Business in the U.S. Economy

NOTES

U.S. Businesses & The Economy

Public and privately owned companies contribute to the U.S. $16 TRILLION GDP

Size of U.S. Businesses

Most businesses in the U.S. are small businesses!

Roles of U.S. Businesses

Make & distribute goods and services

Employ millions of people

Pay taxes

Impact on a Community

New businesses can add jobs and increase the demand for local products and services

Business Activities

All businesses in the United States, no matter how BIG or small, will perform these 6 activities Busines

s Activitie

s

Generate Ideas

Raise Capital

Employ & Train

Employees

Buy Goods & Services

Market Goods & Services

Maintain Business Records

Types of Businesses• Businesses that offer something intangible and can assist retailers,

intermediaries, and producers.• Web Designers• Travel Agents• Painters

Service Business

es• Businesses involved with the direct sale of products to

consumers and other business. Focus on distribution and selling.• Wholesalers• Retail StoresRetailers

• Businesses involved in the processing of goods/services from producers to other businesses.• Transportation Companies• Storages Centers• Sales Offices / Agents• Data Processing Centers

Intermediaries

• Create products and services used by individuals and other businesses.• Extractors• Farmers• Manufacturers

Producers

ASSIGNMENT

Select a product that involves all of the types of businesses in its production and marketing. Create a illustration (hand draw, Word, or PowerPoint) that shows each business and its role in the production and sale of the product. Title your illustration and label the various businesses involved.

Example

Ford Truck

Producers• Steel, Tire, Glass,

Plastic, and Auto Manufacturers

Intermediaries• Sales Agents for

producers and dealers that negotiate price and quantities or parts and equipment

Retailers• Dealerships and

Individuals who sale the product to consumers