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
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