1. Characteristics of Business

2. Nature of Business Profit=Earned income-Costs
3 major activities of business:
Production-making the product
Marketing-how goods/services are exchanged between producers and consumers
Finance-money matters
Supply vs. demand
2 major types of business:
Industrial-produce goods used by other businesses
Commercial-Sell to consumers
Changing nature of business-must react quickly to the changing nature of society, be innovative

3. Impact of Global Competition
100s of years, we led the way
Americans purchase American goods
Last 30 years, others have become industrialized
Americans purchase American and foreign
More efficiency and effectiveness in production
Better quality products
Better prices
Less jobs in America
Specialization of worker talent-experts
Technology and innovation (better quality, faster)
Reorganization (drop unprofitable products, increase technology, empowering workers, redesign workflow)

4. Business Growth and Prosperity
Gross domestic product (GPD) total market value of all goods/services PRODUCED in a yr. (overall well being of nation)
Illegal transactions are not recorded (underground economy)-Increases in poor economic times
Review the GDP chart for on pg. 14
What was the GDP for the US in 2010?
$ T
Well being of individuals-household ownership

5. Entrepreneurship Popularity of small businesses
Individuals have a strong desire
easy to do
Growth of small businesses-lg. began as sm.
Growth of Franchise business
initial fee and 3-8% of weekly sales
pay for rights to sell
5-10% fail (much lower than non-franchised)
12% of all bus. are franchised, grown steadily
Risks of Ownership
Well managed=adequate income (usually)
Risk-possibility of failurecompetition, change is price or style, changes in economic conditions See chart pg. 20
Thousands fail annually
Obligations of Ownership
Duty to all stakeholders-if go under and owe money-suffer a loss
Customers, workers, mgmt, competitors, investors, public

6. Intrapreneurship
Provided to keep creative employees on your staff instead of competition.
Employee Stock Ownership Plan (ESOP)
Permits ee’s to own the co. in which they work –buy shares

7. Assignment Book pg. 23 Definitions Review Facts (1-15)
Discuss Ideas (1-12)