SOM 122 Chapter Notes - Chapter 1: Business Cycle, Complete Control, Federal Reserve System
6 Sep 2016
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Business- organizations that provide goods or services that are then sold to earn profits. Prospect of earning profits is what encourages people to open and expand business. Profits- the difference between a business"s revenues and its expenses. Is what distinguishes a business from organization. Owner is free to set up a new business. Must take into account what consumers want or need. Won"t survive if no demand for its goods or services. Enterprising business people can succeed when- spot promising opportunity and then developing a good plan for capitalizing on it. Business opportunity involved goods or services that consumers need or want- especially if no one else is supplying the or if existing businesses are doing so inefficiently or incompletely. Produce most of the goods and services. External environment: everything outside an organization"s boundaries that might affect it. Domestic business environment- environment in which a firm conducts its operations and derives its revenues.
