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Section 1.1 Introduction to Business
Copyright Goodheart-Willcox Co., Inc.
Goodheart-Willcox Publisher
Figure 1-2 Each of the four functions of business
work together to create customer satisfaction and
business success.
Success
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word for a category of activities. The functions of
business are production, finance, marketing, and
management, as shown in Figure 1-2.
• Production is any activity related to making
a product. There are many activities
included in the production function, such
as farming, mining, construction, and
manufacturing.
• Finance includes all business activities that
involve money. These activities include
receiving money from customers, paying
money to suppliers, and paying wages to
employees.
• Marketing consists of all activities that
identify, anticipate, and satisfy customer
demand while making a profit. Marketing
activities focus on customers.
• Management is the process of controlling
and making decisions about a business. It
includes all of the activities required to plan,
coordinate, and monitor a business, as well
as hiring and training employees.
In order for a business to be successful, all the
functions must work together.
Check Your Understanding
1. What is the difference between the
consumer market and the business market?
2. List the five types of utility provided by
business.
3. What is the main reason a business
operates?
4. What are three economic benefits generated
by businesses in an economy?
5. List the four functions of business.
Build Your Vocabulary
As you progress through this course, develop a
personal glossary of key terms. This will help you
build your vocabulary and prepare you for a career.
Write a definition for each of the following terms and
add it to your personal glossary.
business
product
good
service
customer
consumer
need
want
utility
market
profit
wages
standard of living
Section
1.1
Review