The Nature of Business
An organization that strives for a profit by providing goods and services desired by its customers.
A business
Expenses incurred from creating and selling goods and services.
Costs
The study of how a society uses scarce resources to produce and distribute goods and services.
Economics
The subarea of economics that focuses on the economy as a whole by looking at aggregate data for large groups of people, companies, or products.
Macroeconomics
An organization is an organization that exists to achieve some goal other than the usual business goal of profit.
not-for-profit organization
The quantity of a good or service that people are willing to buy at various prices.
Demand
The combination of policies, laws, and choices made by its government to establish the systems that determine what goods and services are produced and how they are allocated.
The economic system
Refers to the combined talents and skills of the workforce and has become a primary driver of economic growth
Knowledge
People who combine the inputs of natural resources, labor, and capital to produce goods or services with the intention of making a profit or accomplishing a not-for-profit goal.
Entrepreneurs
the application of science and engineering skills and knowledge to solve production and organizational problems
Technology
Complete freedom of trade. No or little government control.
Capitalism
Step 1 - Find a problem; Step 2 -Find a solution; Step 3 - offer the solution
Steps to form a business
Natural resources, labor (human resources), capital, and entrepreneurship
Factors of production
Consists of economic, political and legal, demographic, social, competitive, global, and technological sectors.
External business environment
The government owns virtually all resources and controls all markets
Communism
Total value of all goods and services produced in a year
Gross Domestic Product (GDP)