Intro to Business CHAPTER ONE BUSINESS -. Intro to Business CHAPTER ONE BUSINESS – All profit...
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Transcript of Intro to Business CHAPTER ONE BUSINESS -. Intro to Business CHAPTER ONE BUSINESS – All profit...
Intro to Business
CHAPTER ONE
BUSINESS -
Intro to Business
CHAPTER ONE
BUSINESS – All profit seeking activities and enterprises that provide goods and services necessary to an economic system.
Intro to Business
CHAPTER ONE
BUSINESS – All profit seeking activities and enterprises that provide goods and services necessary to an economic system.
PROFITS – Rewards for business people who take risks to provide goods and services.
Intro to Business
CHAPTER ONE
BUSINESS – All profit seeking activities and enterprises that provide goods and services necessary to an economic system.
PROFITS – Rewards for business people who take risks to provide goods and services.
- This is the central focus of business
- Without profits a company can not survive
- What about Not-For-Profits?
Intro to Business
CHAPTER ONE
Not-For-Profit Organizations
•Place public service above profits
Intro to Business
CHAPTER ONE
Not-For-Profit Organizations
•Place public service above profits
•Must raise money to operate and achieve social goals
•Examples in Peoria, Illinois?
Intro to Business
CHAPTER ONE
Not-For-Profit Organizations
•Place public service above profits
•Must raise money to operate and achieve social goals
•Examples in Peoria, Illinois?
•All have to make money through the sales of goods or services
Intro to Business
CHAPTER ONE
Factors of Production
1. Natural Resources
2. Capital
3. Human Resources
4. Entrepreneurship
Intro to Business
CHAPTER ONE
Factors of Production
1. Natural Resources Rent
2. Capital Interest
3. Human Resources Wages
4. Entrepreneurship Profit
Intro to Business
CHAPTER ONE
Factors of Production
1. Natural Resources Rent
• The most basic inputs required in an economic system
• Wood, Agricultural Land, Steel, Building Sites, etc…
Intro to Business
CHAPTER ONE
Factors of Production
1. Capital Interest
• Needs to be continually acquired, maintained and upgraded. Businesses need money to do this.
• This comes from owner investments, profits put back in, or loans.
• This money then does what?
Intro to Business
CHAPTER ONE
Factors of Production
1. Capital Interest
• Money is used to build factories, purchase raw materials and parts
• Money is used to hire, pay and train employees
• People and firms that supply Capital receive payments in the form of interest
Intro to Business
CHAPTER ONE
Factors of Production
1. Human Resources Wages
• Anyone who works, CEO to self-employed pooper scooper.
• This encompasses physical labor to intellectual inputs. (Doing the work to putting in suggestions) Examples here at PND?
Intro to Business
CHAPTER ONE
Factors of Production
1. Entrepreneurship Profit
• This is the willingness to take risks to create and operate a business
• Sees a potentially profitable opportunity and develops a plan to achieve success
• Examples?
