Function of a Business

OBJECTIVES

By the end of this lesson students will be able to:
❖Define the term Business
❖Explain the functions of a Business
❖Complete a table illustrating the Production Process

BUSINESS

A Business is the activity
of making, buying &
selling goods or services.

THE MAIN AIM OF A

BUSINESS

The main aim of any
business is to make a
profit in order to give the
best possible return to the
owners for the money
they have invested in the
company.

FUNCTIONS OF A

BUSINESS

There are four main

functions of a business:

•

Production

•

Marketing

•

Management

•

Finance

PRODUCTION

The main reason a
business exists is to
provide goods and
services to consumers
and to earn a profit.

PRODUCTION

The production function of a
business takes goods from its
raw material stage and
changes them into a finished
product.

Product

Raw
Materials

Process

Finished
Products

Lemonade

Water, lemon,
sugar,
container

Mix all
ingredients
together

Lemonade

MARKETING

Marketing involves attracting(persuading) as much
customers as possible so that the products succeed in the
market place.

All businesses in an economy need to complete marketing
activities in order to make their products and services
available to consumers.

MARKETING

Once the products are produced it is the function of
marketing to promote sales to the consumers.

Marketing is not only for products but also for labour,
capital, land & buildings as well as the many services that
are needed.

MARKETING
TECHNIQUES

Examples of marketing techniques include:

•

Leaflets/Flyers

•

Posters

•

Word of mouth

•

Media (radio/television)
•

Social Media

•

Samples

MANAGEMENT

The entrepreneur takes on
the role of manager. He/she
will decide how much will be
produced, the cost price and
who the product/service will
be sold to.

This is setting goals and
determining how goals can be
met .

FINANCING

The first responsibility of finance is determining the amount
of capital needed for the business and how the capital will be
obtained.
The entrepreneur will decide where he/she will get the capital
and the amount needed to start the business.

The entrepreneur can borrow from the bank, from a friend
or withdraw money from a personal savings account.

THE END!