Click here to advance to the next slide.

1. Click here to advance to the next slide.

3. Read to Learn • Differentiate the six types of businesses. • Describe the five functions of business. • Discuss how the five functions of business relate to each other.

4. The Main Idea There are many different types of businesses. The five functions of business are involved in every one.

5. Key Concepts • Types of Businesses • Functions of Business • How the Functions of Business Are Interdependent

6. Key Term producer a business that gathers raw goods a business that changes raw materials into more finished products processor

7. Key Term a business that makes finished products out of processed goods manufacturer a business that moves goods from one business to another intermediary

8. Key Term wholesaler a business that distributes goods a business that purchases goods from a wholesaler and sells them to consumers, the final buyer of the goods retailer

9. Key Term the process of creating, expanding, manufacturing, or improving goods and services production the buying and reselling of goods that have already been produced procurement

10. Key Term the process of planning, pricing, promoting, selling, and distributing ideas, goods, and services marketing the process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources management

11. Key Term the business or art of money management finance maintaining and checking records, handling bills, and preparing financial reports for a business accounting

12. Graphic Organizer Types of Businesses Functions ofBusinesses • Producers • Processors • Manufactures • Intermediaries and Wholesalers • Retailers and Service Businesses • Production and Procurement • Marketing • Management • Finance and Accounting

13. Producers A producer may be found in industries such as agriculture, mining, fishing, or forestry. producer a business that gathers raw goods

14. Processor A processor may, for example, turn crude oil into gasoline. processor a business that changes raw materials into more finished products

15. Manufacturers Cars, CDs, and computers are examples of goods that are made by a manufacturer. manufacturer a business that makes finished products out of processed goods

16. Intermediaries and Wholesalers An intermediary buys goods, stores them, and then resells them. intermediary a business that moves goods from one business to another

17. Intermediaries and Wholesalers A wholesaler of clothing may buy thousands of jackets from several manufacturers, divide the large quantities into smaller ones, and sell them to retailers. wholesaler a business that moves good from one business to another

18. Retailers and Service Businesses A record store is an example of a retailer. retailer a business that purchases goods from a wholesaler and sells them to consumers, the final buyers of the goods

19. Retailers and Service Businesses Service businesses perform tasks rather than provide goods. Service businesses employ about three-quarters of the workforce and are rapidly increasing in numbers.

20. Functions of Business The five main functions of business are: • Production and procurement • Marketing • Management • Finance • Accounting

21. Production and Procurement Production and procurement are closely related functions of business. production the process of creating, expanding, manufacturing, or improving goods and services procurement the buying and reselling of goods and services that have already been produced

22. Marketing Marketing involves getting consumers to buy a product or service. marketing the process of planning, pricing, promoting, selling, and distributing ideas, goods, and services

23. To Advertise or Not Advertising is used to influence consumers to buy one product or service over another.

24. Management Management is an important function of business. management the process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources

25. Finance and Accounting Finance requires analyzing financial statements to make future decisions. finance the business or art of money management

26. Finance and Accounting Accounting requires attention to detail and accuracy. accounting maintaining and checking records, handling bills, and preparing financial reports for a business

27. How the Functions of Business Are Interdependent The functional areas of a business depend on each other. Sometimes, the functional areas of a business conflict with each other.

28. Graphic Organizer Example of How Functional Areas Depend on Each Other A furniture maker’s sales are decreasing. The accounting and finance department notice decreasing sales. If the furniture is too highly priced, more efficient procedures will have to be implemented. A new marketing plan is created. The accounting and finance department will monitor the effects of new marketing efforts.

29. Graphic Organizer Example of How Functional Areas Conflict with Each Other Management wants to increase sales by 20 percent within three years. The production department suggests improving quality. The marketing department requests more funds for projects. Accounting says there is not enough money for either plan. The final plan involves ideas from all the functions of business.

30. What is the difference between a producer and a processor? A producer gathers or creates raw products. A processor changes raw products into more finished products.

31. Identify the five functions of business. production and procurement, marketing, management, finance, and accounting

32. Give an example of how the accounting and finance functions can affect a business’s marketing and production processes. If the financials show little profits, new marketing plans may be developed and new production procedures may be implemented.

33. End of