Introduction to Business Concepts

The components of a business based on different activities are manufacturing, trading, and exchange of services.

The key features of a business are: buying and selling, use of money as a medium of exchange, capital to start, profit motive, regularity, risk, competition, generating employment, and creating utility/satisfaction for customers.

The tertiary industry involves providing services such as transportation, education, hospitality, legal services, and healthcare.

The main goal of an entrepreneur is adding value to customers and creating value.

Wholesale trade involves taking goods in larger quantities from producers and selling to retailers, while retail trade involves taking goods from wholesalers or directly from producers and selling to final consumers.

The different types of industries mentioned are primary (extraction of raw materials), secondary (manufacturing and construction), tertiary (services), and quaternary (virtual services using technology).

The main purpose of a business is to make a profit through lawful economic activity that utilizes limited resources efficiently.

All consumers are customers, but not all customers are consumers. Consumers are the end-users of a product or service, while customers are those who purchase the product or service, which may include both consumers and other businesses.

Revenue is the total money or income of the business, while expenses are the costs of goods and services. Profit is the positive difference between revenue and expenses, while a loss is the negative difference.

The two types of stakeholders in a business are primary stakeholders and secondary stakeholders. Primary stakeholders have a direct interest in the business, while secondary stakeholders have an indirect interest.

Capital refers to all the investments made by the owner of the business, while liability is an obligation of the business that will be repaid in the future in the form of cash, goods, services, or other assets.