6 Questions
A corporation is a business owned and operated by one individual.
False
The primary objective of a non-profit organization is to earn a profit.
False
The internal environment of a business refers to external factors such as competitors and government.
False
Studying business helps to develop skills in management, marketing, finance, and accounting.
True
Economic objectives of a business are to contribute to the well-being of society and protect the environment.
False
A partnership is a business owned and operated by one individual.
False
Study Notes
What is Business?
- Business refers to the exchange of goods, services, or something of value between businesses, organizations, or individuals.
- It involves the creation, distribution, and exchange of goods and services to satisfy the needs and wants of customers.
Types of Businesses
- Sole Proprietorship: A business owned and operated by one individual.
- Partnership: A business owned and operated by two or more individuals.
- Corporation: A business owned by shareholders who elect a board of directors to oversee the company.
- Non-Profit Organization: A business that operates for a purpose other than profit, such as charities, hospitals, and educational institutions.
Business Objectives
- Economic Objectives: To earn a profit, maximize wealth, and create value for shareholders.
- Social Objectives: To contribute to the well-being of society, protect the environment, and promote social welfare.
- Human Objectives: To provide job satisfaction, personal growth, and a sense of accomplishment for employees.
Business Environment
- Internal Environment: Factors within the business, such as employees, management, and resources.
- External Environment: Factors outside the business, such as competitors, customers, government, and technology.
Why Study Business?
- To understand how businesses operate and make decisions.
- To develop skills in management, marketing, finance, and accounting.
- To appreciate the role of business in society and its impact on the economy.
Definition of Business
- Business refers to the exchange of goods, services, or something of value between businesses, organizations, or individuals.
- It involves the creation, distribution, and exchange of goods and services to satisfy the needs and wants of customers.
Types of Business Ownership
- Sole Proprietorship: A single individual owns and operates the business.
- Partnership: Two or more individuals own and operate the business.
- Corporation: Shareholders own the business, and a board of directors oversees the company.
- Non-Profit Organization: A business that operates for a purpose other than profit, such as charities, hospitals, and educational institutions.
Business Objectives
Economic Objectives
- Earn a profit
- Maximize wealth
- Create value for shareholders
Social Objectives
- Contribute to the well-being of society
- Protect the environment
- Promote social welfare
Human Objectives
- Provide job satisfaction
- Personal growth
- Sense of accomplishment for employees
Business Environment
Internal Environment
- Factors within the business
- Employees
- Management
- Resources
External Environment
- Factors outside the business
- Competitors
- Customers
- Government
- Technology
Importance of Studying Business
- Understand how businesses operate and make decisions
- Develop skills in management, marketing, finance, and accounting
- Appreciate the role of business in society and its impact on the economy
Learn the basics of business, including the definition, types, and characteristics of businesses. Discover the different forms of business ownership, such as sole proprietorship, partnership, and corporation.
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