Purposes & Functions of Business

Money that remains after a business has paid for the expenses of running the business. Income > Expenses

• Profit

• Profit Motive

• Wants

• Competition

A person's incentive to work to gain something for himself or herself (that is to make money).

• Profit

• Profit Motive

• Wants

• Competitin

Contest between businesses to win customer's business and loyalty.

• Needs

• Wants

• Competition

• Profit Motive

Items necessary for existence, such as clothing, food, and shelter.

• Wants

• Needs

• Goods

• Services

Items that would be nice to have, but are not necessary.

• Wants

• Needs

• Goods

• Services

A person who uses goods or services. Many times the _______ is also the customer (purchaser).

• Goods

• Services

• Competition

• Consumer

Items businesses sell that can be physically weighed or measured, such as iPods and CD's.

• Needs

• Wants

• Services

• Goods

Tasks that businesses perform or provide for customers such as haircuts and car washes.

• Needs

• Wants

• Services

• Goods

The process of recording and reporting the financial data for a business.

• Accounting

• Management

• Marketing

• Operations

The process of leading and directing all or part of an organization.

• Accounting

• Management

• Marketing

• Operations