This document provides an overview of key business concepts including definitions of a business, for-profit vs non-profit organizations, and different types of businesses. It defines a business as an organization that produces or sells goods or services to satisfy consumer needs and wants for the purpose of making a profit. For-profit businesses aim to generate revenue that exceeds expenses and costs of doing business in order to earn a profit, while non-profits have a social purpose rather than profit motive. The document also distinguishes between goods, which can be seen and touched, and services, which are intangible assistance provided to people or businesses, and describes three main types of businesses: service, retail, and manufacturing.

1. UNIT 1: Business
Fundamentals

2. WHAT IS A BUSINESS?
▪ In groups of 2:
1) Brainstorm a definition for a business;
2) Create a list of at least 20 specific
businesses. (Aim for variety.)

3. PIECES OF THE ‘BUSINESS’
PUZZLE
Accounting
Marketing/
Sales
Information &
Communication
Technology
Human
Resources
Production
Ethics & Social
Responsibility
Skills
Knowledge

4. WHAT IS A BUSINESS?
▪ An important classification is if the
business if FOR-PROFIT or NON-PROFIT
(also called Not-for-Profit).

5. A FOR-PROFIT
BUSINESS:
▪ An organization that produces or
sells goods or services (G & S) to
satisfy the needs, wants and
demands of consumers for the
purpose of making a profit ($).

6. Of your 20 businesses, do they
provide goods or services, or both?
Goods
▪ items that have monetary value and
can be seen and touched. (TANGIBLE)
▪ Services
▪ assistance provided, usually in return
for payment, to satisfy needs/wants of
people or business. (INTANGIBLE)
GOODS AND SERVICES:

7. FOR-PROFIT
BUSINESSES:
PROFIT = income that is left after all
costs and expenses are paid.
EXPENSES = cost that are incurred in
running a business.
(e.g. wages ex, office supplies ex,
telephone, ex)
COSTS = the amount of money
required for each stage of production.
(e.g. raw materials)

8. FOR EXAMPLE:
▪ A hotdog stand owner sells $1,000 worth of food in one
day.
▪ The cost of the food is $400, which includes buns,
hotdogs, toppings and drinks.
▪ The vendor is renting the stand for $100 per day and he
is paying the city $25 per day for the permit.
▪ The vendor pays himself $100 in wages for the day.
▪ What is the profit of the Business? $375/day

9. NON-PROFIT
ORGANIZATION:
▪ Its purpose is something other than profit
▪ It may still be interested in raising funds - but it
will be for a specific goal.
For example:
▪ Canadian Breast Cancer Foundation raises funds through events like the
CIBC run for the cure,
▪ Heart and Stroke Foundation raises funds through the Heart and Stroke
Lottery

10. TYPES OF
BUSINESSES:
▪ 1. Service business: Generates profit by
doing something for other businesses or
consumers.
▪ For example: Cable companies, airlines,
theatres and movers.

11. TYPES OF
BUSINESSES:
▪ 2. Retail business: Generates profits by
selling things. Usually buys items from a
manufacturer (producer of item) and then
sells them the consumer.
▪ For example: Department stores, electronics stores, grocery stores.

12. TYPES OF
BUSINESSES:
▪ 3. Manufacturing business: Generates
profit by producing products from raw
materials or component parts (semi-
processed) and then selling them to
distributors/retailers.
▪ Manufacturers can be retailers also if they sell directly to the end
consumer
▪ For example: Appliance and car manufacturers.

13. Needs
◦ Items that is necessary for survival.
Wants
◦ Items that are not necessary for
survival but add pleasure or comfort
to life.
NEEDS VS. WANTS
In pairs, brainstorm one list of needs
and one list of wants

14. Questions:
1. Create a list of (what you believe to be)
essential (necessary) goods for all
member of our society.
2. Create a list of essential (necessary)
services for all members of our society.
3. Do “essential” goods and services differ by
geographic region? Explain and give
examples.