Understanding

the Motives and

Functions of
Business
The Goal of the To make profit
Business
Source of profit

Profit =
Revenues Expenses Revenues -
Expenses
Making profits: 3 conditions

DEMAND OF THE CUSTOMERS LOW EXPENSES

PRODUCT OR SERVICES
 Better job Make job
opportunities enjoyable

Benefits of
understanding
business
Top-notch
Higher ROI
performance
 Low efficiency
What Growth of alternative forms of work
happens if
govt Low satisfaction from customer end
influence Low profit
business?
Poor services
Non-profit business

Serves
specific cause
No profit
motive
Reinvestment
of profit
Resources to produce product/services

Natural Human Capital Entrepreneurship

resources resources
Stakeholders in a business

Owners Creditors Employees

Suppliers Customers
Business environment

Social environment Industry environment

Economic
Global environment
environment
Social Demographics
Consumer
environment preferences
Industry Condition of
Competition
environment industry
Economic environment

Strength of economy

Inflationary and deflationary environment

Human resources
Global environment

International trade Foreign competition

Business decisions

Management Marketing Finance

Sources of data and information

Accounting Information systems

Management decisions

UTILIZATION OF UTILIZING OTHER

EMPLOYEES RESOURCES.
Marketing decisions

Distribution channel management

Promotion of products
Finance decisions

FINANCING INVESTING DIVIDEND

Thank you!