Intro to Business - Needs and Wants

1. Chapter 1 – Wants & Needs

2. What is *Business?
 Any activity that seeks profit by providing goods or
services to others (who want or need them).

3. *Want
 Things you wish you could have
 public wants – shared by many
 Satisfied by the Government
 private wants – individual/family wants

4. *Needs
 Necessary wants

5. *Goods
 Can be physically weighed or measured
 can see or touch them

6. *Services
 Tasks people or machines perform
 Cannot see or touch

7. *Resource
 Anything people can use to make or obtain what they
need or want

8. Limited Resources
 Most people have unlimited wants
 The more money you make, the more you want
 Very few people have enough money to satisfy their
wants
 Resources limit the number of wants people can
satisfy

9. Business Activities
 Organize people & equipment
 Manage resources
 Produce products/services
 Market
 Distribute

10. 2 Factors that motivate business
 Profit
 Competition

11. *Profit
 Amount of money left over after a business has paid
for the cost of producing its goods and services

12. *Competition
 Contest between businesses to win customers

13. Your relationship with business
 Consumer
 Wage earner

14. *Consumer
 A person who uses goods or services
 Purchases

15. As a consumer you need to
 Understand the world you live and work in
 What happens in business and government will affect
your life
 Do your research

16. How Business Decisions Affect
Consumers
 Businesses offer goods/services based on what people
want/need

17. How Wage Earners Affect
Business
 You affect productivity
 You affect quality

18. Decision-Making Process
 Step 1 – identify the problem
 Step 2 – list possible solutions
 Step 3 – evaluate the solutions (+/-)
 Step 4 – make a decision
 Step 5 – evaluate your decision

19. Importance of the Decision
Making Process
 Helps you make better choices