Chapter

Motives and
Functions
of a Business

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Motives and
Functions
of a Business

Learning Objectives

Goals

Resources

Motives & Functions

Of a Business

Stakeholders

Environment

Decisions

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Motives and
Functions
of a Business

The Key Decisions in

Running A Business

Copyright 2007 South-Western. All rights reserved.

Motives and
Functions
of a Business

Goals
Resources
Stakeholders
Environment
Decisions

Goals of a Business
Consumer

Owner

Needs

Profit

Opportunity Lower Price

Copyright 2007 South-Western. All rights reserved.

Where Profits Come From

Goals
Resources
Stakeholders
Environment
Decisions

Revenue
- (Expense)
Profits
Attract

Demand

Expense

Motives and
Functions
of a Business

Copyright 2007 South-Western. All rights reserved.

Motives and
Functions
of a Business

Government & Nonprofits

Goals
Resources
Stakeholders
Environment
Decisions

Free Markets

Nonprofit

Copyright 2007 South-Western. All rights reserved.

Motives and
Functions
of a Business

Goals
Resources
Stakeholders
Environment
Decisions

Factors of Production

Natural Resources
Human Resources

Capital

Entrepreneurship

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Motives and
Functions
of a Business

Technology

Goals
Resources
Stakeholders
Environment
Decisions

Information
Technology

Electronic
Business

Copyright 2007 South-Western. All rights reserved.

Motives and
Functions
of a Business

Goals
Resources
Stakeholders
Environment
Decisions

Entrepreneurship
Creates

Accepts

IDEAS

RISK

Copyright 2007 South-Western. All rights reserved.

Motives and
Functions
of a Business

Goals
Resources
Stakeholder
s
Environment
Decisions

Stakeholders

Owners

Creditors

Employees Suppliers Customers

Copyright 2007 South-Western. All rights reserved.

10

Motives and
Functions
of a Business

Goals
Resources
Stakeholder
s
Environment
Decisions

Owners

Entrepreneur Stockholder

Copyright 2007 South-Western. All rights reserved.

11

Motives and
Functions
of a Business

Owner Profiles

Goals
Resources
Stakeholder
s
Environment
Decisions

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12

Motives and
Functions
of a Business

Creditors

Goals
Resources
Stakeholder
s
Environment
Decisions

Loans

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13

Motives and
Functions
of a Business

Goals
Resources
Stakeholder
s
Environment
Decisions

People in Business

Employees
Suppliers
Customers

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14

Motives and
Functions
of a Business

People in Business

Goals
Resources
Stakeholder
s
Environment
Decisions

Copyright 2007 South-Western. All rights reserved.

15

Motives and
Functions
of a Business

Goals
Resources
Stakeholders
Environment
Decisions

Business Environment

Social

Industry

Economic

Global

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16

Motives and
Functions
of a Business

Business Decisions

Goals
Resources
Stakeholders
Environment
Decisions

Copyright 2007 South-Western. All rights reserved.

17

Motives and
Functions
of a Business

Decisions and Performance

Goals
Resources
Stakeholders
Environment
Decisions

Copyright 2007 South-Western. All rights reserved.

18

Motives and
Functions
of a Business

Decision-Making Focus

Goals
Resources
Stakeholders
Environment
Decisions

Copyright 2007 South-Western. All rights reserved.

19