Submitted to

Farzana Akter
Lecturer of
Southeast university

Submitted by
Md Shahajalal Rafin
Id:2021110000012
Batch:58
Course
Introduction to Business BUS1111/BUS111/BUS130
Section:1

Date:05.09.2021
 1 No Question Answer
The Relationship between Profit and Risk:
When doing a business an entrepreneur has to face many things that kepps the business
moving forward. He has to take risks in order for the business to be able to make profit and
be alive in the challenging business world. Those risks and profit always interwind with each
other. Those as follows,
• When as an entrepreneur you choose to do business you take the risk of losing your
money for the sake of earning a profit. You take a risk in various ventures which might
earn you a profit in the future. This very act of doing business is taking a risk for the sake
of earning profit
• Not everyone’s views on risk and profit are the same it varies from person to person.
Some thinks as a entrepreneur it’s required for you to take some risk for earning a
substantial amount of profit , while other believes that risk is merely the extension of
some unwise decision. But at the end it’s up to the entrepreneur to decide whether or not
he is ready to take risk or not.
• The more risk the greater the profit and losses. While A entrepreneur invest money in a
business if he takes high risk and he is successful he will receive a higher return . But If
he isn’t successful he might receive a lower return and end up having a loss . But if he
takes low risk he will take a lower return but his chances of losing too much is also
relatively lower.
• Starting a business is a very big risky endeavor for a entrepreneur as it depends on that
risk. If they will make a profit and be successful or will they lose all their money and time
invested.
Businesses and nonprofit organizations can raise the standard of living for all:
A business has many different kinds of operations each day . For those they require many
workforce and raw material along with other things that helps them operates successfully those
operations includes employing employees, buying different kinds of raw materials and other
necessities.
In here the expenses a business has to make might be other peoples earning which might grant
them financial stability. Like think you are doing a textile business . For this business you will
require many employees to operate that business you will also have to buy different kinds of raw
materials to turn them into product for your business. You will also need to pay different kinds of
bills like electricity bill, water bill and bills for other utilities. You will also need insurance for
safety reasons. When you are giving your employees salaries they are also earning money from
you which helps them in their financial stability . The same happens when you buy raw materials
from the producers and the whole sellers. Also when you pay your different kinds of bills. Your
those expenses helps those people and service. Whose service you might latter on use for your
own comfort. Though your revenue is also someone’s expense, such as those who chooses to buy
products from you.
A corporation also does many charitable contributions for the promotion of their products.
Which are mostly done via a nonprofit organization. A nonprofit organizations also has many of
the expenses that corporation does. But it’s mainly created for a certain kind of purposes like for
fighting a certain kind of illnesses, for religious reasons etc. They usually uses money earned in
this type of organizations to help with different kinds of problems which in turn helps people
outin increasing their living standards.
This way business and non profit organizations increases the living standards of all

2 No Question Answer
(a)
In the current world for a country to prosper properly it requires it’s population to be productive
and helpful to the country and its economy. If a country doesn’t have enough educated people it
will fall behind and at the same time it’s business sectors will also suffer. So it’s important not
only to progress your business ventures. It’s also required to progress others so they will be able
to keep up with your business.
In a quote Lao-Tzu has said that give man a fish and you Feed him for a day, but teach a man to
fish and you feed him for a lifetime. And also it’s said that Teach a person to start a fish farm,
and he or she will be able to feed a village for a lifetime. By which it’s implied that if you give
someone the result with out him knowing how to get that result he will be to do that only once
but latter on if he requires it again he might be able to get that and bother you again which will
increase your burden. But if you teach him how to get that result he might be able to provide for
himself . If you teach him to do it in a large scale he will be able to provide for many other
people.
By this if you teach someone to do some work he might be able make a living for himself thus
increasing the economy. He might also teach others too which will again increase the economy a
substantial amount.
This way if the economy is increased by a substantial amount your business will able to progress
faster as it will have more customers with higher buying power. Which in turn will allow you to
sell higher quality and quantity products with higher prices.
Like suppose you trained someone for a certain job either it’s for your corporation or something
else . But because you have trained him he will be able to earn money and might even teach that
to others. They in turn will also earn money by which they economy will grow which in turn will
allow your business to sell more stuff which will help your corporation have a bigger revenue.
But even if he only works for your corporation without teaching others you corporation will have
a capable worker.
(b)
Most businesses has varying kinds of competition. They have competitors of varying degrees .
Those competition is divided into four degrees, which are Perfect competition, Monopolistic
competition, Oligopoly and Monopoly.
Perfect competition
In perfect competition is a marketing situation in which there are a many sellers for the same
product which cannot be differentiated because of which no one has a firm grasp on the price of
the product.
Examples: farm commodities, the stock market, and the foreign exchange market
Monopolistic competition
Monopolistic Competition is a Market Structure in which multiple Producers make similar but
not identical products. The goods are similar enough to that they can be substitute of each other.
But a seller can still increase the price of the product specially made by them
Example: The jean industry, soft drink industry, home appliances, etc.
Oligopoly
In oligopoly there aren’t many sellers for the same product. They usually can’t keep others from
increasing price sometimes because of the small competition.
Example: Walt Disney, cell phone companies Etc
Monopoly
A market is a monopoly is when for a certain product there is only one know supplier who
controls the price and distribution of the product. They usually controls a entire supply side of a
economy. Example: Public utility companies, Luxottica, Google, Cable television.

3 No Question Answer
If I were ever to think about starting a business I would choose corporation as my chosen
business. Because this is what I am most familiar with and it can become an entity of it’s own
which if I ever were to die could still operate it self and can basically exist as long as it’s
maintained properly.
A corporation is a legal entity which is created when like minded people comes together to
endeavor for common purposes. It has various forms such as,
- It can associate with many organization like non profit organizations.
- It can also solely be a profit corporation
- Financial corporation
- Educational and othe program corporation
A corporation are also legalized as own entity. So it can declare itself unrelated to what it’s
members. Companies may collectively group together to form group of companies.
The important advantages of ownership of a corporation are as follows:
1. limited liability:
the owners of a corporation has limited liability. he only has liability for the amount of
share he owns.
2. ability to raise more money for investment:
A corporation can raise money far more easily for investment by selling
share a public corporation can easily expanse it’s business as there’s no limit to its
shareholders and thus the amount of money they can gather they have a great expansion
potential
3. perpetual existence:
As it’s not liable for what shareholders or it’s employees doing outside it’s worktime it’s
usually not affected if one of it’s share holders die or something else happens to them.
 4. professional management:
Because it’s usually in hands of people who are selected by the share holders for
management and also it’s employees are usualy salaried professional employed for their
job after examination so it offers professional management
5. transferability of shares:
if there is a unsatisfied share holder or one of them needing money, they can easily sell
their share and transfer their ownership of the corporation
6. Diffusion of Risk:
Because there are many there holders the risk is distributed between many members
In spite of its several advantages, the corporation form of ownership also suffers from some
disadvantages.
1. Initial costs:
The initial costs when starting a business is often times extremely high because of
different kinds of paper works and legal problems required for it.
2. Double taxation:
A corporation pays tax on income then when the share holders receive their part of share
they also has to pay tax in their income.
3. Size:
The size of the corporation sometimes becomes too big that it becomes difficult to
properly manage.
4. Difficulty of termination:
Once you start a company you terminate it anytime. It’s requires many steps to be
terminated
5. Conflict:
Sometimes the director and the management might not like each other way of work. Then
the director might cause people in the management to quit even if it’s the founder.
Although those disadvantages exists from my personal point of view they’re far from the
advantages I receive from starting a corporation. So I will choose to start one I ever think of
starting my own business