Introduction To Introduction To BusinessBusiness

Tim Trimbath

Welcome

Intro to class Attendance By PCC Request - What is plagiarism? A

Cautionary Tale

The Class

How to get an “A” (Hint – It’s EASY)• Participate – 10%

• Do your homework – 20%

• Study for your exams – 40%

– Exam questions come right from the book – no trickerations!

• Do your written class project – 20%

• Present your project to the class – 10%

Class Project

Part 1 (page 110) Part 2 (page 215) Part 3 (page 309) Part 4 (page 409) Part 5 (page 547) Part 6 (page 623)

Chapter 1Why Study This?

Why should you study business?– Help choose a career– To be a better, more successful employee– To learn how to start your own business– To be a better, wiser, consumer

What do we mean by “business”

Terms– Business– Free enterprise– Satisfaction of needs– Business profit– Stakeholder

Types of Economic Systems

Economics – how wealth is created and distributed

Factors of production– Land and Resources– Labor– Capital– Entrepreneurship

Capitalism

Maximizes Freedom Individuals serve their own interests and help

society in the process Assumptions of Capitalism

– Right to small gov’t– Right to economic freedom– Right to private property– Right to create wealth– Laissez-faire

Capitalism in US – Mixed Economy

Exhibits elements of both communism and socialism

Command Economy

Gov’t decides what goods and services are produced, how to produce them, how much, for whom they will be available and who owns the factors of production

2 major forms – Socialism and Communism

Measures of Economy

Productivity - Output per worker per hour GDP Inflation Deflation CPI PPI

The Business Cycle

Growth Peak Recession Trough Repeat

Recession vs. Depression

Types of Competition

Perfect Competition – Theory, Supply, Demand, and Market Price

Monopolistic Competition – Lots of buyers AND sellers

Oligopoly – Few Sellers Monopoly – One Seller

– Natural, limited or legal monopolies

History of Markets in US