Command vs. Market

Command vs. Market
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  • Well we were learning about the 4 functions of business in class but I still don't get it. I have a quiz tomorrow so I want to understand.
  • What's wrong honey?
  • Well, if you want to sell a product, you need someone to promote it. A marketer does that and they also determine the price and place the product will be sold out
  • Well, production is whatever products a business creates or sells. So Apple for example produces electronics and software
  • Ohh I see! and what is marketing?
  • Now, management focuses on how the business is run. A management team will set goals, make a plan, solve issues, and they know how to respond to competition
  • Ok so they are in charge of making sure everything is going as planned. But who is in charge of the money?
  • That's finance! They make plans and manage financial records related to the businesses’ finances
  • Wow mom! I finally understand that now! Can you go over the difference between market and command economies?
  • WOW MOM! I am going to ace that quiz now! Thank you for your help!
  • Of course dear!
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