Download Types of Businesses

BUSINESS IN THE US
ECONOMY
Impact on Community
Business Pays
Wages to
Workers
More $$$ in the Community
Business Buy
Goods & Services
From Other
Businesses
More Employees
Hired
Housing
Automobiles
Food
Brings More Businesses to Give MORE $$$$ to the
Community
Entertainment
Business Activities
Generating Ideas – Businesses begins
with a new idea
 Raising Capital – Businesses needs
financial resources to operate
 Employing & Training Personnel –
Businesses needs human resources

Business Activities Cont.
Buying Goods & Services – Businesses needs
goods to sell as well as for their own
operations
 Marketing Goods & Services – Businesses must
get customers
 Maintaining Business Records – Businesses
must have some type of recordkeeping system

Types of Businesses - Producers

Producers – Create the products and services
by individuals and other businesses
 Extractor
– Business that takes resources from
nature for direct consumption or for use in
developing other products (Ex. Pump oil, mine coal)
 Farmers – cultivate land and use other natural
resources to grow crops and raise livestock for
consumption
Types of Businesses - Manufacturers

Gets supplies from other
producers and converts them into
products
Sell
products to consumers AND
other businesses
Types of Businesses - Intermediaries

Businesses involved in selling
goods and services of producers
to consumers and other businesses
Retailers
Wholesales
Types of Businesses - Service

Carries out activities that are
consumed by it customers
No
products
Fastest growing part of the economy
60% of all US is in service-producing
businesses