Business Definition and Knowledge

Is any activity that involves the sale and purchase of goods or services between the seller and the buyer to meet the needs and desires of consumers and involve the exchange of value for profit. So basically there is a business purpose; activities of production and sale of goods and services, second what the user wants and profitable motive. 

 

Four Basic Business Concepts That You Need To Know 

1.Goods And Services

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– goods are physical products such as vehicles, food, clothing and so on.

– services are activities that help and benefit businesses such as transportation services, insurance, tourism and so on.

– these goods and services are provided and offered to meet human wants and needs.

 

2. Satisfy The Needs And Wants Of Customers

-this needs refers to the basic items that humans need for human life such as shelter, food, clothing etc.

-willing refers to the unrestricted use of goods for the convenience of life such as entertainment, home appliances etc.

-to achieve profit, businesses need to offer goods and services that can meet and satisfy the needs and wants of customers.

 

3. Exchange Of Values

– refers to the transfer of goods and services from a business to a customer.

– goods and services will be valued at a certain amount of value by the trader usually in monetary value.

– this process of buying and selling will involve a silent agreement between the seller and the buyer.

 

4. Business Profits

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– profit is the main goal of all businesses.

-profit is the net result from the sale of goods or services after deducting production costs, operating costs, taxes and other costs involved.

– profit is the yardstick of success and reward for a business that is able to compete in the market.

 

What Are Entrepreneur Responsibilities? 

– Produce goods and services to meet the needs and wants of consumers

– Distribute and the exceptional goods and services needed to reach the hands of consumers at reasonable the most suitable prices and costs, the quantity desired by consumers and on time.

– Provide quality goods and are safe to use by consumers.

– Ensure that the goods and services provided are always sufficient to meet the needs of consumers.

 

There are Two Types; Business And Non-Business

 

Profitable business (see business definition), business examples: Proton, KFC, Petronas etc.

Apart from profit, other objectives are:

  1. Survival- to continue operating in the market.
  2. Growth- to develop/expand the company such as opening several branches.

iii. Social responsibility-commitment by the company to pay attention to public needs/welfare such as controlling environmental pollution

 

Why Business Is Important 

Firstly, we need to understand that business is good and appreciate the field of business and management and its role and contribution to society and the country. Then, understand business functions covering the areas of production management, marketing, finance, and human resources. This field is important as well. Thirdly, business is important as managing to understand and appreciate the roles, functions, and duties of management in business organizations. 

Let’s not forget that business makes us understand and appreciate the rules and requirements of business management. We build skills to analyze and solve business problems. 

Last but not least, business can build skills in analyzing and solving business problems while increasing knowledge in entrepreneurship. This is suitable software mlm . 

 

 

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