Objective 1 Vocabulary

Objective 1
O Profit
O Money that remains after a business has
paid for the expenses of running the
O Income > Expenses
Purposes of Business
O Profit Motive
O A person's incentive to work to gain
something for himself or herself (that is to
make money).
Purposes of Business
O Competition
O Contest between businesses to win
customers ‘ business and loyalty
Purposes of Business
O Needs
O Items necessary for existence, such as
clothing, food, shelter
Purposes of Business
O Wants
O Items that would be nice to have but are not
Purposes of Business
O Consumer
O A person who uses good or services.
O Many times that consumer is also the
customer (purchaser)
Purposes of Business
O Goods
O Items businesses sell that can be physically
weighted or measured, such as iPODS and
Purposes of Business
O Services
O Tasks that businesses perform or provide for
customers, such as hair cuts and car washes
Types of Businesses
O Sole Proprietorship
O A business owned by only one person.
Types of Businesses
O Partnership
O A business owned by two or more people
Types of Businesses
O Franchise
O A contract between a parent company and a
franchisee to use the name and sell the
goods or services of the parent company,
such as KFC.
Types of Businesses
O Non-profit organization
O A business whose goal is to provide a service
rather than to make a profit, such as the
American Red Corss.
Types of Businesses
O Corporation
O A business considered separate from the
owners of the business by law. The owners
are the stockholders.
Types of Businesses
O Multinational corporation
O A company that does business and has
business facilities in many countries, such as
Functions of a Business
O Accounting
O The process of recording and reporting the
financial data for a business
Functions of a Business
O Management
O The process of leading and directing all or
part of an organization.
Functions of a Business
O Marketing
O The process of creating, promoting, and
presenting a product to the consumers.
Functions of a Business
O Information Technology
O The process of developing, installing and
implementing computer information systems
and applications. IT includes the support and
maintenance of computer hardware and
Functions of a Business
O Operations
O The activities involved in the day-to-day
running of a business for the purpose of
producing value for the stakeholders.
Functions of a Business
O Human Resources
O The activities that deal with the hiring, firing,
training and other personnel (employee)