LM - Functions of Business [LESSON]

Functions of Business

In this lesson, you will learn about the functions of business and how the management function plays a crucial part in the success of a business.

Functions of Business | Knowledge Point

To understand the role of management in a successful business operation, it is important to first identify the various functions of business.

There are many different types of business functions. The type of business or organization will determine the business functions that are important for success. Four of the most prevalent business functions are management, production/operations, marketing/sales, and accounting/finance. These business functions, along with any other functions that might be a part of an organization, are interrelated. This means that one function does not stand alone but each function works in conjunction with all the others. For example, finance provides information to management to make better decisions about operations and production. Then, operations use the finance function to provide funding for the raw materials and machinery to produce the products that marketing promotes and the sales team sells.

Functions of Business | Knowledge Point Activity

Read about the functions of business in the activity below. Click all four parts of the circle before moving on.

Function of Management | Knowledge Point

Notice that there are four functions of business highlighted at the beginning of this lesson. One of the functions, management has four functions which are highlighted below.

Functions of management are management, production and operations, marketing and sales, and finance and accounting.

 

Management Function | Knowledge Point

Now that you understand the basic functions of business, let’s take a closer look at the management function.

Functions of Business | Practice Activity

Now that you have spent some time learning about the functions of business, please take the self-assessment below. Make sure to click the arrow at the bottom of the activity to move on.  

Reflection

The functions of business are interrelated and include accounting/finance, marketing/sales, management, and production/operations. Each business function is dependent on the others. The management function involves managers working to coordinate, make decisions, solve problems, and allocate resources all while guiding the organization toward success.

[CC BY-NC-SA 4.0 Links to an external site.] UNLESS OTHERWISE NOTED | IMAGES: LICENSED AND USED ACCORDING TO TERMS OF SUBSCRIPTION - INTENDED ONLY FOR USE WITHIN LESSON.