A
sevices
skills, talent, labor or expense
goods
5 functional area of business
management, operations, marketing, accounting, finance
Revenues
Money coming in
listing & explaining the relationships of business participants
customers (pays) owner, owners (pay) employees, employees (produce & sell = goods & services) to customers
expenses
money going out
business
any activity that provides goods or services to make profit
5 Functions of management
Planning - preparing
Organizing - putting people & resources together
Staffing - HR - recruiting, selection, training
Directing - leadership
Controlling - meeting established standards
3 relationships between R&E
R>E = Profit
R=E = Break Even
R<E = Loss
Accounting
Measure, summarize, and communicate financial info
Operations
Converting resources into goods or services
Finance
involves planning for obtaining, & managing a companies funds
profit
financial gain
Marketing
identifying customers needs & designing, pricing products
consumers
final user of goods or services
Management
planning, organizing, staffing, directing, & controlling a companies resources to achieve goals