Date post: | 23-Jan-2018 |
Category: |
Business |
Upload: | rakibul-islam |
View: | 175 times |
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Definition of business
• Business: profit and non-profit seeking activities of those engaged in purchasing or selling goods and services to satisfy society’s needs and wants.
What is business?
• Activity seeking profit
• Provides goods/services
• Satisfy standard of living- quality of life [..Higher in
USA, Germany & Japan]
• Nonprofit organizations
Non-Profit Organization
• Not-for-profit organizations: businesslike establishments that have primary objectives other than returning profits to their owners
Evolution of Business
Early economyThe industrial
revolutionThe manufacturing& marketing services
The Service &
Internet-based
Economy
Revenue, Profit and loss
Revenue -- The total amount of money a business takes in during
a given period by selling goods and services.
Profit -- The amount of money a business earns above and
beyond what it spends for salaries and other expenses.
Loss -- Occurs when a business’ expenses are more than its
revenues
Need and Needs satisfaction
• The multiplicity of human needs
o Humans have a wide range of unlimited physical and psychological needs to satisfy
o Range from the most basic need for food to the need for self esteem
o Society has limited resources to satisfy needs:
• Natural resources
• Human resources
• Capital
• Entrepreneurship