SOM 122 Chapter Notes - Chapter 1: International Trade, Economic System, Planned Economy
10 Sep 2015
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The concept of business and the concept of profit. Business organization that provides goods or services to earn profits. Profits difference between a business" revenues and its expenses; rewards owns get for risking their money and time. Capitalistic system businesses exist to earn profits for owners. Consumers have freedom of choice businesses must take into account what consumers want or need (demand) Enterprising businesspeople spot a promising opportunity, develop a good plan for capitalizing on it. Produce most of the goods and services, employ most working people, create new innovations, provide opportunities, contributes to the quality of life & standard of living. Enhance the personal incomes of millions of owners and stockholders, business taxes help to support governments at all levels. Harm the environment, unacceptable practices for own personal benefit. External environment everything outside an organization"s boundaries that might affect it; determines the success/failure of any organization.
