Business Basics * Basic Business Concepts * The Aim and Objectives of Business * The Location of Business * Types of Business

Basic Concepts of Business

Transactions – business is based on transactions: example a sale occurs after an agreement on value – it is referred to as a transaction

Turnover -

Net Profit = revenue – total costs

Product or Services – business earns revenue by selling a product or a service

Capital: money used by business to pay for plant, machinery, buildings etc enable a business to begin or continue in business

What is Business?

* Part-time cleaner ,multi-national companies, Nationalised industries * Share common characteristics * Aims and objectives * Use resources * A process for decision making * Accountable * Subjects to external constraints

Definitions * Business Organised effort of individuals to produce and sell, for a profit, products and services that satisfy society’s needs * e-Business Organised effort of individuals to produce and sell, for a profit, products and services that satisfy society’s needs via computer networks including the Internet take for granted that business today involves e-Business * e-commerce

Stakeholders

Any person or party who has an interest in the business, however tenuous that interest might be * Example:

The Aim and Objectives of Business

Aims - Principles by which an organization is run

Aim – broad, no time scale * Maximising Profits * Survival, reward to owner, future. * Maximising Sales – market share * Maximising Share Price * Providing a Service * Maximising employee welfare – co-operatives * Survival e.g Football clubs * Social and community e.g Body shop, Oxfam, co-operatives.

Quantitative virus Qualitative

Quantitative