BUSINESS IN OUR ECONOMY Chapter 5 1/11/2019 BUSINESS IN OUR ECONOMY Unit 3, Part 1 GOALS Distinguish the four basic kinds of businesses. Recognize seven kinds of activities performed by businesses. Understand how jobs are created in our economy.

FOUR KINDS OF BUSINESSES Chapter 5 1/11/2019 FOUR KINDS OF BUSINESSES Extractors Manufacturers Marketers Service businesses More detail for each on following slides….

Extractors Grow products or take raw material from nature. Ex. Coal miners, farmers

Manufacturers Take raw materials from the extractors and turn them into something the consumer can use. Ex. Goodyear Tires

Marketers Move goods from the manufacturer to the consumer – transporting and selling products Identify, develop and test new products

Service Business Does things for you instead of making or marketing a product Hair salon, computer consultant Fastest growing form of business

Chapter 5 1/11/2019 BUSINESS ACTIVITIES Generating ideas – thinking up new/improved products Raising capital – start-up money, borrowing to redesign a plant, new office space Buying goods and services – to resell or for company usage Using human resources – attracting employees and developing human resources

BUSINESS ACTIVITIES (cont.) Marketing goods and services – providing the kinds of goods and services that consumers want. Producing goods and services – Keeping records – is the business making or losing money Providing info for management decisions Supplying data for government reports