1. What is Business?

2. Business
A business is 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
Business also can be described by its type of ownership, the goods produced or services offered, the types of jobs provided, or the functions it performs in a community

3. Entrepreneurs
People who take calculates risks and start a business to solve a problem or take an advantage of an opportunity are called entrepreneurs
Recognize that unsatisfied needs and wants of consumers is an opportunity for a business opportunity
People need businesses for employment opportunities; businesses need people to shop with the money they make from employment

4. Needs
Needs would be defined as goods or services that are required. This would include the needs for food, clothing, shelter, health care.

5. Wants
Wants are goods or services that are not necessary for survival yet we desire or wish to own or take advantage of them. For example, a people need clothes but may not need designer clothes. People do not need toys, entertainment, or cars. People need food but do not have to have steak or dessert.

6. Wants
An important part of the economics is the distribution of resources or goods so that people's needs are met. This is especially true in times of scarcity when there are not enough resources, goods or services. Many times advertisers try to appeal to consumers in such a way that the consumers feel they need certain goods or services when in fact they only want them.

7. Goods Most goods have a monetary value (dollars and cents)
Value of goods change over time
All goods are tangible, meaning these goods are produce and can be seen and touched

8. Services
Services also have a monetary value because people are willing to pay for them
Example: Round of Golf, Dentist visit
Services are intangible because they do not result in a product you can touch
Services can be free such as the work performed by volunteers from not-for-profit organizations

9. Essential and Luxery Goods and Services
Essential goods (food, clothing, shelter) and essential services (heat, water, and electricity) are needed for survival
Luxury goods (swimming pools, home entertainment centres) and luxury services (limo service, spa visit) are not necessary for survival

10. Maslow’s Hierarchy of Needs

11. Maslow’s Hierarchy of Needs
The basis of Maslow's theory is that human beings are motivated by unsatisfied needs. Certain lower needs must be satisfied before higher needs can be satisfied. As long as we are motivated to satisfy these cravings, we are moving towards growth, toward self-actualization.

12. Maslow’s Hierarchy of Needs
Physiological Needs
Needs required to sustain life, such as:
Air
Water
Food
Sleep

13. Maslow’s Hierarchy of Needs
According to Maslow's theory, if these fundamental needs are not satisfied then one will surely be motivated to satisfy them.
Higher needs such as social needs and esteem are not recognized until one satisfies the needs basic to existence.

14. Maslow’s Hierarchy of Needs
Safety Needs
Once physiological needs are met, one's attention turns to safety and security in order to be free from the threat of physical and emotional harm.
Such needs might be fulfilled by:
Living in a safe area
Medical insurance
Job security
Financial reserves
If a person feels threatened, needs further up the pyramid will not receive attention until that need has been resolved.

15. Maslow’s Hierarchy of Needs
Social Needs
Once a person has met the lower level physiological and safety needs, higher level needs awaken.
The first level of higher level needs are social needs.
Social needs are those related to interaction with others and may include:
Friendship
Belonging to a group
Giving and receiving love

16. Maslow’s Hierarchy of Needs
Esteem Needs
Once a person feels a sense of "belonging", the need to feel important arises.
Esteem needs may be classified as internal or external.
Internal esteem needs are those related to self-esteem such as self respect and achievement.

17. Maslow’s Hierarchy of Needs
Esteem Needs
External esteem needs are those such as social status and recognition.
Some esteem needs are:
Self-respect
Achievement
Attention
Recognition
Reputation

18. Maslow’s Hierarchy of Needs
Esteem Needs Maslow later refined his model to include a level between esteem needs and self-actualization: the need for knowledge and aesthetics

19. Maslow’s Hierarchy of Needs
Self-Actualization Needs
Self-actualization is the summit of Maslow's hierarchy of needs.
It is the quest of reaching one's full potential as a person.
Unlike lower level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow.

20. Maslow’s Hierarchy of Needs
Self-Actualization Needs
Self-actualized people tend to have needs such as:
Truth
Justice
Wisdom
Meaning

21. Maslow’s Hierarchy of Needs
Self-Actualization Needs
Self-actualized persons have frequent occurrences of peak experiences, which are energized moments of profound happiness and harmony.
According to Maslow, only a small percentage of the population reaches the level of self-actualization.

22. Economic Resources Products and services don’t just appear
Goods must be manufactured from basic components; services require skills and effort
Economic resources (factors of production) are the means which goods and services are made available to consumers

23. Economic Resources
Natural resources are those raw materials that come from the earth, water, and air such as oil, fish, and agricultural products
Natural resources are renewable and non-renewable
Human resources (also referred to as labour) are the people who work to create goods and services (farmers, factory workers, teachers, web designers)
Capital resources include money, buildings, equipment, tools, trucks, and factories and usually last for a long period of time and often require a substantial investment on the part of the business.

24. Producers and Consumers
Producers are those that manufacture the product, while those that repair computers provide a service.
Consumers are the people who buy products and services. The more people that can be found to buy products equals greater profits for companies
People can be both producers and consumers of the same product