Part one bs

• Business


  Any economic activity that fulfills human wants with a value addition to the resources
• Business


  • Fulfills the needs and wants of customers
  • Adds value to the resources
• Value addition

  Difference between input value and output value
• Profit is the difference between Sales revenue and production cost
• Business activities (Functions)


  • Production (Operating / Manufacturing)
  • Financial
  • Administration
  • Human resource management
  • Marketing
  • Research and Development
  • Management Information
• Entrepreneurship is not a business function
• Airbus introduced the new A380 aircraft


  As a result of the Research and Development business function
• Composition of business


  • Industry (produce the goods)
  • Commerce (distribute the goods)
  • Tertiary sector (services)
• Trade


  The process of exchanging goods and services among two or more parties for a monetary value
• Auxiliary Services


  All the services that are provided to increase the efficiency of the trading activities
• Common characteristics of Business

  • Involve sale or exchange
  • Goods and services are traded
  • Regular dealings
  • Profit motive
  • Create wants
  • Having a risk
• Needs


  A human need is a state of deprivation of some basic satisfaction, essential to all humans, limited, cannot be created by businesses
• Wants


  Desires for specific satisfiers of these deeper needs, unlimited, vary from person to person, can be created by businesses and social forces
• Demand


  The consumer's desire and ability to purchase a good or service, contains willingness of wants, purchasing power, access to purchase