6
Copyright Goodheart-Willcox Co., Inc.
E
Q
ssential
uestion
What does it mean to
be in business?
Objectives
After completing this section, you will be able to:
• Define business and its benefits.
• Describe the four functions of business.
Key Terms
business
product
good
service
customer
consumer
need
want
utility
market
profit
wages
standard of living
Impact of Business
What career goals have you set for your
future? No matter what your passions or career
aspirations, your life will be touched by business.
Business is all around you and affects everything
you do.
As a student, studying business can help you
in many ways. Learning the basic principles of
business will help you become a more valuable
employee by understanding how the economy
operates. Employers seek workers who are
knowledgeable about how business operates and
contributes to our society.
Not everyone wants to work for an employer.
Maybe owning your own business is in your
career plans. Think about the businesses in your
community. How many are independently owned
and operated? Understanding business concepts
will help you learn the processes necessary to
create a business and become your own boss.
Learning about business can also help you
be a more informed citizen. Having business
knowledge can help you be a better consumer
and investor in your personal life. You can gain
personal satisfaction by understanding the
business world. The possibilities are endless.
What is business? A business is a specific
organization, such as Ford Motor Company or
a local pet walking service. However, business
is the term for all the activities involved in
developing and exchanging products. A product
is anything that can be bought or sold. Products
are commonly known as goods and services. A
good is a physical item that can be touched. A
service is an action or task that is performed,
usually for a fee. Products may be bought or sold
to individuals, businesses, and governments.
To be successful, a business must be
organized and focused on the customer. A
customer is an individual or group who buys
products. The customer of a service business
is often called a client. A customer can be an
individual, a business, a nonprofit organization,
or a governmental agency. Customers who
purchase goods and services for their own use
are consumers. The consumer market is comprised
of customers who buy products for their own
use. The business market consists of customers
who buy products for use in a business.
Section
1.1
Introduction to Business