Business in the U.S. Economy

Chapter 5.1

2012

Business & the Economy“The business of America is business”

- Calvin Coolidge (Patron saint of the Tea Party)

“The most important role of businesses is to

make and distribute products and services needed by consumers, government, and other

businesses”

Agree or Disagree?

• Employment

• Purchase Good and Services

• Compensate Owners and Investors

• Tax Payments

*Make and distribute products and services needed by consumers*

Roles of Business

• http://www.youtube.com/watch?v=ZmfXksLir1g&feature=related

• http://www.youtube.com/watch?v=9jqY7aDOvCg

• http://www.youtube.com/watch?v=2XIQkDldpmI&feature=related

U.S. Economic Changes

Employment Data

• Essential for determining economic and employment trends at various levels

• Impacted by “baby boomers” 1946-1964

http://money.usnews.com/money/careers/articles/2011/05/06/graph-april-jobs-report-continues-upward-trend

Percent of Businesses by Employee Size

Source: U.S. Census Bureau

Pressures on the Employees

• Technology streamlined production and introduced cost-cutting procedures– Examples?

• Wages

• Work-week hours

• Opportunities

• Contingent workers

• Will the jobs that interest you today be available in 10 years?

• Do today’s workers have more or fewer pressures on them than workers of the past? Why?

….Round Table….

• Generating Ideas

• Raising Capital

• Employing and Training Personnel

• Buying Goods and Services

• Marketing Goods and Services

• Maintaining Business Records

Business Activities

• Producers– Builders, Product Manufacturers

• Intermediaries– Retailers and Wholesalers

• Service Businesses– Dentists, Baby-sitters, Delivery Service

Types of Businesses

How does a manufacturer differ from an extractor?An extractor takes natural resources, such as oil or timber, for direct consumption or for use in developing other products. A manufacturer takes resources supplied by others and converts them into useable products.

….Round Table….

1. The largest number of U.S. businesses employ ___________a. More than 100 people

b. Between 50 and 100 people

c. Between 10 and 20 people

d. No employees other than the owner

2. Which of the following is NOT one of the common activities of all businesses?

a. Producing goods and services

b. Employing and training personnel

c. Marketing goods and services

d. Maintaining business records

3. A retailer is an example of a(n) __________a. Extractor

b. Producer

c. Intermediary

d. Service business

Share the info…Answer & hand in before leaving please