CHAPTER 5 Business In Our Economy

Goals ■DISTINGUISH the four basic kinds of businesses. ■RECOGNIZE seven kids of activities performed by businesses. ■UNDERSTAND how jobs are created in our economy.

Four Kinds of Businessess ■Extractors – a business that grow products or take raw materials from nature ■Manufacturer – takes the extractor’s products or raw materials and changes them into a form that consumers can use. ■Marketers – a business that is involved with moving goods from producers to consumers ■Service Business – a business firm that does things for you instead of making or marketing products

Extractors Texas Oil DrillingCoal Mining, West, VA

Manufacturing Oil Refinery – Philadelphia, PAAmerican Apparel Clothing – Los Angeles, CA

Marketers

Service Business

Seven Business Activities 1.Generating Ideas 2.Raising Capital 3.Buying Goods and Services 4.Using Human Resources 5.Marketing Goods and Services 6.Producing Goods and Services 7.Keeping Records

The Impact of New Businesses on a Community ■Companies pay workers wages ■This is new income that comes into a community. ■Workers spend money on goods and services ■The businesses that earn this money spend it again for other goods and services –Electricity –Office furniture –Supplies –Equipment –Tools