Business Organization and Environment

Types of Businesses

• Sole Proprietorship: Owned and operated by one individual, unlimited personal liability.
• Partnership: Owned and operated by two or more individuals, shared profits and losses.
• Corporation: Separate legal entity from owners, limited liability, owned by shareholders.

Business Environment

• Micro Environment: Internal factors affecting business, e.g., employees, customers, suppliers.
• Macro Environment: External factors affecting business, e.g., economy, government, technology.

Business Operations

• Production: Creating goods or services, e.g., manufacturing, assembly.
• Marketing: Promoting and selling goods or services, e.g., advertising, sales.
• Finance: Managing financial resources, e.g., budgeting, investing.

Management Functions

• Planning: Setting business objectives, e.g., goal-setting, strategy development.
• Organizing: Allocating resources, e.g., delegation, departmentalization.
• Leading: Directing and motivating employees, e.g., leadership, communication.
• Controlling: Monitoring and correcting business performance, e.g., feedback, evaluation.

Business Ethics

• Social Responsibility: Businesses' obligation to society, e.g., environmental sustainability, community involvement.
• Ethical Decision-Making: Making choices that balance business needs with moral principles, e.g., honesty, fairness.

Globalization and International Business

• Globalization: Increasing global interconnectedness and interdependence.
• International Business: Conducting business across national borders, e.g., exporting, importing, foreign direct investment.

Types of Businesses

• A Sole Proprietorship is a business owned and operated by one individual, with unlimited personal liability, where the owner has complete control and all profits.
• A Partnership is a business owned and operated by two or more individuals, with shared profits and losses, and joint decision-making authority.
• A Corporation is a separate legal entity from its owners, with limited liability, owned by shareholders, and provides benefits such as tax advantages and perpetual existence.

Business Environment

• The Micro Environment includes internal factors that affect a business, such as employees, customers, suppliers, and management, which can be controlled by the business.
• The Macro Environment consists of external factors that affect a business, such as the economy, government, technology, and demographics, which are beyond the control of the business.

Business Operations

• Production involves creating goods or services through processes such as manufacturing, assembly, and quality control, and is a critical function of any business.
• Marketing involves promoting and selling goods or services through advertising, sales, and distribution, to satisfy customer needs and wants.
• Finance involves managing financial resources, including budgeting, investing, and financing, to support business operations and achieve objectives.

Management Functions

• Planning involves setting business objectives, developing strategies, and allocating resources to achieve goals, which helps to direct the business.
• Organizing involves allocating resources, assigning tasks, and structuring the organization to achieve objectives, and involves delegation and departmentalization.
• Leading involves directing and motivating employees, through leadership, communication, and motivation, to achieve business objectives.
• Controlling involves monitoring and correcting business performance, through feedback, evaluation, and corrective action, to ensure goals are met.

Business Ethics

• Social Responsibility involves a business's obligation to society, including environmental sustainability, community involvement, and ethical practices.
• Ethical Decision-Making involves making choices that balance business needs with moral principles, such as honesty, fairness, and respect for stakeholders.

Globalization and International Business

• Globalization involves the increasing global interconnectedness and interdependence of economies, cultures, and societies.
• International Business involves conducting business across national borders, through exporting, importing, foreign direct investment, and other activities.