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Business Basics
Better Business1st EditionPoatsy Martin
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c h a p
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Slide presentation prepared by Pam JansonStark State College of Technology
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All rights reserved. No part of this publication may bereproduced, stored in a retrieval system, or transmitted, inany form or by any means, electronic, mechanical,photocopying, recording, or otherwise, without the priorwritten permission of the publisher. Printed in the UnitedStates of America.
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Learning Objectives1. What are profits , and how do businesses and non-
profit organizations compare?2. What is the difference between a good and a service ,
and what are the factors of production ?
3. How do competition , the social environment ,globalization , and technological growth challenge andprovide opportunities to business owners?
4. What are four types of businesses?5. How do sole proprietorships , partnerships ,
corporations , and limited liability companies (LLCs)differ from one another as forms of business?
6. How do life skills translate to the business environment?
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Basic Business Definitions Businesses: sell goods
and services to earnprofit
Profit Nonprofit
organizations Good Service
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Benefits of Businesses The proprietor benefits from earned profits. Society benefits from goods and services
provided. Communities benefit from the employment
opportunities. Businesses contribute to the quality of life
by creating higher standards of living forsociety.
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The Factors of Production Labor Natural resources
Capital Entrepreneurs Technology
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How Does CompetitionInfluence Business?
Competition forces companies too Improve their product offerings.o Lower their prices.o Promote their brands.o Focus on customer satisfaction.o Seek workers with interpersonal,
communication, and decision-makingskills.
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How Does the SocialEnvironment Affect Businesses? An aging population Increasing diversity The Green
Movemento Environmental
concernso New product
opportunities
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Globalization Multinational enterprises Offshoring Benefits to the U.S. economy
o Lower prices for goodso Increased competition stimulates innovation
Risks to the U.S. economyo U.S. jobs lost to overseas workerso Increased competition
o Fluctuation in the dollar valueo Security and patent protection concernso Unstable political climates in foreign countries
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Technological Changes Technology is expensive and time-consuming. Benefits include lower costs and improved
productivity, security, and communications.
Telecommuting, teleconferencing and othertools help human relations and globalization.
The Internet aids company operations.o E-commerce (B2B and B2C) streamline sales.o Businesses must provide online security and
privacy.
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Types of Businesses:Local and Regional
Managing money is the mostsignificant special challenge of thesebusinesseso Poor financial
planningo Undercapitalization
o Taxes andinsurance costs
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Types of Businesses:National
A national business has several outletsthroughout the country
Special challengeso Financeso Laws that vary from state to stateo Supply chain management
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Types of Businesses:Multinational
Special challengeso Different countries lawso Cultural differenceso Economic differences
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Types of Business Ownership
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The Players inBusiness Ownership
Corporate stakeholders includeemployees, shareholders, investors,suppliers, and society at large
Sole proprietorships usually havefewer stakeholders than largecorporations
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Taking Business Personally Are you a sole proprietorship or a partnership? How do you receive funding? What are your expenses? How does the social environment affect your
life? How does globalization affect your life? How do you keep up with new technology? What sort of e-commerce do you use?
How do you keep your business secure What types of goals do you have?
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Chapter Summary1. What are profits , and how do businesses and non-
profit organizations compare?2. What is the difference between a good and a service ,
and what are the factors of production ?
3. How do competition , the social environment ,globalization , and technological growth challenge andprovide opportunities to business owners?
4. What are four types of businesses?5. How do sole proprietorships , partnerships ,
corporations , and limited liability companies (LLCs)differ from one another as forms of business?
6. How do life skills translate to the business environment?
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