Introduction To Business

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What Is a Business?
Introduction to
Business
The Business Environment
Trends in American Business
Introduction to Entrepreneurship
Learning Business Topics
Introduction to Business
Introduction to Business > What Is a Business?
What Is a Business?
• The Goals of a Business
• Benefits of Organization
• Addressing Market Needs
• Profit and Value
• Profit and Stakeholders
• The Role of the Nonprofit
www.boundless.com/business/textbooks/boundless-business-textbook/introduction-to-business-1/what-is-a-business-22/
Introduction to Business > The Business Environment
The Business Environment

• The State of the Economy
• The State of Technology
• The State of Competition
• The Social Environment
• The State of Global Business
www.boundless.com/business/textbooks/boundless-business-textbook/introduction-to-business-1/the-business-environment-23/
Introduction to Business > Trends in American Business
Trends in American Business

• Productivity Gains in Agriculture
• Productivity Gains in Manufacturing
• Productivity Gains from Technology
• Service Economy Growth
www.boundless.com/business/textbooks/boundless-business-textbook/introduction-to-business-1/trends-in-american-business-24/
Introduction to Business > Introduction to Entrepreneurship
Introduction to Entrepreneurship
• The Goals of Entrepreneurs
• Benefits of a Small Organization
• Entrepreneurship and the Economy
www.boundless.com/business/textbooks/boundless-business-textbook/introduction-to-business-1/introduction-to-entrepreneurship-25/
Introduction to Business > Learning Business Topics
Learning Business Topics

• Context and Current Events
• Business Cases and Examples
• Application of Knowledge
www.boundless.com/business/textbooks/boundless-business-textbook/introduction-to-business-1/learning-business-topics-26/
Appendix
Key terms
• agriculture The art or science of cultivating the ground, including the harvesting of crops, and the rearing and management of
livestock; tillage; husbandry; farming.
• automation The act or process of converting the controlling of a machine or device to a more automatic system, such as
computer or electronic controls.
• bureaucracy Structure and regulations in place to control activity. Usually in large organizations and government operations.
• business environment the system within which companies exist
• business model The particular way in which a business organization ensures that it generates income, one that includes the
choice of offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and
policies.
• case method A teaching approach that consists of presenting the students with a case, and putting them in the role of a
decision-maker facing a problem.
• case study An intensive analysis of an individual unit (e.g., a person, group, or event) stressing developmental factors in
relation to context; also called a case report.
• corporate social responsibility (CSR) A company’s sense of responsibility towards the community and environment (both
ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction
processes, (2) by contributing educational and social programs and (3) by earning adequate returns on the employed
resources.
• corporation A group of individuals, created by law or under authority of law, having a independent of the existences of its
members, and powers and liabilities distinct from those of its members.
• creative destruction Refers to the linked processes of the accumulation and annihilation of wealth under capitalism.
• critical thinking The application of logical principles, rigorous standards of evidence, and careful reasoning to the analysis and
discussion of claims, beliefs, and issues.
• debriefing The report of a mission or project, or the information so obtained.
• debt Money that one person or entity owes or is required to pay to another, generally as a result of a loan or other financial
transaction.
• demand The desire to purchase goods or services, coupled with the power to do so, at a particular price.
• dilemma A circumstance in which a choice must be made between two or more alternatives that seem equally undesirable.
• disruptive innovation An innovation which redefines an existing market and value network, often through the creation or
utilization of new technologies or processes.
• distribution The process by which goods get to final consumers over a geographical market, including storing, selling, shipping,
and advertising.
• dividend A pro rata payment of money by a company to its shareholders, usually made periodically (e.g., quarterly or annually).
• efficiency The extent to which time is well used for the intended task.
• electromagnetism A unified fundamental force that combines the aspects of electricity and magnetism and is one of the four
fundamental forces. (technically it can be unified with weak nuclear to form electroweak) Its gauge boson is the photon.
• employment The work or occupation for which one is used, and often paid.
• entrepreneur A person who organizes and operates a business venture and assumes much of the associated risk.
• fiduciary Related to trusts and trustees.

• fiduciary duty A legal or ethical relationship of confidence or trust between two or more parties. Typically, a fiduciary prudently
takes care of money for another person.
• foreclosure The proceeding, by a creditor, to regain property or other collateral following a default on mortgage payments.
• free market Any market in which trade is unregulated; an economic system free from government intervention.
• game theory A branch of applied mathematics that studies strategic situations in which individuals or organisations choose
various actions in an attempt to maximize their returns.
• GDP Or gross domestic product, this economic indicator measures the total amount of products and services produced over a
specific time frame.
• intellectual property Any product of someone's intellect that has commercial value: copyrights, patents, trademarks, and trade
secrets.
• internal combustion The process where fuel is burned within an engine such as a diesel engine, producing power directly as
opposed to externally such as in a steam engine.
• internet The Internet, the largest global internet.
• intra-preneurship When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-
preneurship.
• IT strategies The objectives, principles, and tactics involved in an organization's approach to managing current and potential
changes in technology.
• jurisdiction The limits or territory within which authority may be exercised.
• manufacture The action or process of making goods systematically or on a large scale.

• Market Markets vary in form, scale, location, and types of participants, as well as the types of goods and services traded.
• microeconomics the study small-scale financial activities such as that of the individual or company
• pasteurize To heat food for the purpose of killing harmful organisms, such as bacteria, viruses, protozoa, molds, and yeasts.
• product Any tangible or intangible good or service that is a result of a process and that is intended for delivery to a customer or
end user.
• productivity Productivity is a measure of the efficiency of production and is defined as total output per one unit of a total input.
• resource Something that one uses to achieve an objective. An examples of a resource could be a raw material or an employee.
• revolution A sudden, vast change in a situation, a discipline, or the way of thinking and behaving.
• Scarcity The condition of something being scarce or deficient.
• self-directed Directed independently by oneself without external control or constraint.
• seniority A measure of the amount of time a person has been a member of an organization, as compared to other members,
and with an eye towards awarding privileges to those who have been members longer.
• services That which is produced, then traded, bought or sold, then finally consumed and consists of an action or work.
• simulation Something which simulates a system or environment in order to predict actual behavior.
• stakeholder A person or organization with a legitimate interest in a given situation, action, or enterprise.
• startup a new organization or business venture
• stockholder One who owns stock.
• workshop A brief intensive course of education for a small group; emphasizes interaction and practical problem solving
Entrepreneurship history
Notable persons and their works in entrepreneurship history. Figure created by Mikko Ohtamaa.
Wikipedia. "Entrepreneurship history." CC BY-SA http://en.wikipedia.org/wiki/File:Entrepreneurship_history.png View on Boundless.com
Business Game
Business game (also called business simulation game) refers to simulation games that are used as an educational tool for teaching business.
Geograph. "Retail closure - "Game" in Fargate,... (C) David Hawgood :: Geograph Britain and Ireland." CC BY http://www.geograph.org.uk/photo/2883144 View on
Boundless.com
Current Issues
Accountants must stay up to date with current issues in reporting and disclosure.
Wikipedia. "File:Newspaper.svg - Wikipedia, the free encyclopedia." Public domain http://en.wikipedia.org/w/index.php?title=File:Newspaper.svg&page=1 View on
Boundless.com
Business Case Discussion

A lot can be learned from the contents of a business case.
Flickr. "Business Class | Flickr - Photo Sharing!." CC BY http://www.flickr.com/photos/tulanesally/4307044660/ View on Boundless.com
Profit and Value

Profit is equal to a firm's revenue minus its expenses, while value is the present value of the firm's current and future profits.
Flickr. "Profit | Flickr - Photo Sharing!." CC BY-SA http://www.flickr.com/photos/68751915@N05/6551525739/ View on Boundless.com
Intellectual Property
Competition in regard to intellectual property is a growing concern in today's business environment.
Flickr. "Intellectual Property Zone | Flickr - Photo Sharing!." CC BY http://www.flickr.com/photos/46183897@N00/2574549499/ View on Boundless.com
Organization
Any organization -- in this case, a professional society -- employs the function of organizing to achieve its overall goals.
Wikimedia. "Organization." CC BY-SA http://commons.wikimedia.org/wiki/File:Organization.png View on Boundless.com
Hospital equipment
Health care is part of the service economy
Wikimedia. "Intensivstation (01) 2007-03-03." CC BY-SA http://commons.wikimedia.org/wiki/File:Intensivstation_(01)_2007-03-03.jpg View on Boundless.com
Startup financing cycle

Diagram of the typical financing cycle for a startup company
Wikimedia. "Startup diagram." CC BY-SA http://upload.wikimedia.org/wikipedia/commons/8/8e/Startup_financing_cycle.svg View on Boundless.com
The Circular Flow of Business and the Economy

Refers to a simple economic model which describes the reciprocal circulation of business and the global economy.
Saylor. "Diagram." CC BY http://www.saylor.org/site/wp-content/uploads/2012/05/Bus101-Book-May2011.pdf View on Boundless.com
Start-up financing cycle

Diagram of the typical financing cycle for a start-up company.
Wikipedia. "Startup financing cycle." CC BY-SA http://en.wikipedia.org/wiki/File:Startup_financing_cycle.svg View on Boundless.com
Profit Maximization
This chart depicts profit maximization using the totals approach, where TR = Total Revenue and TC = Total Cost. The profit-maximizing output level is
represented as the one at which total revenue is the height of C and total cost is the height of B; the maximal profit is measured as CB.
Wikimedia. "Profit max total small." CC BY-SA http://commons.wikimedia.org/wiki/File:Profit_max_total_small.svg View on Boundless.com
Disruptive Innovation
Disruptive innovations rapidly improve the overall performance (fulfillment of the user's needs) in a fraction of the time normally required to improve
organically through efficiency. Netflix disrupted the movie and TV market through rapidly improving the experience in a short amount of time. This is a
great opportunity for business, as well as a great threat.
Wikipedia. "Disruptivetechnology.png." CC BY-SA 3.0 https://upload.wikimedia.org/wikipedia/commons/c/c4/Disruptivetechnology.png View on Boundless.com
CSR diagram
This diagram shows the different components of CSR.
OpenStax CNX. "Global Text Project, International Business for Entrepreneurs: Corporate Social Responsibility and Sustainable Development in the Global
Environment. January 16, 2015." CC BY 3.0 http://cnx.org/content/m35612/latest/ View on Boundless.com
2014 U.S. Exports

This is a graphic diagram depicting the most common U.S. exports, including a number of manufactured goods.
Wikimedia Commons. "2014_United_States_Products_Export_Treemap.png." CC BY-SA 3.0
https://upload.wikimedia.org/wikipedia/commons/3/38/2014_United_States_Products_Export_Treemap.png View on Boundless.com
Total US Manufacturing Employment

This chart illustrates the changes in overall manufacturing employment from the 1940s onward. The peak of manufacturing employment was in the
1980s, though it's worth noting that this is not normalized as a percentage of population (i.e., population growth would impact this assessment).
Wikimedia. "Total_manufacturing_employment.png." CC BY-SA 3.0 https://upload.wikimedia.org/wikipedia/en/b/b6/Total_manufacturing_employment.png View on
Boundless.com
Technology and productivity

Technology has had a profound effect on productivity.
Wikimedia. "Machine-cable." CC BY-SA http://commons.wikimedia.org/wiki/File:Machine-cable.jpg View on Boundless.com
Supply and Demand

This graph depicts where a supply, such as a business, intersects with demand, such as the market need.
Wikimedia. "Simple supply and demand." CC BY-SA http://commons.wikimedia.org/wiki/File:Simple_supply_and_demand.svg View on Boundless.com
US Integration into the global economy

Imports and exports as a % of GDP, 1947-present
State of Working America. "Structural change | State of Working America." CC BY-SA http://stateofworkingamerica.org/economic-landscape/structural-change/
View on Boundless.com
Nonprofit Organizations
U.S. Navy Sailors, assigned to the aircraft carrier USS Ronald Reagan, position a frame of a wall while helping the nonprofit group Habitat for Humanity
build homes.
Wikimedia. "US Navy 040623-N-8977L-010 Sailors assigned to Nimitz-class aircraft carrier USS Ronald Reagan (CVN 76) position a frame of a wall while helping
the non-profit group Habitat for Humanity build homes." CC BY-SA http://commons.wikimedia.org/wiki/File:US_Navy_040623-N-8977L-
Stakeholders
This diagram shows the typical stakeholders of a company.
Wikimedia. "Stakeholder (en)." CC BY-SA http://commons.wikimedia.org/wiki/File:Stakeholder_(en).png View on Boundless.com
Attribution
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Trends in American Business

Learning Business Topics

The Business Environment

Trends in American Business

Learning Business Topics

• fiduciary Related to trusts and trustees.

• manufacture The action or process of making goods systematically or on a large scale.

Business Case Discussion

Profit and Value

Startup financing cycle

The Circular Flow of Business and the Economy

Start-up financing cycle

2014 U.S. Exports

Total US Manufacturing Employment

Technology and productivity

Supply and Demand

US Integration into the global economy

• Wikipedia. "Entrepreneurship." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Entrepreneurship

• Wikipedia. "Beer distribution game." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Beer_distribution_game

• Wikipedia. "Case method." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Case_method

• Wikipedia. "Corporate social responsibility." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Corporate_social_responsibility

• Wiktionary. "startup." CC BY-SA 3.0 http://en.wiktionary.org/wiki/startup

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