1. BUSINESS IN OUR ECONOMY
Chapter 5
1/11/2019
BUSINESS IN OUR ECONOMY
Unit 3, Part 1
GOALS
Distinguish the four basic kinds of businesses.
Recognize seven kinds of activities performed by businesses.
Understand how jobs are created in our economy.

2. FOUR KINDS OF BUSINESSES
Chapter 5
1/11/2019
FOUR KINDS OF BUSINESSES
Extractors
Manufacturers
Marketers
Service businesses
More detail for each on following slides….

3. Extractors Grow products or take raw material from nature.
Ex. Coal miners, farmers

4. Manufacturers
Take raw materials from the extractors and turn them into something the consumer can use.
Ex. Goodyear Tires

5. Marketers
Move goods from the manufacturer to the consumer – transporting and selling products
Identify, develop and test new products

6. Service Business
Does things for you instead of making or marketing a product
Hair salon, computer consultant
Fastest growing form of business

7. Chapter 5
1/11/2019
BUSINESS ACTIVITIES
Generating ideas – thinking up new/improved products
Raising capital – start-up money, borrowing to redesign a plant, new office space
Buying goods and services – to resell or for company usage
Using human resources – attracting employees and developing human resources

8. BUSINESS ACTIVITIES (cont.)
Marketing goods and services – providing the kinds of goods and services that consumers want.
Producing goods and services –
Keeping records – is the business making or losing money
Providing info for management decisions
Supplying data for government reports