Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Unit 1:
Intro to Business
2015
1
Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Part 1: Economic Basics
What is a Business?

Businesses come in many shapes and sizes, such as __________________,
__________________, __________________, and/or __________________.

They are classified by their size, structure, and the role they play in the community.
Profit or Non-profit
For-Profit Business

A for-profit business __________________ or __________________ goods and services
to satisfy the needs, wants, and demands of consumers for the purpose of making a
_________.
Activity: What do you want?
Basic Human Need
Specific product that you A different product that
Want to satisfy your
another student wants to
need
satisfy his or her need
Food
Drink
Clothing
Shelter
Love
Safety
Fun
Socialization
Other?
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Non-profit and Not-for-profit Organizations

A non-profit and/or not-for-profit organization operates strictly to
__________________ people in the community.
For-profit Business

By supplying goods and services, a business can make a profit.
o Profit is the __________________ after all the costs and expenses are paid.
 Revenue – Expenses = Profit (or Loss)
o Expenses are the __________________ involved in running a business and the
__________________ that get “__________________” operating it.
o Cost is the _________ required to _________ or provide the goods and services.

When a business makes a profit, it can
o __________________ money for expansion.
o Provide __________________ goods and services.
o Give the owner(s) __________________ on personal needs or wants.

The business is considered __________________ when debts are paid and financial
obligations are met.
Non-profit Organizations

The primary motive of a non-profit organization is to __________________ funds for a
specific goal.

Only __________________ and __________________ organizations are called nonprofit and are allowed to raise such funds.

These organizations operate to __________________ __________________ and their
__________________.
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Not-for-profit Organizations

A not-for-profit organization uses any surplus funds to __________________ the
services offered to its members.

However, they do not distribute profits to members.

A __________________, unlike a not-for-profit organization, consists of an
__________________ association of persons who join together to meet economic,
social, and cultural needs and goals.
Activity: Canadian Co-operative Association (CCA) project profile
With a partner, go to http://www.coopscanada.coop/. Select ‘Projects’ from the menu at the
top of the page. Choose one of the projects that the CCA and their partners are currently
undertaking in either Africa, Asia, the Americas, the Caribbean, or Europe. Using the outline
below, prepare a profile on the project to share with the class.
Project:
Country:
Description:
Total Budget:
Term:
Financial Support:
Large or Small

A small or medium-sized business (SMB) can be classified by the following
characteristics:
o Employs fewer than __________________ people
o Estimated to be over __________________ Canada
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
o Provides jobs for more than __________________ percent of the Canadian
workforce
Forms of Business Ownership

Informal descriptions of business ownership include:
o ____________________________________
o ____________________________________
o ____________________________________
o ____________________________________
o ____________________________________
Activity: Find Local examples of Business Ownerships
Working with a partner, search the internet or www.yellowpages.com for local examples of
each form of business ownership.
Channels of Distribution

A business can be classified according to how it delivers __________________ or
__________________ to the customer. Some of these categories are
o __________________ (“bricks and mortar”)
o __________________
o __________________
o __________________
o __________________
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Role in the Community

A business performs different functions in its community.
Jobs

A business can be classified by the types of jobs that it provides.
Activity: Local businesses & channels of distribution
Using the examples of local businesses listed in the previous activity. Select a few business, and
categorize them according to how are they distribute their goods and services.
The Role of the Consumer

__________________ are the businesses that make goods or provide services that
consumers need or want.

__________________ are the people who purchase goods and services from producers.

A __________________ or location is where producers and consumers come together
to buy and sell their goods and services.

Businesses use __________________ __________________ plus their own research to
decide what quantities of goods and services they will provide to consumers.

Some key questions that businesses might ask about themselves are
o When do they want these goods and services?
o Where do they want them?
o How much goods or services do they want?
o What price will they pay for these goods and services?
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G

Unit 1: Business Basics
Consumers greatly influence businesses in regards to what they produce and how they
deliver it.
Consumer Influence on Products

In the past, businesses controlled what, when, and the __________________ of
products and services available to consumers.

With increased __________________ and the appearance of more producers,
consumers ultimately buy from businesses that meet their personal needs and wants.
When Products Become Obsolete

Over time, products or services can become __________________ because people no
longer want or need them.
Consumer Influence on Price
 __________________ are in control when they have _____________________________.
They can increase prices in response to increased costs or to increase their profits.
 __________________ have control when they have power. They demonstrate this by
“voting with their feet” to look elsewhere for products and services.
Consumer Influence on Service
 ____________________________________ gives individuals the control to buy goods
and services at the price they want and at the location they like.
 This power influences the __________________, __________________, and
__________________ levels that businesses offer consumers.
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Starting a Business
Characteristics of Entrepreneurs

Entrepreneurs are people who are __________________ and __________________.

Entrepreneurs are acutely aware of opportunities in the marketplace and take
advantage of these in their businesses. Important entrepreneurial characteristics
include the following:
o ____________________________________
o ____________________________________
o ____________________________________
o ____________________________________
Consumer Needs and Wants

Entrepreneurs often start businesses to satisfy consumer __________________.

Basic survival needs for individuals are food, clothing, and shelter.
o However, entrepreneurs can also provide consumers with new products or
services that are not considered a need but a __________________—something
that adds __________________ or __________________ to their lives.
Attracting Consumer Interest

Entrepreneurs need to identify their _____________, and determine how to
__________________ their customers and keep them.

Businesses also plan what goods and services to offer and how to distribute and market
them by knowing how consumers will answer the following questions:
o Do I really __________________ it?
o __________________ should I buy it?
o How much __________________ is there to choose from?
o How much can I __________________ to spend?
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
o Why would I want to buy __________________? Are there
__________________ or __________________?
o Where __________________ could I get it? Could I buy it __________________
or get it as a __________________?
Attracting Consumer Interest

Businesses compete for consumers.

Here are a few strategies that businesses use to help attract buyers to try a product or
service.
o ____________________________________
o ____________________________________
o ____________________________________
Making Good Business Decisions

Entrepreneurs face many decisions on a daily basis.

Even deciding how much __________________ or stock (i.e., the quantity of goods and
materials to keep on hand) must be considered carefully because of the financial
resources available.
Decision-Making Process
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Economic Resources

Economic resources, also known as ____________________________________, are the
means through which goods and services are made available to consumers.

Most products require a combination of:
o ____________________________________
o ____________________________________
o ____________________________________

Businesses are __________________, which means they rely on the goods and services
from a variety of businesses to satisfy consumer needs and wants.
Economic Systems

__________________ are a way of dealing with the selection, production, distribution,
and consumption of goods and services.

Government and business work together to foster activity and __________________ in
the marketplace.

Economic systems have to answer three key questions:
1. What goods and services should be produced within the system?
2. For whom should these goods and services be produced?
3. How should these goods and services be produced?
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Demand, Supply, and Price
Law of Demand

Demand is the quantity of goods or services that __________________ are willing and
able to __________________ at a particular price.

Law of demand and its relationship to prices and consumers is defined as the following:
o When __________________  decrease consumers buy more and
__________________  increases.
o When __________________  increase consumers buy less and
__________________ goes  decreases.

Several conditions that create demand are:
o ____________________________________
o ____________________________________
o ____________________________________
o ____________________________________
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Activity: Factors that affect Demand
Group #1: Find examples that illustrate how changes in consumer income can increase or decrease
demand.
Group #2: Find examples that illustrate the effects of changing consumer tastes on demand.
Group #3: Find examples that illustrate the effects of changing expectations on demand.
Group #4: Find examples that illustrate the effects of changing population on demand.
12
Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Law of Supply

Supply is the quantity of a good or service that __________________ are willing and
able to __________________ within a range of prices that people would be willing to
pay.

Increasing the __________________ supplied as prices __________________ is called
the law of supply.

Law of Supply and its relation to prices and consumers is defined as the following:
o When __________________  decrease producers produce
__________________ and supply  decreases.
o When __________________  increase producers produce
__________________ and supply  increases.

Several conditions that affect supply are
o The __________________ of producing or providing a good or service
o The __________________ consumers are willing to pay for it
Relating Price to Supply and Demand

__________________ is determined by _______ and __________ as well as the cost of
producing or providing the good or service.
13
Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Activity: Factors that affect Supply
Group #1: Find examples that illustrate how changes in the number of producers can increase or
decrease supply.
Group #2: Find examples that illustrate the effects of changing expectations on supply.
Group #3: Find examples that illustrate the effects of new technology on supply.
Group #4: Find examples that illustrate the effects of changing production costs on supply.
14
Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Part 2: Types of Businesses
Forms of Business Ownership

Forms of business ownership and types of businesses describe how they are organized
and run.

The four main forms of business ownership are listed below.
o Sole Proprietorship
o Partnerships
o Corporations
o Co-operatives

A franchise is a combination, or hybrid, of the four forms of ownership.
Sole Proprietorships

A sole proprietorship is a business owned by __________________ person who is
known as the __________________.

The proprietor has a wide range of responsibilities including arranging displays and
__________________ to customers to name a few.

Funds to run the business usually come from the owner’s __________________,
__________________, __________________, or from a _________________________.

If the business prospers, the owner receives all of the profits.

If the business does poorly, the owner is responsible for its losses.
o This is called ____________________________________.
Partnerships

A partnership refers to a type of business in which __________________ individuals
share the responsibilities of owning and operating it.

The terms of the partnership are recorded in the _______________________________.

The most common form of partnership is a ____________________________________.
15
Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G

Unit 1: Business Basics
When two individuals form a ____________________________________, the partners
are only responsible for the funds they invested in the business to help start it up.
o This is called ____________________________________.
Corporations

A corporation is a business granted __________________with rights, priviledges and
liabilities that are distinct from those of the people who work for the business.

Corporations can be __________________ such as a ____-person business or
__________________ such as a __________________ that conducts business in several
different countries.

Small portions of corporate ownership that are owned publicly are called
__________________ or shares.

Individuals who own shares of a corporation are called __________________ and
become owners of the business.

Shareholders have ____________________________________.

A board of directors runs a corporation that is owned by shareholders.

A ____________________________________ corporation that makes a profit may pay
out __________________ to shareholders.
Types of Corporations

____________________________________

____________________________________

____________________________________

____________________________________
Co-operatives

A co-operative is owned by the __________________ or members who buy the
products or use the services that the business offers.

This type of business is motivated by __________________ and not profit.
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G

Unit 1: Business Basics
Adaptations of this business model include consumer, retail, and worker co-operatives.
Franchises

The __________________licenses the rights to its name, operating procedure, designs,
and business expertise to another business called the __________________.

A ____________________________________ can provide the franchisee with:
o A ready-made, fully operational business
o Brand recognition that is appealing to consumers

Requirements before a franchise is awarded may include
o Paying the ____________________________________
o Agreeing to pay a monthly percentage fee, as well as any national or local
__________________ costs
o __________________ all supplies centrally from the franchiser
o Participating in franchiser ____________________________________
Going into Business
8 Questions to Ask Before Going into Business
1. Why Start Your Own Business?
o People who desire to be the boss and take responsibility for making decisions
often decide to run their own business.
o They believe it is the best way for them to achieve financial independence, to
allow them to use their skills and knowledge, and to be creative.
2. What Different Types of Businesses Are There?
o service business
o retail business
o not-for-profit organization
o manufacturing business
3. What Are Your Skills and Interests?
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
o Different ideas, skills, and knowledge can be used to start a new business. Two
popular ones are __________________or __________________ businesses.
i. Should Your Business Be Home-based
a. Technology has changed how SOHO (“small office, home-based”) businesses
operate. Computers, scanners, and Internet access are a few of the tools that
home office businesses use today to be successful.
ii. Should Your Business be Web-based?
a. E-Commerce (“electronic commerce”) is a marketplace where consumers
and sellers meet without face-to-face contact.
b. In the “real world,” products are tangible. Products and services are sold to
us by personal contact with the sellers. Online we do not interact with
products or come face-to-face with the sellers.
c. Our experience with services is limited or non-existent.
d. Consumers are often reluctant to purchase online due to unreliable or
dishonest businesses and privacy issues.
4. Where Can You Find Information About a Business?
a. Businesses require accurate and current information to make good decisions.
Important resources to find information include
 Libraries
 Trade associations
 The Internet
 Existing businesses
 Federal and provincial governments (i.e., Strategis and Statistics Canada
are two helpful government sites or agencies.)
5. What Are the Start-up Costs?
a. Capital resources to run a business are available through ___________________
referred to as borrowing money to run the business. Using your savings or
investor savings called ____________________________________ is an
alternative way to fund a business.
6. What Level of Risk Can You Expect?
a. Even with research and planning, business can be risky.
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Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
b. Risks or threats beyond and within the owner’s control can put the business in
financial difficulty.
7. What Steps Are Involved in Running This Business?
a. Some types of businesses, such as manufacturing, are complex.
b. A complex business requires many people with different skills to successfully
start and operate it.
8. What Resources Will You Need?
a. __________________ is determining the resources the business requires and
how much financing it needs to obtain them.
b. __________________ is the amount of money gained from the sale of products
or services.
International Business Structures

A number of different business structures allow businesses to expand into international
markets.
Joint Ventures

A ____________________________________ can match the skills and expertise of two
different individuals or businesses to generate more benefits for both parties.
International Franchises

An __________________ is a way to achieve an international presence by buying the
rights to a chain operation from the franchiser.
Strategic Alliances

__________________ occur when two or more businesses agree to commit particular
__________________ to achieve a common set of objectives.

Alliance partners remain ___________ and entirely independent of each other.
19
Mr. Pfahl 2015
Futures in Business 15G / Start Your Own Business 25G
Unit 1: Business Basics
Mergers

__________________ happen when two or more companies join together:
o One of the businesses usually wants to purchase a controlling interest in the
other company, or both businesses have combined interests.
Offshoring

__________________ reallocates some of a company’s operations to another
__________________.

Usually this happens to take advantage of lower __________________, to be closer to
large and emerging buyer markets, and to have __________________ to skilled
workforces.
Multinational Corporations

A business enterprise that conducts business in another __________________ or
several different countries is a ____________________________________.

A multinational corporation offers different __________________ to the country it
invests in.

Some positive benefits include new __________________ and __________________ for
people.

Negative consequences could be __________________ and more financial
__________________ for citizens of that country.
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Mr. Pfahl 2015