What is a Business? Give it a shot….

Business The production and/or sale of goods or services to satisfy the needs, wants and demands of consumers with the purpose of making a profit.

For Profit An organization that produces or sells goods or services to meet needs, wants and demands of customers with the purpose of making a profit. Profit means ………

For Profit Profit: income left after all costs and expenses have been paid Revenue: money earned from the sale of goods or services Expenses: expenditures involved in running a business (ie. Wages, utility bills) Similarly costs are money spent for materials.

Thus… REVENUE - EXPENSES = PROFIT (OR LOSS) Solvency: Having the ability to pay your debts and meet financial obligations SOLVENT????

Non-Profit An charitable organization that does not seek profit as its primary motive, but instead raises funds for a specific goal.

Not-for-Profit Organization An organization (often a charity) that doess not seek to make a profit from the operations of a business. Exists to meet the needs of its members and may distribute “profit” back to members Ex. Credit Union Co-Operative: an independent association of persons who come together to meet their economic, social and cultural needs and goals. (A jointly owned business)