Introduction to Business Unit II: Business Ownership and Environments

Producers Processors Manufacturers Intermediaries Service Businesses

 A business that gathers raw products in their natural state ◦ Raw goods = materials gathered in their original state from resources such as land or water  Includes industries such as ◦ Agriculture ◦ Mining ◦ Fishing ◦ Forestry

 Change raw materials into more finished products  Processed goods are made from raw goods that may require further processing  Examples ◦ Paper mills ◦ Oil refineries ◦ Smelting plants

 Businesses that make finished products out of processed goods  Turn raw or processed goods into finished goods that require no further processing and are ready for the market  Examples ◦ Bakery ◦ Automotive plant ◦ Furniture factory

 Businesses that move goods from one business to another (buys goods, stores them, and then resells them) ◦ Wholesaler: buys goods from manufacturers in large quantities and resells them in small quantities to customers, usually other companies ◦ Retailer: purchases goods from a wholesaler and resells them to the consumer, or the final buyer of goods

 Provide services rather than goods ◦ Service: product of a skill or an activity ◦ These businesses  Meet needs  Provide conveniences  Give access to information  Service businesses are rapidly increasing in numbers

Different Functions Functional Interdependence

Finance: art of money management Accounting: maintaining and checking records, handling bills, and preparing financial reports Process of achieving company goals through planning, organizing, leading, controlling, and evaluating the effective use of resources Process of planning, pricing, promoting, selling, and distributing products Getting consumers to buy the good or service Production: creating, expanding, manufacturing, or improving goods and services Procurement: buying and reselling goods that have been produced Production and Procurement Marketing Finance and Accounting Management