Introduction to Business Concepts

Study Notes

Individuals or organizations that attempt to earn a profit by providing products that meet consumer needs.
Products are goods or services that provide satisfaction and benefits to the consumer.
Tangible products can be goods such as an automobile or a computer, while intangible products can be services like dry cleaning or a doctor's checkup.

To earn a profit; the difference between what it costs to make and sell a product and what a customer pays for it.
Earning a profit allows businesses to provide employment, which in turn supports economic development.

Organizations that provide goods and services for the benefit of others but do not aim to earn a profit.
Instead of profit, these organizations use any generated revenue to support their mission and cover operating costs.

Stakeholders are groups that have an interest in a business's success, including customers, employees, investors, and the community.
Businesses must focus on producing quality products, operating efficiently, and being socially responsible toward stakeholders to achieve and maintain profitability.

Economics is the study of how societies allocate resources to produce goods and services.

Communism: A system where the people collectively own all resources in the nation, but in practice, has resulted in low standards of living, shortages of consumer goods, high prices, corruption, and limited freedom.
Socialism: A system where the government owns and operates some basic industries, but it is still important for private businesses to exist in a socialist system.
Capitalism: A system where individuals own most businesses, allowing for competition and entrepreneurship, leading to greater economic growth and improved living standards for citizens.
Mixed Economies: These systems are a blend of capitalism and socialism; most modern nations have a mixed economy, where government plays a role in regulating the economy.