Business Characteristics - Student Notes

Directions: Fill in the blanks.

Essential Question: Why are most businesses divided into different

departments? (You will answer this question at the end of Part 2)

Types of Businesses Segment

Business Vocabulary
● Goods and services have a great impact on the _______ system.
● Goods refer to ______ items that can be used, stored, evaluated,
taken home, or consumed. (Think about clothing, groceries, school
supplies.)
● _________ are intangible properties where the service receiver does
not obtain anything tangible or ownership. (Think about haircuts, car
repair, financial planning.)

1. Types of Businesses
• Are classified by the work activities performed
• Include:
− _____________
− processors
− manufacturers
− intermediaries
− service firms
− _____________ organizations

2. Producers
• Develop products for distribution from raw
goods
− _____________ are materials derived from natural resources
• Examples include:
o − farming
o − forestry
o − _____________

Accompanies: Business Characteristics 1

 Business Characteristics - Student Notes
3. Processors
• Change raw goods into a more
finished form
• Produce _____________
• Examples include:
o − cotton mills
o − oil refineries
o − _____________
o − food processors

4. Manufacturers
• Change raw or processed goods into _____________
• Examples include:
− juice factories
− _____________
− automobile factories

5. Intermediaries
• Are referred to as the _____________
• Move finished goods from one business to another
• Buy, store and resell goods
• Examples include:
− wholesalers buy finished goods from manufacturers in large
quantities and sell them to businesses in smaller quantities
− _____________ buy finished goods from manufacturers or
wholesalers and sell them directly to the consumer

6. Service Firms
• Provide services to _____________ and other businesses
• Examples include:
− beauty salons
− landscaping companies
− _____________

Accompanies: Business Characteristics 2

 Business Characteristics - Student Notes
7. Non-profit Organizations
• Provide goods and services to businesses and individuals
• Operate on _____________, volunteers and philanthropists rather
than income/profit
• Examples include:
− Salvation Army
− United Way of America
− _____________
− YMCA and YWCA

Human Resources & Management Segment

1. Human Resources
• Requires _____________ and proper procedures
• Requires people with strong human relation and communication skills
• Responsibilities include:
− maintaining the employment process
− training and _____________

2. Employment Process
• Is carried out by _____________
• Goal:
− to obtain qualified employees who are well-matched to the open
position
• Steps:
− assess employment needs
− _____________
− select employee who fulfills goals
− help employee get oriented

Accompanies: Business Characteristics 3

 Business Characteristics - Student Notes
3. Employment Process
• Step one: assess employment needs
− determine what _____________ in the company need to be filled
− analyze what the open position involves
− obtain or write job description, including:
▪ qualifications
▪ _____________
▪ responsibilities

4. Employment Process
• Step two: recruit potential employees
− look _____________ first
− contact and utilize the following:
▪ newspaper and/or Internet advertising
▪ colleges, universities and technical or vocational schools
▪ _____________
▪ employment agencies and/or labor and professional
organizations

5. Employment Process
• Step three: select employee who _____________
− review applications, résumés and cover letters of applicants
− choose applicants appearing to best match company opening and
conduct interviews
o if there is not an appropriate applicant, _____________ at
recruiting potential employees
− review all obtained information and select best applicant

6. Employment Process
• Step four: help employee get oriented
− introduce to _____________
− help fill out new employee paperwork
− _____________ about company pay,
benefits, policies, etc.
− assist during adjustment phase

Accompanies: Business Characteristics 4

 Business Characteristics - Student Notes
7. Training & Developing
• Is also performed by human resources
• Goal:
− maintain well-trained, _____________
• Is accomplished through:
− training
− _____________
− focusing on motivation and cooperation

8. Training
• Can be done individually or in groups
• Includes the following techniques:
− _____________
- companies train employees while they work
- employees have hands-on practice with supervision
- occurs typically on an individual basis
− _____________
- companies teach new skills to several employees at once
- employees listen and learn from each other
- employees get the opportunity to express ideas and share
experiences

9. Evaluating Performance
• Is often achieved through performance appraisals
− managers evaluate _____________
− managers provide feedback to employees
• Helps when making decisions, including:
− transfers
− layoffs
− _____________
− terminations

Accompanies: Business Characteristics 5

 Business Characteristics - Student Notes
10. Focusing on Motivation
- Can help meet employees needs
- Includes two types:
− _____________
motivation through outside sources
− for example: money, benefits, recognition
− _____________
motivation occurring internally
− for example: challenge, enjoyment, accomplishment

What motivates you to do well in school or hobbies? Are they extrinsic or

intrinsic motivators?

11. Motivation
• Can be ensured by meeting _____________, including:
− hierarchy of needs proposed by _____________:

12. Focusing on Cooperation

• Improves the output produced by _____________ in groups
• Is needed to ensure high work quality and employee job satisfaction
• Requires effective communication in order to:
− enhance group dynamics
− ensure employees know and _____________
− encourage employees to contribute ideas

Accompanies: Business Characteristics 6

 Business Characteristics - Student Notes
13. Management
• Is the process of reaching a company’s goals and objectives by
_____________
• Has these four main functions:
− planning
− organizing
− _____________
− controlling

14. Planning
• Is management’s _____________
• Means determining a direction for the company
• Includes the following:
− setting long- and short-term goals
− determining strategies to utilize company resources
− _____________

15. Organizing
• Is management’s second main function
• Means obtaining and coordinating resources to meet _____________
and objectives
• Includes the following:
− creating structure
− dividing up the workload
− _____________
− coordinating activities

16. Directing
• Is the third main function of management
• Is _____________ to carry out their assigned tasks
• Includes the following:
− staffing
− motivating
− _____________
− guiding

Accompanies: Business Characteristics 7

 Business Characteristics - Student Notes
17. Controlling
• Is management’s fourth main function
• Is _____________ meet expected goals and objectives
• Includes the following:
− evaluating employee performance
− _____________
− setting standards for desired performance

18. Management
• Is most effective when _____________ functions play an important
role
• Is responsible for making sure the company runs smoothly
• Must remember to _____________ regularly and provide feedback to
the appropriate personnel

Accompanies: Business Characteristics 8