2. Activity:
In your notebook draw a picture of a Business
What does it look like?

3. •Explain the nature of business
•Describe the general types of businesses
•Identify 2 ways a nation measures its
economic growth & prosperity
•Describe the benefits of business ownership
to the nation and to individuals

4. • An organization that produces or distributes a
good or service for profit
Goods= tangible (physical)
Services= intangible

5. • Industrial
– produce goods used by other businesses to make
things
– Ex. Coal mining, farming, crude oil
• Commercial
– Wholesalers & retailers (marketing)
– Finance (banks, investment companies)
– Services ( fitness centers, hotels, medical)

6. What type of business is…
• Lawn-mowing- Service
• Paper mill- Industrial
• Dentist- Service
• Textile (clothing)- Industrial
• Sports Authority- Retail
• McDonald’s- Service
• Dell Computers- Industrial

7. Is a word often used to describe
ALL businesses within a CATEGORY
doing similar work

9. • Business is (constantly changing)
• An is something entirely new
1. Affect the kinds of products/services offered
(example technical athletic clothing)
2. Affect business operations
(Internet and telecommuting)
• What other innovations have benefited you?

10. Challenges When Competing Internationally
• Global Innovation
• Competition
Domestic Goods = made by US firms
Foreign Goods = made by firms in other countries

11. • Making the right decisions about what
products or services to offer customers & how
to produce and deliver them
Efficiency
• Producing quickly, at the lowest cost, while
maintaining quality

12. • Gather customer info
• Study buying habits
• Test new products
• Add new features
• Product guarantees & follow-Up
• TQM (Total Quality Management)
– commitment to excellence

13. Efficiency
• Measured by OUTPUT
– Quantity produced within a given time
Productivity:
• Producing the largest quantity in the least
amount of time
• Achieved through:
1. Specialization of effort
2. Modern technology
3. Reorganization of work (downsizing/empowerment)

14. • Gross Domestic Product
• Measure of nation’s economic wealth
• = total market value of all goods & services
produced in a country in 1 year
• US about $14.58 Trillion
• Not included: Underground transactions not
reported to Federal Gov’t

15. 0
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16. Standard of Living is ↑er in productive nations
Investments in Human Capital

17. Franchise:
• Legal agreement
• Small group of investors purchase right to sell a
company’s product/service under company’s name
and trademark
Activity: “FRANCHISE ABC’S”

18. Entrepreneur:
• Someone who starts, manages, & owns a business
Small Business
• Companies operated by 1 or a few individuals
• Make up largest # of businesses in US
• ½ of all employed people work for small businesses

19. What are the risks involved?
Competition from other businesses
Price changes
Style changes
Competition from new products
Changes in economic conditions

20. Agree or Disagree?
“Anyone who starts a business has a
responsibility to the entire community”
A business that fails creates an economic loss
that is shared by others (customers,
employees, suppliers, competitors)

21. • TO CUSTOMERS – best at ↓est price
• TO EMPLOYEES – respected, rights enforced
• TO MANAGEMENT – recognition for abilities
• TO COMPETITORS – fairness
• TO INVESTORS – kept informed, interests considered
• TO PUBLIC – promote general welfare, obey laws

22. What is Intrapreneurship???
An employee who is given funds and freedom to
create a special unit or department within a
company to develop a new product, process,
or service