Objective: Understand the purpose of business

1. Purpose of Business Objective: Understand the purpose of business

2. What is a business • A business is a legal entity that is set-up or designed to make goods, sell goods, or provide a service.

3. Purpose of Business • Businesses fulfill the needs and wants of consumers. • Consumers use goods and services • Customers purchase goods and services • Businesses sell or provide goods, services or both to consumers • Goods—clothing, cars, computers, CDs, *public services* • Services—hairdresser, dry cleaner, lawn care, babysitting, *public services*

4. Motivation to start a business • Profit motive—desire to make money; see the opportunity to make money in the marketplace. • Opportunity to meet wants and needs of consumers • Opportunity to increase competition in the marketplace • Businesses are investment opportunities for individuals—future income

5. Assignment • Go to the class website and open the vocabulary document. Follow the instructions to complete the vocabulary for this section.