1. Purpose and Functions
of Business

2. What do businesses do?
Businesses fulfill the needs
and wants of consumers by
selling goods, services or
both to consumers.

3. Goods = tangible items
(e.g. Clothes, Cars, Computers, etc)
Services = intangible items
(e.g. hairdresser, dry cleaner,
babysitting, etc)

4. Needs
vs.

5. Needs = Must have to Survive
(e.g. Food, Water, Shelter, etc)
Wants = Desired goods and services
(e.g. iPad, Diamonds, Cute
Fluffy Puppies, etc)

6. Motivation…
to start a business

7. 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.

8. Opportunity to:
meet wants and needs of consumers,
and/or
increase competition in the marketplace.

9. Functions of Business

10. 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

11. Management:
Organization : assigns roles and
responsibilities of group and individuals.
Control : makes sure goals are met
Planning: develops plans and forecasts
for the future

12. Marketing
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)

13. Information Technology
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

14. Operations
Involves behind the scenes paperwork
required to complete all transactions.
Found in both the service and the
manufacturing sector.

15. Human Resources
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