Introduction to Business Summary
Introduction to Business
Chapter 1 (read summary in book)
Businesses provide goods (tangible) and/or (services) to others while operating at a profit. Entrepreneurs risk time and money to start a business in order to make a profit. Higher risk means higher profit, because of the reduced competition. Businesses contribute to the standard of living (amount of goods and services people can buy with the money they have) and the quality of life (general well-being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure and rewards that add to the satisfaction and joy that other goods and services provide). Businesses provide employment (income, wealth) and tax income; this increases the standard of living in a country. Raising the standard of living may lower the quality of life, for example because of more stress.
Stakeholders are all the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address. For the businesses of the 21st Century it will be a primary challenge to recognize and respond to the needs of their stakeholders. In order to stay competitive outsourcing (contracting other companies to do some/all function of a firm) is done. Loss of jobs is compensated by insourcing.
Nonprofit organizations are organizations whose goals do not include making a personal profit for its owners. They use their profit for social causes. Social entrepreneurs manage these.
The five factors of production, land, labor, capital, entrepreneurship and knowledge, are the resources used to create wealth. The last two are the most important, because the first three don’t add anything without an entrepreneur starting a business and using them. Therefore a healthy business environment (surrounding factors that help or hinder the development of businesses) is important for a country, the foundation for social benefits. The five elements in the business
Chapter 1 (read summary in book)
Businesses provide goods (tangible) and/or (services) to others while operating at a profit. Entrepreneurs risk time and money to start a business in order to make a profit. Higher risk means higher profit, because of the reduced competition. Businesses contribute to the standard of living (amount of goods and services people can buy with the money they have) and the quality of life (general well-being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure and rewards that add to the satisfaction and joy that other goods and services provide). Businesses provide employment (income, wealth) and tax income; this increases the standard of living in a country. Raising the standard of living may lower the quality of life, for example because of more stress.
Stakeholders are all the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address. For the businesses of the 21st Century it will be a primary challenge to recognize and respond to the needs of their stakeholders. In order to stay competitive outsourcing (contracting other companies to do some/all function of a firm) is done. Loss of jobs is compensated by insourcing.
Nonprofit organizations are organizations whose goals do not include making a personal profit for its owners. They use their profit for social causes. Social entrepreneurs manage these.
The five factors of production, land, labor, capital, entrepreneurship and knowledge, are the resources used to create wealth. The last two are the most important, because the first three don’t add anything without an entrepreneur starting a business and using them. Therefore a healthy business environment (surrounding factors that help or hinder the development of businesses) is important for a country, the foundation for social benefits. The five elements in the business