay taxes to support community Other businesses may start

CHECKPOINT……. . �What impact does a business have on society?

BUSINESS ACTIVITIES Generate ideas Raise capital ($) Employ & train workers Buy goods & services Market goods & services Maintain business records

TYPES OF BUSINESSES Producers Intermediaries Service Businesses

PRODUCERS � Create products and services �Extractor – takes resources from nature � Pump oil � Mine coal � Cut timber �Farmers � Grow crops, livestock �Manufacturers � Convert supplies from other businesses into products

INTERMEDIARIES � Businesses involved in selling goods & services of producers to consumers & other businesses � Retailers � Wholesalers

SERVICE BUSINESSES � Perform activities consumed by customers � Dentists, Doctors � Lawyers � Painters � Movers � Hair stylists �FASTEST growing part of economy

CHECKPOINT……. . � How does a manufacturer differ from an extractor?

WHY DO BUSINESSES FAIL? Economic Low profits, low sales Financial Expenses, debts Disaster and Fraud Hurricanes, floods, theft

Neglect Business conflicts, family problems, poor work habits Strategy Overexpanded, customers not paying Experience Poor planning, inexperience