INTRODUCTİON TO BUSİNESS

A business is any organization that provides goods or services to satisfy customers’ needs and wants for a profit.

An entrepreneur is an individual who starts a business and risks losses (in terms of money, time and reputation) for profits. Therefore, profits are the rewards entrepreneurs receive for producing goods and services that consumers want.

An entrepreneur is an individual who starts a business and risks losses (in terms of money, time and reputation) for profits. Therefore, profits are the rewards entrepreneurs receive for producing goods and services that consumers want. Stockholders or shareholders own a part of a company through ownership of a company’s stocks or shares. Owners benefit from profits while shareholders receive dividends.

Keep in mind that other firms are also trying to sell their products and services, often to the same groups of customers. The result is competition among those firms. Competition is the rivalry among businesses for the same resources, customers or markets

Innovation:

With several companies competing to win over customers, a firm can succeed with innovative products. Innovation can come from technology, product modifications or by improving customer experience. Further, firms would need to consistently better themselves and to encourage employees to push themselves also.

Customer Service:

If a product on offer is similar from one firm to the next, each firm is forced to improve customer service to compete.

Education:

Competitors can teach each other about the business, the state of the markets and what does and does not work in the marketplace.

One important characteristic of a business is its type. The differences between them reflect their differing goals and concerns while they would face different kinds of challenges because of differences in business scope. These are; Local business, Regional business, International business and National business. In general, we can define a local business as the ones that serve a limited geographical area and rely on local consumers.

In a typical business, there are five major activities or functions. Human Resources or HR, Marketing and Sales, Production, Manufacturing, or Research and Development, and Finance and Accounting areas.

Economic environment, Technological environment, Market environment, and Social environment

Businesses focus on five essential elements of the factors of production: labor, natural and physical resources, financial capital, entrepreneurship, and information resources.

A shortage is when quantity demanded is larger than quantity supplied.