Business Organization Chapter 5 Section 1
Business in the U.S. Economy Describe the changing status of U.S. employment Discuss the role of business in the U.S. economy Describe three major types of business
The Changing U.S. Job Market The average age of U.S. workers in 2020 will be over 50 Groups that will grow through higher employment rates Asians Hispanics African-Americans
Currently, white non-Hispanic workers make up 70% of the labor force. Will drop to 66% by 2014 Most striking trends in employment has been the participation of women 1960’s = 35% Doubled by 2000 By 2014 it is expected that women will make up nearly one half(47%) of the work force
Pressures on Employees Economic stress has led to downsizing of the number of people employed by many companies Cost-cutting procedures Employees take on new task Employees work more hours Full time jobs reduced to part time Wage rates decreased
Business and the Economy Increased use of contingent workers One who has no explicit or implicit contract for long- term employment Business and the Economy In 2002, all businesses worldwide produced more than $40 trillion of goods and services. U.S. businesses were responsible for almost 29% of that production
Roles of Businesses Provide employment Profits earned are used to compensate owners and investors Pay taxes(fed., state, and local) Make and distribute products and services
Business Activities Generate Ideas Raising Capital Employing & Training Personnel Buying Goods & Services Marketing Goods & Services Maintaining Business Records
Categories of Businesses Producers Create the products and services used by individuals and other businesses Extractor – takes resources from nature for direct consumption or for use in developing other products Farmers – cultivate land and use other natural resources to grow crops and raise livestock for consumption Manufacturers – get supplies from other producers and convert them into products
Intermediaries – businesses involved in selling the goods and services of producers to consumers and other businesses. Retailers & Wholesalers Service Businesses – carries out activities that are consumed by its consumers Does not offer a product Fastest growing part of the economy