Saturday, 23 August 2014

Introduction to Business- Topic 1 & 2

Introduction to business


Definition of business
  • A legally-recognized organization which have profit making motive.
  • “Non-profit organizations” are businesses without a profit making motive.
Capitalism/Free Market
  • Consumers have freedom of choice.
  • Constantly competing with others to gain more customers and profits.
  • A planned economy relies on the government to produce the goods and services for its citizens.
  • Businesses provide some vital contributions or functions to the society.

  1. Goods and services
  2. Employment
  3. Pays tax to the government
  4. Provide opportunities for other businesses to serve as its suppliers.

  • Goods-producing businesses 
  • Service business
  • Consumer products
  • Mining
  • Construction
  • Manufacturing
  • Agriculture
Examples of service business:
  • Banking & insurance
  • Transportation
  • Utilities  
  • Wholesale and retail trade
  • Entertainment, healthcare, education.
External environment of business
  • Domestic Business Environment
  • Global Biz Environment
  • Technology 
  • Economic Environment
  • Sociocultural Environment
  • Politic and Legal Environment
The Small Business & Its Characteristics
  • Business owned by one to several persons.
  • Operates on a small amount of capital and serves a limited number of customers
  • Most  of them are in the service industry because it requires less capital.
  • They serve as distributors of products for the big businesses
  •  Provide innovations and/or serve niche markets.
  • Limited growth potential.
How to start a business?
  • Start from scratch
  • Buy an existing business
  • Franchising
Types of Legal ownership:
  • Sole traders
  • Partnership
  • Corporation


Since we missed the first two lecture, I compiled the things I learned through the slides in one post. I learned that there are two categories for business which is goods-producing business and service business. Besides that, there are also business which are not earning profit such as WWF. I also learned that although all companies are businesses, not all businesses are companies. To be a sucessful business owner, To become a successful business owner, you must have strong reasons and the right qualities to tackle the problems you face in business effectively.

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