1. Business Organization
Chapter 5
Section 1

2. Business in the U.S. Economy
Describe the changing status of U.S. employment
Discuss the role of business in the U.S. economy
Describe three major types of business

3. The Changing U.S. Job Market
The average age of U.S. workers in 2020 will be over 50
Groups that will grow through higher employment rates
Asians
Hispanics
African-Americans

4. Currently, white non-Hispanic workers make up 70% of the labor force.
Will drop to 66% by 2014
Most striking trends in employment has been the participation of women
1960’s = 35%
Doubled by 2000
By 2014 it is expected that women will make up nearly one half(47%) of the work force

5. Pressures on Employees
Economic stress has led to downsizing of the number of people employed by many companies
Cost-cutting procedures
Employees take on new task
Employees work more hours
Full time jobs reduced to part time
Wage rates decreased

6. Business and the Economy
Increased use of contingent workers
One who has no explicit or implicit contract for long- term employment
Business and the Economy
In 2002, all businesses worldwide produced more than $40 trillion of goods and services.
U.S. businesses were responsible for almost 29% of that production

7. Roles of Businesses Provide employment
Profits earned are used to compensate owners and investors
Pay taxes(fed., state, and local)
Make and distribute products and services

8. Business Activities Generate Ideas Raising Capital
Employing & Training Personnel
Buying Goods & Services
Marketing Goods & Services
Maintaining Business Records

9. Categories of Businesses
Producers
Create the products and services used by individuals and other businesses
Extractor – takes resources from nature for direct consumption or for use in developing other products
Farmers – cultivate land and use other natural resources to grow crops and raise livestock for consumption
Manufacturers – get supplies from other producers and convert them into products

10. Intermediaries – businesses involved in selling the goods and services of producers to consumers and other businesses.
Retailers & Wholesalers
Service Businesses – carries out activities that are consumed by its consumers
Does not offer a product
Fastest growing part of the economy