Business Foundations Lesson 5-1: The Basics…

Learning Goals Discuss the role of business in the U.S. economy. Describe the three major types of businesses

Impact of Business Most businesses operate to generate profit, but they also have an important impact on the economy Wages to workers Purchasing goods and services from other businesses Creation of new jobs Attracting other businesses

Business Activities While there are multiple sizes, locations, and types of businesses, they all perform 6 basic functions: Generating Ideas: the business starts with an idea, continually improves on ideas, and develops new ideas Raising Capital: businesses need money to operate; funds can come from loans, operations, and re- investment of profits

Business Activities (continued) Employing and Training Personnel: businesses need human resources, they must be recruited, hired, trained, and compensated Buying Goods and services: businesses need goods and services to perform their operations. These range from raw materials to finished products.

Business Activities (continued) Marketing: businesses must work to provide the goods and services that customers want, make customers aware, and encourage sales Maintaining Records: records allow businesses to track performance and make decisions.

Producers Producers - businesses that create products and services for individuals and other businesses Producers include extractors, farmers, manufacturers, etc. All business activities start with producers

Intermediaries Intermediaries - businesses involved in selling goods and services to consumers and other businesses Goods and services are made by producers, then distributed by intermediaries Common intermediaries include wholesalers and retailers Sometimes referred to as “the middleman”

Service Businesses Service Business- a business that carries out activities for its customers instead of selling them products Examples include dentists, lawyers, maids, painters, and trainers Businesses and consumers use services often Service businesses are among the fastest growing parts of the economy

Learning Goals I can discuss the role of business in the U.S. economy. I can describe the three major types of businesses

Business Foundations Lesson 5-1: The Basics…