purpose and functions of business
TRANSCRIPT
![Page 1: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/1.jpg)
Purpose and Functions
of Business
![Page 2: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/2.jpg)
What do businesses do?
Businesses fulfill the needs and wants of consumers by selling goods, services or both to consumers.
![Page 3: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/3.jpg)
Goods = tangible items (e.g. Clothes, Cars, Computers, etc)
Services = intangible items (e.g. hairdresser, dry cleaner, babysitting, etc)
![Page 4: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/4.jpg)
Needs
vs.
![Page 5: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/5.jpg)
Needs = Must have to Survive (e.g. Food, Water, Shelter, etc)
Wants = Desired goods and services (e.g. iPad, Diamonds, Cute Fluffy Puppies, etc)
![Page 6: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/6.jpg)
Motivation…
to start a business
![Page 7: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/7.jpg)
Profit Motive
The desire to make money; see the opportunity to make money in the marketplace.
Profit = revenue - expense
Businesses are also investment opportunities for individuals for future income.
![Page 8: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/8.jpg)
increase competition in the marketplace.
meet wants and needs of consumers, Opportunity to:
and/or
![Page 9: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/9.jpg)
Functions of Business
![Page 10: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/10.jpg)
Accounting:
Records and reports financial activity and transactions
Examples •Paying bills •Collecting money from customers •Paying taxes •Preparing employee payroll checks •Reconciling bank statements •Investing cash
![Page 11: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/11.jpg)
Management:
Organization : assigns roles and responsibilities of group and individuals. Control : makes sure goals are met Planning: develops plans and forecasts for the future
![Page 12: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/12.jpg)
Satisfies the needs and wants of consumers through exchange Based on four “P’s”
Product Price (establishing the price of the product) Placement (placing the product in attractive and convenient sales locations) Promotion (advertising)
Marketing
![Page 13: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/13.jpg)
Uses technology to share knowledge, facts, and data to others (co-workers, customers, and suppliers) Examples
Maintains e-mail accounts Maintains software applications Maintains processing systems Maintains hardware for all technology used
Information Technology
![Page 14: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/14.jpg)
Involves behind the scenes paperwork required to complete all transactions. Found in both the service and the manufacturing sector.
Operations
![Page 15: Purpose and functions of business](https://reader035.vdocuments.net/reader035/viewer/2022081400/5549a246b4c9050c708b4fbb/html5/thumbnails/15.jpg)
Manages “people” relations within the company Helps workers develop the skills and knowledge needed to be successful on the job Responsible for hiring and firing of employees Selects employee benefits and enrolls all employees in the benefits (insurance, retirement, etc.) Helps employees pursue educational opportunities
Human Resources