Lesson 1

Business - A business is an active process which is an integral part of human

society. It is organization where economic resources or inputs, such as materials
and services, are brought togetherand distributed to deliver or to give consumers
goods, products, or inputs. It involves significant operation such as buying,
assembling, distributing, advertising, selling, and accounting.

Profit - Profit refers to the difference between the amount spent on something
purchased, produced, or manufactured.

Three types of business organizations

Services Business - Provide services to customers rather than products.

Merchandising Business - Sell to customers products they buy from others

businesses.

Manufacturing Business - Turn basic inputs into products which are sold to
consumers.

Form of Business Organization

• Sole Proprietorship - is a business that can be owned and controlled by an

individual, a company or a limited liability partnership.

• Partnership - in business is a formal agreement made by two or more parties to

jointly manage and operate a company

• Corporation - is a legal entity created by individuals, stockholders, or

shareholders, with the purpose of operating for profit.