Chapter 1

Chapter 1 - Chapter 1: 2006 and Beyond I. What is Business...

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2006 and Beyond I. What is Business a. Business: consists of all profit seeking activities and enterprises that provide goods and services necessary to an economic system i. Inside ever business endeavor there is an exchange b/t a buyer and seller buyer: recognizes needs for a good or service/trades money w/ seller to get product seller: participates in process in hopes of gaining profits b. Profits: rewards for business people who take the risks involved to offer goods and services to customers i. Profits serve as incentives for people to start companies, expand them, and provide high quality competitive goods II. Not for Profit Organizations a. Not for Profit Organizations: businesslike establishments that have primary objectives other than returning profits to their owners i. they place public service above profits ii. operate in private/public sectors private sector non profits: include museums, libraries, trade associations, charitable/religious organizations, and colleges/universities employ a great amount of people commonly exempt from paying federal, local, and state taxes III. Factors of Production a. Four basic inputs for operation (natural resources, capital, human resources, and entrepreneurship) i. Natural Resources: all productive inputs in their natural states ex. Agricultural land, building sites, forests, and mineral deposits ii. Capital: includes technology, tools, and physical facilities Technology: refers to machinery and equipment as production lines, telecommunications, and basic inventions; may result in creation of a new product (ex. Omnisonic’s new device that uses sound waves instead of drugs or tools to clear clogged arteries) Technology also helps improve a product (ex. Global positioning satellite systems (GPS) found in automobiles and key in the war in Iraq) Can help companies operate more smoothly a. Ex. Tracking Deliveries, compiling market data, analyzing sales, etc. iii.
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Chapter 1 - Chapter 1: 2006 and Beyond I. What is Business...

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