What is a business ?

WHAT IS A BUSINESS ?

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Focus on different types of businesses

• Private households come in many different forms – large families, singles, couples, with or without children – and so do businesses. The large variety of businesses is due to the fact that they differ in the factors of production that they combine, in the sector(s) they operate in and in size. But they all need to consider their stakeholders around them and the environment.
• 3.1 Businesses combine different factors of production
• As mentioned earlier in the introduction, a business is an entity that offers goods and/or services to customers. In order to do so, it combines different factors of production, the resources used to create goods and services. The most important factors are
• ∎ labour (all human resources),
• ∎ land (all natural resources),
• ∎ capital (resources like machinery, plant, vehicles, financial resources), and
• ∎ entrepreneurship (which brings land, labour and capital together) as well as
• ∎ knowledge and technologY

YOU CLIMB THE LADDER IN BUSINESS AS IF YOU WERE CLIMBING A LADDER

Marketing

• The most important thing in business is advertising because if we don’t advertise our product, that is, if we don’t inform customers about the product, it will be difficult for us to sell our product. In addition, advertising informs the whole world about our product, I think advertising is the most necessary thing in the business. From the above, we can conclude that marketing is an integral part of this business

WILL BE FUN WITH BUSINESS PARTNERS

What a BUSINESS product is

• In marketing terminology, a product is every good and service that can be exchanged in order to fulfil the wishes and needs of customers. Customers can be either other businesses or consumers (private households). Producer products are goods and services that are sold from one business to another (business-to-business, B2B), while consumer products are sold to consumers or private households (business-to-consumer, B2C).

INTELLIGENCE AND COLLABORATION ARE IMPORT IN BUSINESS

Analysis of financial statements

• The information given in the balance sheet and in the income statement can be used to calculate figures and ratios in order to learn more, e.g. about the
• ∎ liquidity of a business,
• ∎ profitability
• ∎ financial efficiency,
• FINANCIAL STRUCTURE

THANK YOU FOR YOUR ATTETION

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