Intro to Business Notes

Intro to Business Notes - Intro to Business Section 1...

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Intro to Business Section 1 17:09 Outline -Economic actors driven by personal gain -Therefore wealth is gained by our society -Resources are efficient -That all is the theory of neoclassical economics -We should not interfere with the economy: laissez-faire economics -Five categories of factors of production (society’s resources): land, labor, capital,  entrepreneurship, and knowledge/info technology -Our economic system is characterized by free choice -Laws of supply and demand- market forces- determine prices -Under perfect competition prices determined by an infinite number of buyers and  sellers so no one affects price -NEVER ideal so in reality there are some varying control and prices change -Structures include monopoly, oligopoly, and monopolistic competition -We measure the health of our nation by gross domestic product, unemployment  inflation, and productivity -Gov gets involved and it affects the ability to control our self interest and  business behavior is constrained The Nature of Business     -Business tries to earn  profit  by providing products that satisfy peoples needs -The outcome of that are  products - both tangible and intangible characteristics  (ex sandwich is tangible and your hunger is intangible)
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-Goal of business=  profit - Profit = the difference between cost to make and sell a product and what a  customer pays for it -To earn a profit people need management skills-to plan, organize and to control  the activities of the business -Need marketing to learn what products consumers need and want  -Gov regulates for ethics and social responsibility -Customers, employees, investors, and government regulators are called  stakeholders - Management : Management involves coordinating employees actions to achieve  the firms goals, organizing people efficiently, and motivating them to achieve the  business’s goals - Marketing:  Marketing and consumers are in the same segment Includes all activities designed to provide goods and services that satisfy  consumers needs and wants Gather info and conduct research to determine what consumers want Use promotion, advertising, personal selling, sales promotion, and publicity-  to communicate the benefits and advantages of their products to consumers  to increase sales - Finance:  Owners and finance are in the same part It is the primary responsibility of the owners to provide financial resources for  the operation of the business Owners have to sometimes borrow money - Why study business?   It can help you develop skills and acquire knowledge to prepare for your future  career Can help you become a well-informed consumer and member of society
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Intro to Business Notes - Intro to Business Section 1...

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