FIN 305 Lecture 2: WEEK 2
25 May 2016
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Document Summary
Describes a business from an operating and strategic perspective. An entity is an organization of people and other resources assembled to achieve a purpose by conducting various activities to produce and sell goods/services to a market. Acquires resources and financing for them, and undertakes activities with the intention or expectation of an economic gain/profit. Has a life independent of its owners/managers and is usually expected to continue indefinitely. Accounting for financing and managing a business entity means for that particular entity only; no other entity and the stakeholders it deals with. From a strategic perspective, a business is organized and managed to achieve 3 fundamental things. To satisfy a particular need of a market by providing something of perceived value that could be goods/services/info by solving a problem or creating an opportunity. To survive, sustain itself, and grow; if not paid attention to, a business may lose an opportunity to achieve its mission.
