This document defines key business concepts like wants, needs, goods, services and resources. It explains that business activities involve organizing people and equipment to produce and market products and services. The two main motivations for business are profit and competition. Consumers purchase goods and services while wage earners affect business productivity and quality. The decision making process involves identifying problems, listing solutions, evaluating options, making a choice and evaluating the outcome.

1. Chapter 1 – Wants & Needs

2. What is *Business?
 Any activity that seeks profit by providing goods or
services to others (who want or need them).

3. *Want
 Things you wish you could have
 public wants – shared by many
 Satisfied by the Government
 private wants – individual/family wants

4. *Needs
 Necessary wants

5. *Goods
 Can be physically weighed or measured
 can see or touch them

6. *Services
 Tasks people or machines perform
 Cannot see or touch

7. *Resource
 Anything people can use to make or obtain what they
need or want

8. Limited Resources
 Most people have unlimited wants
 The more money you make, the more you want
 Very few people have enough money to satisfy their
wants
 Resources limit the number of wants people can
satisfy

9. Business Activities
 Organize people & equipment
 Manage resources
 Produce products/services
 Market
 Distribute

10. 2 Factors that motivate business
 Profit
 Competition

11. *Profit
 Amount of money left over after a business has paid
for the cost of producing its goods and services

12. *Competition
 Contest between businesses to win customers

13. Your relationship with business
 Consumer
 Wage earner

14. *Consumer
 A person who uses goods or services
 Purchases

15. As a consumer you need to
 Understand the world you live and work in
 What happens in business and government will affect
your life
 Do your research

16. How Business Decisions Affect
Consumers
 Businesses offer goods/services based on what people
want/need

17. How Wage Earners Affect
Business
 You affect productivity
 You affect quality

18. Decision-Making Process
 Step 1 – identify the problem
 Step 2 – list possible solutions
 Step 3 – evaluate the solutions (+/-)
 Step 4 – make a decision
 Step 5 – evaluate your decision

19. Importance of the Decision
Making Process
 Helps you make better choices