Businesses exist to fulfill consumer needs and wants by selling goods and services for a profit. They perform key functions like accounting to record financial transactions, management to coordinate resources and meet goals, and marketing to satisfy consumers through products, pricing, and placement.

1. 1.01 Purpose and Functions of Business Objective 1.01 Understand the purpose and the functions of business

2. Purpose of Business Business fulfill the needs and wants of consumers Consumers use goods and services Customers purchase goods and services Business sell goods, services or both to consumers Goods-clothing, cars, computers, CDs Services-hairdresser, dry cleaner, lawn care, babysitting

3. Motivation to start a Business Profit Motive-desire to make money; see the opportunity to make money in the marketplace Opportunity to wants and needs of consumers Opportunity to increase competition in the marketplace Business are investments opportunities for individuals-future income

4. Functions of Business Accounting-recording and reporting financial activity and transactions Examples Paying Bills Collecting money from consumers Paying taxes preparing employee payroll checks Reconciling bank statements Investing cash Purchasing inventory

5. Functions of Business MANAGEMENT Make sure that the entire organization meets its goals and obligations Effectively works with people in the organization Uses available resources to accomplish the organizations' goals

6. Functions of Business MARKETING satisfies the needs and wants of consumers through exchange Based on four "P"s Product Price(establishing the price of the product) Placement