What is a Business?. Review: Goods and Services These are things that satisfy people’s wants and...
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![Page 1: What is a Business?. Review: Goods and Services These are things that satisfy people’s wants and needs… Goods: Cars, computers, phones, candy, etc.](https://reader035.fdocuments.in/reader035/viewer/2022070415/5697bfa91a28abf838c99ae2/html5/thumbnails/1.jpg)
BUSINESS FUNDAMENTALS
What is a Business?
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Review: Goods and Services These are things that satisfy people’s wants
and needs…
Goods: Cars, computers, phones, candy, etc. Services: Doctor, Accountant, Librarian
(provide a service), etc.
Look at your list of wants/needs and see whether you listed goods, services, or both.
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What is a Business?
An organization that produces or sells goods or services to satisfy the needs and wants of consumers to make a profit.
Garage sale or Telus Mobility?
Businesses come in all sizes and shapes – some are local, some are regional, while others are national, and some are global
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Local Business
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Regional Business
http://www.workbc.ca/Statistics/Regional-Profiles/Pages/Regional-Profiles.aspx
Be sure to fill this information into your notes!
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National Business
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Global Business
As of 2015, over 1 billion people are using Microsoft products
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For-Profit or Non-Profit? Profit – an organization that produces or sells
goods or services to satisfy the needs, wants, and demands of consumers for the purposes of making a profit ($$$)
Non-Profit – an organization that does not seek profit as its primary goal, but raises funds for people for a specific goal
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Examples of For-Profit Businesses
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For-Profit Business Goal: To make a profit by supplying goods and
services to meet consumer demands Profit = The income left over once all costs and
expenses are paid Revenue = Income generated from the sale of
goods/services Expenses – includes employee wages,
supplies/materials needed for the business (paper, printer ink, etc.)
Costs – the amount of money needed at each stage of production (buying raw materials, manufacturing those materials into a product, selling the product, etc.)
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Simply remember…
Revenue – Expenses = Profit (or Loss)
Example: If a store sells gym equipment for $500, and costs & expenses add up to $350, the profit on the sale is $150
$500 - $350 = $150Revenue Expenses Profit (or Loss)
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Now it’s your turn…
If a sporting good store sells a pair of shoes for $130, and the costs and expenses for the shoes total $50, what is the profit on the sale?
Remember:Revenue – Expenses = Profit (or Loss)
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Profit?
Revenue – Expenses = Profit (or Loss)
$130 - $50 = $80 Revenue Expenses Profit
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Importance of Profit
Obviously, a business needs profit in order to be successful
Profit = more $$$ going back into the business for growth and expansion
Profit = more $$$ to buy better goods or improved services
Profit = more $$$ in the owner’s pocket
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No Profit? Sometimes, businesses will not make a
profit. If a business makes no profit, but the
owner is still able to pay debts (rent/lease for space, paying for raw materials, employee wages), the business is considered solvent.
Solvency means being able to pay debt and meet financial obligations.
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Non-Profit Organizations
A non-profit organization is one that does not seek profit as its primary motive.
Seeks to raise money for a specific goal Example: Charities are non-profit
organizations
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Now it’s your turn… In MS Word, copy and paste 6 different
pictures to represent the following:For-profit businessNon-profit businessLocal BusinessRegional BusinessNational BusinessGlobal BusinessLabel each picture with the business type!Due Thurs end of class: Print and submit to
Block B basket