1.01 Purpose of Business
Things that are necessary for survival
What are needs?
A system of recording and reporting financial activity and transactions
What is accounting?
Owned by one person
What is a sole-proprietorship?
Focus on providing a service instead of making a profit
What is a non-profit business?
What are examples of partnerships?
Not necessary for our survival but add pleasure and comfort to our lives
What are wants?
The process of satisfying the needs and wants of consumers through exchange.
Based on four “P’s”—Product, Price, Placement and Promotion
What is Marketing?
Owned by two or more people
What is a partnership?
What is a profit-making business?
Hiring, firing, and training of employees and the paperwork involved
What is human resources?
Someone who uses goods or services
What is a consumer?
(or customer)
The use of technology to share knowledge, facts, and data to others such as co-workers, customers, and suppliers.
What is information technology?
Owned by many people (stockholders), but treated by law as one person
What is a corporation?
Barber shop, dry cleaners, car repair shop, lawn care
What are examples of service businesses?
Usually benefit an organization, cause, need, or a public purpose
What is a non-profit organization?
Businesses fulfill the needs and wants of the consumer by selling these
What are goods, services, or both?
Manages the personnel relations within a company; helps develop the skills and knowledge necessary to be successful while on the job.
What is human resources?
Contractual agreement between the parent company and the business operator to sell a company's products or services in a specific geographic area
What is a franchise?
What are examples of non-profit organizations?
The parent company for a franchise
What is a franchisor?
A reason or motivation to start a business - the desire to make money
What is profit motive?
This function of business is considered the “back office” and involves all the behind the scenes paperwork that must be finished in order for the transactions to be completed.
What is operations?
A corporation that has its facilities and other assets in at least one country other than its home country
What is a multinational corporation?
Walmart
Car dealerships
Hair salon
Appliance store
What are examples of combination businesses?
A disadvantage for sole-proprietorships & partnerships
What is unlimited liability?