Foundations of Business

The Basics

©William Klinger. This work is licensed under a Creative Commons Attribution 4.0 license  1
Adapted from Fundamentals of Business  Download this book for free at: https://vtechworks.lib.vt.edu/handle/10919/84848
 Learning Objectives
• Describe the concept of stakeholders and
stakeholder groups

• Discuss and apply the macro-business-

environment model

• Explain other key terms including:

entrepreneur, profit, revenue.

Adapted from Fundamentals of Business  Download this book for free at: ttp://hdl.handle.net/10919/70961
 Business
• Provides goods and services to
consumers for the purpose of making a
profit
– Revenue = income
– Profit = revenue – expenses
• Entrepreneurs – people who take
business risk
• Profit – the reward for taking risk
 Business Participants
• Stakeholders
– Shareholders
– Employees
– Customers
– Suppliers
– Others

Photo CC BY 4.0. Retrieved from: https://commons.wikimedia.org/wiki/Category:Figures_from_Fundamentals_of_Business_by_Skripak

 Functional Areas of Business
• Management
• Operations
• Marketing
• Accounting
• Finance
• Legal
• Human Resources

Photo CC BY 4.0. Retrieved from: https://commons.wikimedia.org/wiki/Category:Figures_from_Fundamentals_of_Business_by_Skripak

 Macro Environment

Adapted from Fundamentals of Business  Download this book for free at: ttp://hdl.handle.net/10919/70961
7
 Key Take-Aways
• Main participants business are owners,
employees, and customers.
• Stakeholders sometimes have conflicting
interests.
• A business can be divided into functional
areas
• Businesses are influenced by many external
factors.