Introduction to business

1
 Business

Business: An organization that provides goods or

services to earn profits
 Business
Not for profit organizations

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 Business

The organized efforts of individual and

groups to produce and sell for a profit, the
goods and services that satisfy society’s
need.
 Business

The organized efforts of individual and

groups to produce and sell for a profit, the
goods and services that satisfy society’s
need.
Profits—rewards for businesspeople who take the
risks involved to offer goods and services to
customers.
 Business

Profits—rewards for businesspeople who take

the risks involved to offer goods and services to
customers.
 Business

The organized efforts of individual and

group to produce and sell for a profit, the
goods and services that satisfy society’s
need.
 Business

The organized efforts of individual and

group to produce and sell for a profit, the
goods and services that satisfy society’s
need.
 Activities excluded from business

Social
Social Services
Services Activities
Activities
–– Hospital,
Hospital, University,
University, Library,
Library, NGO’s
NGO’s
Personal
Personal Consumption
Consumption Activities
Activities
–– Show
Show maker
maker makes
makes own
own shoes
shoes
–– Doctor
Doctor give
give treatment
treatment to
to own
own children
children
Illegal
Illegal Activities
Activities
–– Smuggling,
Smuggling, Gambling
Gambling
 The Private Enterprise System

• Economic system that rewards businesses

for their ability to perceive and serve the
needs and demands of customers.

– Competition—battle among businesses for

consumer acceptance

1-14
 Basic Rights in the Private
Enterprise System

1-15
 Business

Inputs

Natural Resources
Capital
Human Resource 17
Entrepreneur/Organization
 Factors of Production
• Four basic inputs for effective operation:

1-18
 Business

Political Economics
Economic Cultural
Environment
Micro and Macro Level

Process / Transformation

Produc- Manage- Marke-

Inputs Finance
tion ment ting
HRM Output

Natural Resources Goods

Capital Services
Human Resource 19
Entrepreneur/Organization
 Characteristics of Business

1.
1. Entrepreneur
Entrepreneur
2.
2. Deals
Deals in
in goods
goods and
and services
services
3.
3. Economic
EconomicActivities
Activities
4.
4. Series
Series of
of deals
deals
5.
5. Profit
Profit
6.
6. Element
Element ofof risk
risk and
and uncertainty
uncertainty
7.
7. Capital
Capital
 Characteristics of Business

1.
1. Entrepreneur
Entrepreneur
For
For establishing
establishing aa business,
business, there
there must
must be
be some
some one
one to
to
take
take the
the initiative.
initiative. The
The entrepreneur
entrepreneur visualizes
visualizes aa
business,
business, combines
combines various
various factors
factors of
of production
production andand put
put
them
them into
into going
going concern
concern
2.
2. Deals
Deals in
in goods
goods and
and services
services
3.
3. Economic
EconomicActivities
Activities
4.
4. Series
Series of
of deals
deals
5.
5. Profit
Profit
6.
6. Element
Element ofof risk
risk and
and uncertainty
uncertainty
7.
7. Capital
Capital