Business Definition and Functions

Study Notes

A business is an organization that seeks to provide goods and services to customers in exchange for revenue.
Businesses can be for-profit or non-profit, and can take various forms such as sole proprietorships, partnerships, corporations, and cooperatives.

Management: Planning, organizing, leading, and controlling the organization to achieve its goals.
Marketing: Identifying and meeting customer needs, creating and promoting products, and exchanging them for revenue.
Finance: Acquiring and managing the financial resources needed to operate the business.
Operations: Producing and delivering the goods and services offered by the business.
Human Resources: Recruiting, training, and managing the people who work for the business.

Internal Environment: The internal factors that affect the business, such as its resources, culture, and structure.
External Environment: The external factors that affect the business, such as the economy, government policies, technology, and competition.

Service Business: Provides intangible products, such as healthcare, education, and consulting.
Merchandising Business: Buys and sells tangible products, such as retail stores and wholesalers.
Manufacturing Business: Creates tangible products, such as manufacturers of goods.

Entrepreneur: An individual who takes on the risk of starting and running a business.
Intrapreneur: An individual who takes on entrepreneurial roles within an existing organization.

Profit Maximization: The primary goal of most businesses, which involves maximizing revenue while minimizing costs.
Social Responsibility: The obligation of businesses to contribute to the well-being of society and the environment.

Cost Leadership: Focusing on reducing costs to offer lower prices than competitors.
Differentiation: Creating unique products or services to differentiate the business from competitors.
Focus: Focusing on a specific niche or market to specialize in.

A business is an organization that provides goods and services to customers in exchange for revenue, and can be for-profit or non-profit.

Management involves planning, organizing, leading, and controlling the organization to achieve its goals.
Marketing involves identifying and meeting customer needs, creating and promoting products, and exchanging them for revenue.
Finance involves acquiring and managing the financial resources needed to operate the business.
Operations involve producing and delivering the goods and services offered by the business.
Human Resources involves recruiting, training, and managing the people who work for the business.

The internal environment includes internal factors that affect the business, such as its resources, culture, and structure.
The external environment includes external factors that affect the business, such as the economy, government policies, technology, and competition.

A service business provides intangible products, such as healthcare, education, and consulting.
A merchandising business buys and sells tangible products, such as retail stores and wholesalers.
A manufacturing business creates tangible products, such as manufacturers of goods.

An entrepreneur is an individual who takes on the risk of starting and running a business.
An intrapreneur is an individual who takes on entrepreneurial roles within an existing organization.

Profit maximization is the primary goal of most businesses, which involves maximizing revenue while minimizing costs.
Social responsibility is the obligation of businesses to contribute to the well-being of society and the environment.

Cost leadership involves focusing on reducing costs to offer lower prices than competitors.
Differentiation involves creating unique products or services to differentiate the business from competitors.
Focus involves focusing on a specific niche or market to specialize in.