Functions of Business

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Unit 1

• Lesson 2
• Functions of Business

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• Although we come into contact with business
  regularly, we often do not think about what goes
  on behind the scenes. There are many, many
  things to consider, as well as, tasks and
  decisions to make!
• FOR EXAMPLE
• Competition and the prices that others.
• How to promote their business.
• Obtain financing in order to buy the equipment
• Employee and management tasks.
• Wages

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The Categories

• Five (5) categories
• Production
• Marketing
• Finance
• Human resources
• Management

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1. Production

• One basic function of any business is producing
  goods and services.
• Production is the process of converting a
  businesss resources into goods and services.
• Using money, machinery and tools, labor, raw
  materials and other things to make a finished
  good or provide a service.
• What goes into makingdonuts?
• Mmmmm! Donuts!!!!!

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The Factors of Production

• A closer look at the production process reveals
  that it involves a number of factors, or
  elements.
• Land
• Capital
• Labour
• Information
• Entrepreneurship

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The Factors of Production

• Land
• Often referred to as natural resources.
• Includes soil, land, minerals, trees, natural
  resources.
• Capital
• Money, machinery, tools, equipment.
• Labour
• People! Physical and mental labour.

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The Factors of Production

• Information
• Using computers/technology, to track information
  about their operations, customers, and
  competitors.
• Managing information is especially important for
  the companies plants and offices around the
  world.
• Entrepreneurship
• activity of people who bring together all the
  factors of production to start a business!
• having the skills and determination to start and
  operate a business and to accept the calculated
  risks involved.

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2. Marketing

• Marketing
• all the business activities used to
• plan, price, promote, and distribute goods or
  services to satisfy consumer needs and wants
• Any activity required to get the finished product
  into the hands of the consumer.
• Includes advertising, packaging, pricing,
  delivery, selling, displaying etc..

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3. Finance

• Keep accurate records of the money coming in
  (Revenues) and going out (Expenses).
• Money owed (accounts receivable) and money owing
  (accounts payable)
• Profits and losses, loans, margins, budgeting,
  payroll, taxes and financial statements

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4. Human resources

• the owners, managers, and employees!
• determining the requirements of each type of job
  in the company
• recruiting and interviewing new employees
• selecting the right person for the job
• training and developing employees
• assessing their performance
• deciding on employee wages and benefits
• Employees can MAKE or BREAK a business!!

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5. Management

• The leadership of a business!!
• Takes care of the planning, organizing, and
  controlling of all business activities.
• Communication, decision-making, goal setting,
  organization, as well as, many other skills and
  characteristics.