How does a business impact the economy? Learning the basic principles of business will help you become a more valuable employee by understanding how the economy operates. Understanding business concepts will help learn the processes necessary to create a business and become your own boss. Having business knowledge can help you be a better consumer and investor in your personal life.

Business provides products

How does business provide products?

Form: added when products are available at convenient places (ex. smartphone)

Place: added when products are available at convenient times. (ex. digital downloads)

Time: added when products are made available at the times that customers need and want them. (ex. banks offering early morning teller services)

Information: added when facts and details about a product are made available to a customer. (ex. electronic manufacturers making digital guides)

Possession: added when it becomes easy for customers to acquire a product. (ex. online shopping sites)

Business crates markets

How does business create markets?

When buying back-to-school supplies at an office supply store or other retail store, you are shopping in a physical market. Downloading apps for your smartphone is an example of shopping in an online market. A community rummage sale can even be a marketplace. Anywhere a business exchange takes place is a market.

Business generates economic benefits

How does business generate economic benefits?

Business generates economic benefits through employment, goods and services that give customers choices, and taxes.

Functions of a business

How does a business function?

Businesses function through production, finance, marketing, and management.

production: any activity related to making a product

finance: all business activities including money

marketing: all activities that identify, anticipate, and satisfy customer demand while making a profit

management: the process of controlling and making decisions about a business