Nature of Business Topic Notes

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iThe Nature Of Business: TOPIC 1 Business | The organized effort of individuals to produce and sell goods for a profit that satisfies individuals needs and wants | Product | Is a good or service that can be bought or sold | Goods | Are items that can be seen and touched. | Services | Are things done for you by others | Finished product | Is something that is ready for customers to buy and use | Production | Are activities that are undertaken by the business. They combine resorsed to create products that satisfy the customers needs and wants | Revenue | Is the money the business receives as payment for its products | Operating expenses | Are all the costs of a running business except the costs of the goods sold. | Profit |…show more content…
It can be divided into two broad categories: internal and external | External Environment | Includes those factors which that business has very little control | Internal environment | Includes those factors over which the business has some degree of control | Economic Cycle | Are periods of growth(bloom) and ressesion(bust) that occurs as a result of fluctuations in the general level of economic activity | Deregulation | Is the removal of government regulation from industry, with the aim of increasing efficiency and improving competition | Globalisation????????!!!!!!!1 | Is the process that sells peoples goods, money and ideas moving around the world more cheaply than before | Goods And
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