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Bus 201 Note

The document defines business as an organization that produces and distributes goods and services to meet human needs, highlighting its characteristics such as economic activity, profit motive, and innovation. It discusses the importance and purpose of business, emphasizing its role in economic growth, wealth creation, and social responsibility. Additionally, it outlines the organic functions of business, the concept of multinational corporations, and the significance of essential goods and services for everyday life.

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7 views5 pages

Bus 201 Note

The document defines business as an organization that produces and distributes goods and services to meet human needs, highlighting its characteristics such as economic activity, profit motive, and innovation. It discusses the importance and purpose of business, emphasizing its role in economic growth, wealth creation, and social responsibility. Additionally, it outlines the organic functions of business, the concept of multinational corporations, and the significance of essential goods and services for everyday life.

Uploaded by

debrajensen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Bus 201 Answer

1. Meaning of business and it characteristics


Business refers to an organization or economic system
that produces and distributes goods and services
to satisfy human needs and wants. It involves the
exchange of goods, services, and ideas in return for
money, and is a vital part of a country's economy.

The main characteristics of business are:

• *Economic activity*: Business involves the


production and distribution of goods and services
to earn a profit.
• *Production of goods and services*: Businesses
create goods and services to meet the needs of
customers.
• *Profit motive*: The primary goal of business is to
earn a profit.
• *Exchange of goods and services*: Business
involves the exchange of goods, services, and ideas
in return for money.
• *Uncertainty and risk*: Businesses operate in an
uncertain environment and face various risks
• *Organization*: Businesses are organized entities
with a structure and management.
• *Innovation*: Businesses continually innovate
and improve their products, services, and
processes.
• *Social responsibility*: Businesses have a
responsibility to society and the environment.
• *Competition*: Businesses operate in a competitive
environment, competing with other businesses for
customers and market share.
• *Dynamic*: Businesses are dynamic and adapt
to changing market conditions, consumer
preferences, and technological advancements.
2. Important and purpose of business,

*Importance:*

• *Economic growth*: Businesses drive economic


growth by creating jobs, producing goods and
services, and generating revenue.
• *Innovation*: Businesses encourage innovation,
leading to new products, services, and processes
that improve people's lives.
• *Wealth creation*: Businesses create wealth for
owners, employees, and shareholders, improving
their standard of living.
• *Social impact*: Businesses can positively impact
society by addressing social and environmental
issues.
• *Competition*: Businesses foster competition,
leading to better products, services, and prices for
consumers.

*Purpose:*

• *To create value*: Businesses aim to create value


for customers, employees, and society.
• *To satisfy needs*: Businesses produce goods and
services to satisfy human needs and wants.
• *To make a profit*: Businesses aim to earn a
profit, which is essential for survival and growth.
• *To innovate and improve*: Businesses strive to
innovate and improve products, services, and
processes.
• *To contribute to society*: Businesses have a
responsibility to contribute to society and the
environment.

3. Organic functions of business.


The organic functions of business refer to the
essential activities that a business must perform to
survive and thrive.

• _Production_: Creating goods or services to meet


customer needs.
• _Marketing_: Identifying customer needs and
promoting products or services to meet those
needs.
• Finance_: Managing funds to support business
operations and growth.
• Human Resources_: Recruiting, training, and
managing employees to perform business
activities.
• Research and Development_: Innovating and
improving products, services, and processes.
• Operations Management_: Overseeing the
production and delivery of goods and services.
• Accounting_: Recording, classifying, and
reporting financial transactions and
performance.
• Management_: Planning, organizing, leading, and
controlling business activities.

4. Multinational corporation
A multinational corporation (MNC) is a company that
has business operations in at least one country other
than its home country and generates revenue outside
of its home country

5. Essential goods and essential services.


Essential goods and essential services are products
and services that are necessary for everyday life and
the well-being of citizens. These goods and services
are typically considered essential because they:

Examples of essential goods include:


- Food and beverages
- Water and sanitation supplies
- Medical supplies and equipment
- Fuel and energy sources
- Clothing and personal care items
- Household necessities (e.g., soap, toilet paper)

Examples of essential services include:

- Healthcare and medical services


- Emergency services (e.g., police, fire, ambulance)
- Utilities (e.g., electricity, gas, water)
- Transportation (e.g., public transit, taxis)
- Communication services (e.g., phone, internet)
- Financial services (e.g., banks, ATMs)
- Social services (e.g., welfare, counseling)
- Education and childcare services

Last modified: 10:48 AM

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