1 / 9

Chapter 6

Chapter 6 . Types & Functions of Businesses-6.2. Types of Businesses . Producers gather raw goods in original state from natural resources. Agriculture, mining, fishing, forestry 2. Processors change raw materials into more finished products. Require further processing—

ryu
Download Presentation

Chapter 6

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chapter 6 Types & Functions of Businesses-6.2

  2. Types of Businesses • Producers gather raw goods in original state from natural resources. Agriculture, mining, fishing, forestry 2. Processorschange raw materials into more finished products. Require further processing— -Sugar cane into sugar -Crude oil into gasoline -Iron ore into steel

  3. Types of Businesses-cont’d • 3. Intermediaries & Wholesalers • a. Intermediary moves goods from one business to another. • b. Buys, stores, then resells goods. • Wholesalers distribute goods. • Also known as distributors. • Clothing wholesaler—buys thousands of jackets from several manufacturers, then • Divides them into smaller quantities & sells them to retailers.

  4. Retailers & Service Businesses • 4. Retailer purchases from wholesaler & sells to consumers. • Examples: service stations, auto dealers • Service businesses employ ¾ of workforce • Perform tasks—medical clinics, law firms • Provide conveniences—taxi companies, cleaning services

  5. Functions of Businesses • 1. Production & procurement • Production is the process of creating, expanding, manufacturing or improving goods/services. • Procurement is the buying & reselling of goods that have already been produced. • Wholesalers buy goods from producers to resell to retailers & other wholesalers.

  6. Functions – cont’d • 2. Marketing – process of planning, pricing, promoting, selling & distributing ideas, goods & services. • Involves getting consumer to buy product or service. • Marketers make decisions based on market research of trends & consumer habits.

  7. Functions – cont’d • 3. Management is process of achieving company goals by: • planning, • organizing, • leading, • controlling & evaluating effective use of resources.

  8. 4. Finance/Accounting • Finance – manage money & analyze financial statements to make future decisions. • Accounting – maintaining & checking records, handling bills & preparing financial reports for a business.

  9. The functional areas of business depend on each other. • Companies benefit when all functional areas work together.

More Related