Chapter 1 Basic Economic Concepts Section 1 2
Chapter 1 Basic Economic Concepts Section 1. 2 Business Activities
Read to Learn Explain how profit and competition motivate businesses. List the activities businesses undertake when developing products and services. Explain how business impacts you and how you impact business.
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.
Key Concepts How to Define Business Activities Business and You
Key Terms business any commercial activity that seeks profit by providing good and services in exchange for money profit the money left over after a business has paid the cost of providing its goods and services
Key Terms competition the contest between businesses to win customers market research the act of gathering and analyzing information about the wants, needs, and preferences of consumers in a certain market
Key Terms consumer a person who uses goods or services
How to Define Business Your wants and needs are usually satisfied by a business any commercial activity that seeks profit by providing goods and services to others in exchange for money
How to Define Businesses seek to make a profit the money left over after a business has paid the cost of providing its goods and services
How to Define Businesses provide consumers with necessities, such as food, clothing, housing, medical care, and transportation. Businesses also provide goods and services that make life easier and better.
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.
The Significance of 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
The Significance of Competition Offer quality products Offer outstanding service Offer competitive prices
Graphic Organizer 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
Business Activities 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
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.
Business and You Businesses make many decisions that impact you, the consumer a person who uses goods and services
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.
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.
1. Define business Business is any activity involving the exchange of money for goods and services.
2. 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
3. Describe why it is important to understand how business impacts you and how you impact business. Answer pending.
End of Chapter 1 Basic Economic Concepts Section 1. 2 Business Activities
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