Principles of Business Marketing & Finance Chapter 4

for profit business
An organization that generates revenue
not for profit organization
An organization that exists to serve some public purpose
Business that create goods and services
Businesses or people that take natural recourses from land
Businesses that use supplies from other producers
People or Businesses that sell the goods and services from producers to consumers
Purchase large quantities of products directly from producers and sell the products
Buy products from wholesalers or directly from producers and sell them to consumers to make a profit
service business
Earns profit by providing consumers with services that meet their needs and wants
North American Industry Classification System (NAICS)
a numeric system used to classify businesses and collect economic statistics
consumer market
Consists of customers who buy products for their own use
business market
Customers who buy products for use in business
business to consumer (B2C)
Businesses sell primarily to individual consumers
business to business (B2B)
Businesses that sell primarily to other businesses
government market
includes national, stats, and local governmental offices and agencies
non-profit organizations may be public or private
A business that is owned and often operated by a single individual
legal responsibility
An association of two or more persons who co-own a business with the objective of earning a profit
partnership agreement
A written contract that establishes a partnership
A business that is legally separate from its owners
A share of ownership in a corporation
A portion of the corporation’s earnings distributed to stockholders
board of directors
A group of individuals who make high-level management decisions for the business and establish company policies
Limited Liability Company (LLC)
Combines the benefits of a corporation with those of proprietorships and partners
owned and operated by those using its services