Introduction of Business
January 27, 2013
Business is a pattern of complex operations in the lives of people concerning all those functions that govern the production, distribution, and the sale of goods and services for the benefit of the buyer and the profit of the seller (Funk & Wagnalls, 1993). Entrepreneurs who start and manage businesses do so for successful profits. In any capitalist economy, businesses play an important role. Businesses are the major providers of employment, goods and services, and as a result of supply and demand, the major drivers of economic growth in an economy. When significant usage of the factors of production such as natural resources, capital, human resources, and entrepreneurship is achieved to their maximum objectives, more profits are made (McGowan, 2012). Therefore, an increase in capital is made from each business for the economy. This process enriches and stimulates the economy with a better standard of living for its people in the nation. Businesses provide people with more opportunities, choices, and freedoms to enjoy their lives without having to produce all goods and services on their own like growing on own food or making our own clothes. The role that business plays in the economy consists of a multitude of things. There must be a market in which allows buyers and sellers to discover information about one another to complete voluntary exchanges of goods and services. Second, the business needs to trade or offer something of economic value such as a good, service, information or money exchanged between two entities. Business is the management and coordination of individuals and resources to accomplish certain production goals, usually for the purpose of making a profit. The combination of these three intricate parts of business within the economy, the consumer will experience an increased standard of living.