Business Activities

5.1Describe types of business

activities

Unit 5

Business Activities

What type of career are you planning to pursue in the future?

■No matter where you wind up working, that business (and every other business)
must accomplish certain things:

1.

Hiring people

2.

Making/Providing products

3.

Keeping track of expenses

■These primary activities keep businesses in operation

■Without them, no one would have a job!

5.4 Explain marketing and its

importance in a global economy

Have you ever searched for a special
brand of sunglasses or a custom T-shirt
company?

■ If so, you have been impacted by

marketing.

■ Marketing is all around you.
■ You experience it everywhere you go.

■ Advertisements
■ Items for sale
■ People promoting ideas

Multiple Choice

How is marketing different than advertising?

• It is the same thing.

• Advertising is one component of marketing.

• Marketing is one component of advertising.

• Advertising is for products, marketing is for services.

Multiple Choice

Marketing is the process of promoting products to satisfy the wants and needs of customers.

• True

• False

▪ Research

▪ Product development

▪ Pricing

▪ Promotion

▪ Placement

MK:001 Explain marketing and its importance in a global economy

Marketing Activities

Multiple Choice

Product involves either the product or service the business is selling to satisfy customer needs and wants

• True

• False

Multiple Choice

What are the 4Ps of the marketing mix?

• product - prices - point - promotion

• product - price - place - promotion

• products - prices - places – promotional

• places - product - promotion - price

Which “P” of the marketing mix do you think is most important? Why?

MK:001 Explain marketing and its importance in a global economy

Marketing Activities

Three Elements of the Marketing Concept

▪ Customer orientation–

business decisions
based on customer
viewpoints

▪ Company commitment–

company works to satisfy
needs of customers

▪ Company goals–

marketers strive to
achieve company goals.

MK:001 Explain marketing and its importance in a global economy

Think of a company that does
well in marketing.. what is that
company and how do they do
so well?

Benefits of Marketing

▪ Grows the economy

▪ Provides goods and services

▪ Creates jobs

▪ Improves quality of living

▪ Increases international trade

▪ Creates consumer choices

MK:001 Explain marketing and its importance in a global economy

Give an example of
how market
competition has
benefited you
personally.

Multiple Choice

Identify, Satisfy, Retain Customers

• Factors that Influence Decisions

• Market Research

• Customer Profile Dimension

• Roles of Marketing

Multiple Choice

A television commercial stresses the benefits of buying a new protein bar.

• Marketing Information Management

• Selling

• Promotion

• Product Management

Multiple Choice

The process of establishing and communicating to customers the value of cost of goods and services.

• Financing

• Selling

• Promotion

• Pricing

Multiple Choice

Name that function: Ending amount charged with .99 to give the illusion of savings while still maintaining profit margins.

• Marketing information management

• Financing

• Pricing

• Promotion

• Product service management

Multiple Choice

How and where a product will be distributed describes this P of marketing.

• Price

• Place

• Promotion 

• Product

Multiple Choice

THE 4 P's - product, place, promotion, price

• price

• selling

• target market

• Marketing mix

Multiple Choice

This P reflects what customers are willing and able to pay.

• Place

• Price

• Promotion

• Product

Multiple Choice

Which P represents how you reach the audience by advertising online or on billboards?

• Product

• Place

• Price

• Promotion

Multiple Choice

what to make, how to package it, what brand name to use and what image to project

• price

• product

• target market

• Marketing mix

5.4 Case Study

Ricardo works in marketing for a soft drink company. His new
outdoor advertising plan involves placing billboards geared
toward children near schools and playgrounds. Ricardo’s
goal is to increase consumption of the soft drink by children
ages 5-11. He knows that the drink is not necessarily healthy
for young children, but he knows that they can increase sales
if they target this market segment. Is Ricardo’s marketing
strategy ethical? Why or why not? (Ethical Principles
Involved: Integrity, Accountability, Transparency, Rule of Law)

5.6 Describe the need for financial

information

Financial information is important.

■ Have you ever tried to budget or save for

a large purchase?

■ It’s important to know how much you can

spend.

■ Businesses also rely on financial

information.

Benefits of Positive Customer Relations

▪ Customer loyalty

▪ Increased business

▪ Positive image

▪ Increased productivity

CR:003 Explain the nature of positive customer relations

Which have you written more? Bad reviews or good
reviews for businesses?

Bad reviews

Good reviews

Every Element of a Company Impacts
Customer Relations

▪ Business activities

▪ Technology

▪ Communication

▪ Work environment

▪ Employees

CR:003 Explain the nature of positive customer relations

Explain how a company’s superior use of
technology provides you with convenience.

5.5 Case Study

Jack is a customer service representative for a large
telecommunications company. His primary responsibility is to help
customers work through problems with their cable or internet. He
enjoys helping other people and always tries his best to stay positive,
even when customers treat him poorly. Today, however, Jack
received a call from a particularly irritated customer. The customer
was angry that his internet connection was acting up, so Jack led
him through the standard troubleshooting procedures. The customer
wasn’t satisfied with Jack’s help, and even called Jack several
derogatory names. Furious, Jack hung up on the customer – he had
had enough! Later that day, Jack felt bad that he hadn’t handled the
situation more professionally. But the customer was so rude, even
when Jack tried his best to help him. What do you think? Should
Jack have continued to help the customer even though he was being
treated poorly? (Ethical Principles Involved: Fairness, Respect,
Viability)

Multiple Choice

Professionals who work in this industry deal with large amounts of _________ especially by large companies.

• candies

• pizza

• chips

• money

Multiple Choice

Finance cluster consists of making strategic decisions about how to obtain, save, protect and grow the ___________ of individuals and companies.

• food

• clothing

• financial assets

• city

Financial Information Is Important
to Businesses

▪ Business data must be

organized into useful
information.

▪ Financial statements are

used by many internal
and external users.

FI:579 Describe the need for financial information

Explain how your personal financial information
helps you make decisions.

Qualities of Useful Financial Information

▪ Understandable

▪ Relevant

▪ Reliable

FI:579 Describe the need for financial information

Benefits of Using Common
Accounting Standards

� Data are created with consistency.

� Data are comparable.

FI:579 Describe the need for financial information

Financial Information Is Useful

▪ Assists with decision-making

▪ Helps with business plans and

strategies

▪ Predicts future financial trends

FI:579 Describe the need for financial information

Give an example of financial
information that can help a
company prepare for a
future goal or a business
challenge.

Multiple Choice

Balance sheet

• a document that shows how much money an organization gained or lost in a certain period of time

• an accounting technique that records reductions in value

• a document that shows a company's assets, liabilities, and equity at a certain point in time

Multiple Choice

The function of business that involves money management

• Accounting

• Production

• Management

• Finance

Multiple Choice

The operation/function that keeps track of a company's financial situation

• Finance

• Production

• Accounting

• Management

Multiple Choice

It is responsible for promoting and selling products and services which satisfy customer needs and wants

• Human Resources

• Marketing

• IT

• Finance

Multiple Choice

It is responsible for the management of money in a business.

• Marketing

• Human resources

• IT

• Finance

Multiple Choice

is about gathering information concerning your target customers. Who are the people you want to sell to? Why should they buy from you as opposed to a rival business?

• marketing

• logistics

• warehousing department

• customer service

Multiple Choice

Advertising

• Human resources

• Production

• Marketing

• Finance

Financial Information Is Useful

▪
Reducing expenses

▪
Increasing sales

▪
Boosting profitability

▪
Managing debt

▪
Making purchases

FI:579 Describe the need for financial information

Assists in managerial
decision-making

Helps companies strategize
and plan

Predicts future financial
trends

Drag your circle to select which
category matches these tasks:

Financial Information Is Useful

▪
Sales

▪
Income

▪
Expenses

FI:579 Describe the need for financial information

Assists in managerial
decision-making

Helps companies strategize
and plan

Predicts future financial
trends

Drag your circle to select which
category matches these tasks:

5.7 Explain the concept of

accounting

Ever had a goal to save for a big purchase or to budget your
money?

■You probably found it helpful to keep track of all the money
you saved or spent.

■When you keep careful records, you know exactly how much
money you can spend or save at any given time.

■You are keeping track of (accounting for) your money.

■Just as you need to account for your money to accomplish
your goals, so do businesses.

Accounting

▪ Process of gathering,

recording, organizing,
and reporting financial
data

▪ Shows a business’s

financial health

▪ Provided for internal

and external users

FI:085 Explain the concept of accounting

How do YOU keep track of your money?

Multiple Choice

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:

• Balance Sheet

• Income Statement

• Statement of Cash Flows

• None of These

Multiple Choice

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the:

• Balance Sheet

• Income Statement

• Statement of Cash Flows

• Cash Statement

Accounting Tools

FI:085 Explain the concept of accounting

▪ Accounting system

▪ Accounting cycle

▪ Bookkeeping

▪ Journals and ledgers

To be effective, the system should be easy to use,
expandable, process data quickly, and be
affordable to operate.

Analyzing Transactions

▪ Source documents are analyzed.

▪ Amounts and accounts affected are determined.

FI:085 Explain the concept of accounting

What are
some
examples of
documents
that are
analyzed?

Multiple Choice

Accounting is a process of identifying, recording, .......... and reporting economic information to decision makers

• calculating

• summarizing

• writing

• auditing

Multiple Choice

Which accounting serves external decision making...

• Financial Accounting

• Cost Accounting

• Management Accounting

• Fraud Accounting

Multiple Choice

Any transaction will have effect at least on two accounts is so called

• Double entry bookkeeping

• Bookeeping

• Accounting

• Financial report

Journalizing Transactions

▪ Cash accounting method

• Journal entries made when money is exchanged

• Tracks the actual amount of cash on hand

▪ Accrual method

• Journal entries made when transaction is initiated

• Tracks sales and expenses instead of cash

FI:085 Explain the concept of accounting

Posting to Ledgers

▪ Journal records are posted to appropriate ledgers.

▪ Ledgers contain records for specific departments.

FI:085 Explain the concept of accounting

Multiple Choice

A columnar accounting form used to summarize ledger information to prepare financial statements

• A columnar accounting form used to summarize ledger information to prepare financial statements

• work sheet

• adjustments

• balance sheet

Multiple Choice

A proof of the equality of debits and credits in a general ledger.

• trial balance

• income statement

• income statement

• work sheet

Multiple Choice

Two financial statements are prepared from the information on the work sheet.

• True

• False

Multiple Choice

On a trial balance,

• all general ledger accounts are listed.

• only ledger accounts that have balances are listed.

• only accounts with debit balances are listed.

• only accounts with credit balances.

Multiple Choice

From which accounting document is the trial balance prepared?

• Journals

• Ledgers

• Source documents

• Vouchers

Multiple Choice

This is the process of transferring amounts from journals to ledgers.

• Classifying

• Posting

• Summarizing

• Recording

Balancing the Books

▪ A trial balance is prepared.

▪ Lists current balances of different ledger accounts

▪ It is used to check the accuracy of journal and ledger entries.

FI:085 Explain the concept of accounting

Why is it important
to make sure the
books are balanced?

Preparing Financial Statements

▪ Balance sheet—captures current financial condition

▪ Income statement—shows profit and loss

▪ Cash flow statement—estimates expected cash flow

FI:085 Explain the concept of accounting

Preparing Financial Statements

Balance sheet

▪The balance sheet captures the business’s financial
condition at a particular point in time.

▪It presents the components of the basic accounting
equation: Assets – Liabilities = Owner’s Equity.

▪The balance sheet gets its name from the fact that both
sides of the equation must balance each other.

Why are balance sheets important for a business to complete?

FI:085 Explain the concept of accounting

Multiple Choice

A balance sheet shows:

• how much gross profit it has

• how much net profit it has

• how much a business owns and owes

Multiple Choice

This document is known as what?

• Account Equation

• Balance Sheet

• Income Statement

• Bank Statement

Multiple Choice

What is this?

• An invoice.

• A bank statement.

Preparing Financial Statements

Income statement

The income statement, sometimes called the
profit-and-loss statement, shows how much
money the business has made or lost
during a specific period of time, usually
one year.

How could income statements prevent companies from losses?

FI:085 Explain the concept of accounting

Preparing Financial Statements

Cash flow statement

▪A cash flow statement is a financial
summary estimating how much cash is
expected to flow into the business in the
given time period.

▪This information is used to plan ahead by
generating more income and/or reducing
expenses.

Explain a situation when a business may
need to prepare a cash flow statement.

FI:085 Explain the concept of accounting

Closing the Books

▪ Temporary accounts

are closed.

▪ Account balances are

transferred to permanent
accounts.

▪ Accounting cycle

starts over.

FI:085 Explain the concept of accounting

5.8 Explain the role of finance in

business

Ever dreamed of running your own

business?

■ You probably have a product in

mind.

■ You may have thought about a

business location.

■ Do you know how you will fund it or

handle your finances?

What Is Finance?

▪ The way a company

funds itself and manages
its money

▪ The function of money

and money management

FI:354 Explain the role of finance in business

If you started a business, how would you
obtain money to fund your startup costs?

Finance vs. Accounting

▪ Accounting

• Recordkeeping activities

• Provides accurate financial

information

▪ Finance

• Money management

decisions

• Boosts company growth

and reduces risks

FI:354 Explain the role of finance in business

Multiple Choice

Anything that is purchased with the hope that it will generate income or be more valuable at a future date.

• investment

• loan

• income

• expense

Multiple Choice

Revenue is ...

• Money made from selling products

• Money paid to suppliers for materials

• Expenses x Units produced

• Monthly rent payments to landlord

The Importance of Finance

▪ Helps set future goals

▪ Plans and controls spending

▪ Ensures sufficient financing

▪ Makes sure customers pay

their bills

▪ Invests company money

FI:354 Explain the role of finance in business

Finance Activities

• Administration of assets

• Financing

FI:354 Explain the role of finance in business

Administration of assets is:
Determining what types of assets
the company should own, as well as
the proper mix of those assets

Working Capital Management

▪ Short-term decisions

▪ Balances assets and

liabilities

▪ Cash conversion cycle

▪ Return on capital

FI:354 Explain the role of finance in business

Working Capital Video Link
Open the video, complete the
next slide

Capital Investment Decisions

▪ Long-term decisions

▪ Capital budgeting process

▪ Identifies profitable projects

▪ Selects type of funding

▪ Determines dividends

FI:354 Explain the role of finance in business

Share an example of how a company
can use existing equity other than cash
to fund a project.

Multiple Choice

____________ is the wealth in the form of money or other assets owned by a person.

• Value

• Assets

• Capital

• Valuables

Multiple Choice

Money that is taken from your own pockets is known as ______________.

• Personal savings

• Loans

• Findings

• Financed savings

Multiple Choice

Money that is taken from your own pockets is known as ______________.

• Personal savings

• Loans

• Findings

• Financed savings

Multiple Choice

The most common types of capital include personal savings, family and friends, ____________ and outside the box.

• People places

• Financial institutions

• Schools

• Loan sharks

Activity 5.8

Research on how finance activities are
performed at big and small businesses and
develop a rationale for those differences and
similarities

Importance of Operations

▪ Impacts every business

function

▪ Supplies quality products

▪ Helps achieve business and

financial goals

OP:189 Explain the nature of operations

Take a look at this article, answer the question on the next slide

5.10 Identify ways that technology

impacts business

■ You depend on technology for

many things.

■ So do businesses.
■ List your top 3 must haves!!!

Business Application of Technology

▪ Technology is “the practical application of science

to society and industry.”

▪ New devices/inventions

▪ Improvements to materials/new processes

▪ Helps companies improve and compete

▪ Innovative technologies create new industries

NF:003 Identify ways that technology impacts business

Share an example of a new innovative
technology.

Important Technologies

▪ Internet
▪ VoIP
▪ Mobile phones/devices
▪ GPS
▪ Computer technology
▪ Databases
▪ Computer networks
▪ Electronic transfer

of funds

NF:003 Identify ways that technology impacts business

▪ Computer automation
▪ Improved materials/processes
▪ Virtual reality

Share another example of an important
technology that is impacting business today.

Technology’s Impact on Business

▪ Affects industry

▪ Changes the nature of marketing

▪ Impacts jobs

▪ Increases competition

▪ Information age

NF:003 Identify ways that technology impacts business

Predict how technology will impact jobs in the future

Multiple Choice

Can technology help a worker be more efficient and effective?

• True

• False

Multiple Choice

a group of computers that are interconnected in order to share information or documents

• database

• PDF

• computer network

• scheduling software

Multiple Choice

software that allows you to create slide-show presentations.

• projector

• e-mail

• PDF

• presentation software

Multiple Choice

a Portable Document Format used to send documents electronically

• Fax Machine

• PDF

• Web browser

• GPS

Multiple Choice

software that organizes a collection of data

• Data

• Email

• Database

• web page

Multiple Choice

software used to browse the World Wide Web

• Web page

• Email

• Database

• Web browsers

Multiple Choice

Information from performance reviews may be used in determining pay increases or promotions.

• True

• False

5.10 Case Study

Bryant is a marketing manager at a small outdoor-supply
company. As part of his job, he maintains a database of customer
contact information including home addresses, phone numbers,
and email addresses. One day at work, the database
malfunctions. While troubleshooting the problem, Bryant
accidentally activates a promotional email that sends every
subscribing customer a 40% off coupon. Bryant knows that his
company will lose money if every customer is able to buy
merchandise for such a large discount – but he feels bad
revoking the coupons. It was his mistake, after all. What do you
think Bryant should do? Should he issue an apology and
deactivate the coupons, or should he do nothing? (Ethical
Principles Involved: Integrity, Accountability, Fairness, Viability)

Activity 5.10

Analyze the work that they or adults they
know do at work, identify and list the ways
that technology has impacted the work, and
create a visual to depict that impact. - Make A
copy of the 5.10 Jam Board

5.11

Discuss the nature of

information management

■ Ever had to make a large decision?
■ You need accurate information to

make a good decision.

■ Businesses also rely on information

to make decisions.

Information Management

▪ Management of

information and data

▪ Storage of data in

useful formats

▪ Refers to any knowledge

that holds value

NF:110 Discuss the nature of information management

Choose a type of business and identify
important information that is specific to its
particular industry.

The Importance of Information Management

NF:110 Discuss the nature of information management

▪ Reduces business risk

▪ Saves time and money

▪ Serves customers effectively

▪ Creates consistency and credibility

▪ Documents compliance with laws

▪ Preserves identity and brand

▪ Achieves business continuity

What type of businesses or organizations MUST
master information management?

Information Management Guidelines

▪ Make sure information is effective.

� Accurate and complete

� Up to date

� Retrievable

� Accessible and secure

▪ Establish and follow policies.

▪ Prioritize important needs.

▪ Have a coordinated plan.

▪ Assign responsibility.

NF:110 Discuss the nature of information management

Share a time when you have
managed information

Challenges of Information Management

▪ Employees’ roles are

misunderstood

▪ Information overload

▪ Companies have unique

needs

▪ Changing needs and

technologies

▪ Risk of electronic storage

NF:110 Discuss the nature of information management

▪ Risk of audits/lawsuits

▪ Protect proprietary

knowledge

▪ Protect customers

▪ Disaster recovery

Share an example of a challenging situation
created by information management experienced
by a business.

Information Management Trends

▪ Built-in reporting

procedures help with
regulation compliance

▪ Accurate information

needed for increased
competition

▪ IT resources/security

needed for outsourcing and
remote workers

NF:110 Discuss the nature of information management

Activity 5.11

Now that you know what information
management is, select a large company like
Amazon, Google, or Walmart and determine
what types of information they are collecting.
Create a diagram with the information
collected and WHY they are collecting it.