1. Unit 1 - Business Fundamentals
Introduction to Business Terminology
Unit 1 - Business Fundamentals

2. A business has two purposes:
Business: An organization that produces or sells goods or services to satisfy the needs, wants and demands of consumers for the purpose of making a profit.
A business has two purposes:
1. To make MONEY
2. To provide goods and services to satisfy consumer wants and needs
“I feel that luck is preparation meeting opportunity”
~ Oprah Winfrey

3. Profit or Non-profit? For Profit Organizations:
produces or sell goods and services to satisfy the needs, wants, and demands of consumers for the purpose of a making MONEY

4. For-profit Business
By supplying goods and services, a business can make a profit
Profit is the income left after all costs and expenses are paid.
Expenses are the payments involved in running a business and the assets that get “used up” operating it.
Cost is the money required to produce or provide the goods and services.
Revenue – Expenses = Profit (or Loss)

5. Goods and Services
Goods: items of monetary value that have been produced
Television, Shoes
Services: tasks performed by businesses for consumers
Lawn Mowing, Spa
Businesses can sell both goods and services.
Goods are TANGIBLE
can touch them
Services are INTANGIBLE
can’t touch them

6. Goods or Services? Businesses that sell goods
Businesses that provide services
Businesses that do both

7. Non-Profit Organizations

8. WHAT IS NOT-FOR-PROFIT?
Not-for-profit Organization: uses any surplus funds to improve the services offered to its members.
These businesses do not distribute profits to members.

10. One Red Paperclip