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Purpose and Functions
of Business
What do businesses do?
Businesses fulfill the needs
and wants of consumers by
selling goods, services or
both to consumers...
Goods = tangible items
(e.g. Clothes, Cars, Computers, etc)
Services = intangible items
(e.g. hairdresser, dry cleaner,
ba...
Needs
vs.
Needs = Must have to Survive
(e.g. Food, Water, Shelter, etc)
Wants = Desired goods and services
(e.g. iPad, Diamonds, Cut...
Motivation…
to start a business
Profit Motive
The desire to make money; see
the opportunity to make money in
the marketplace.
Profit = revenue - expense
B...
Opportunity to:
meet wants and needs of consumers,

and/or
increase competition in the marketplace.
Functions of Business
Accounting:
Records and reports financial
activity and transactions
Examples
•Paying bills
•Collecting money from customer...
Management:
Organization : assigns roles and
responsibilities of group and individuals.
Control : makes sure goals are met...
Marketing
Satisfies the needs and wants of consumers
through exchange
Based on four “P’s”
Product
Price (establishing the ...
Information Technology
Uses technology to share knowledge, facts,
and data to others (co-workers, customers,
and suppliers...
Operations
Involves behind the scenes paperwork
required to complete all transactions.
Found in both the service and the
m...
Human Resources
Manages “people” relations within the company
Helps workers develop the skills and knowledge
needed to be ...
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Purpose and functions of business

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Transcript of "Purpose and functions of business"

  1. 1. Purpose and Functions of Business
  2. 2. What do businesses do? Businesses fulfill the needs and wants of consumers by selling goods, services or both to consumers.
  3. 3. Goods = tangible items (e.g. Clothes, Cars, Computers, etc) Services = intangible items (e.g. hairdresser, dry cleaner, babysitting, etc)
  4. 4. Needs vs.
  5. 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. 6. Motivation… to start a business
  7. 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. 8. Opportunity to: meet wants and needs of consumers, and/or increase competition in the marketplace.
  9. 9. Functions of Business
  10. 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. 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. 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. 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. 14. Operations Involves behind the scenes paperwork required to complete all transactions. Found in both the service and the manufacturing sector.
  15. 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
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