WEEK 3
LESSON 1 CHP 6.2
Which types of businesses might
be involved in the manufacture of
an automobile?
Learning Objectives chapter 6.2
After completing this chapter, you’ll be
able to:
1. Differentiate the 6 types of business.
2. Describe the 5 functions of business
Why It’s Important
You need to understand business
ownerships and operations before
starting a business.
Producers
- business that gathers raw products in
their natural state
Raw goods are materials gathered in
their original state from natural resources
Examples: agriculture, mining, fishing
and forestry
Processors
Processors change raw materials into
more finished products
Processed goods are made from raw
goods and may require further processing
Examples: Wheat converted to flour,
crude oil converted to gasoline.
Manufacturers
Manufacturers are businesses that make
finished products out of processed goods
STEEL
GLASS
PLASTIC
The finished products need no further
processing and are ready for market.
First the iron ore is mined (producer). Second,
the ore is processed by a steel company
(processor).
Third, steel is used at an automobile plant
(manufacturer).