Introduction:
Business is an essential part of our daily lives, whether we realize it or not. From the corner store to global corporations, business impacts us all. This report aims to provide a simple guide to the basics of business to help you understand its fundamental concepts.
1.What is Business?
Business is all about creating and exchanging goods or services for profit. It can be a small shop, a large company, or even an online venture.
2.Types of Businesses:
There are various types of businesses, including:
Sole Proprietorship: Owned by one person.
Partnership: Owned by two or more people.
Corporation: A separate legal entity owned by shareholders.
Small Business: Typically a small, independently-owned operation.
Franchise: A business model where individuals buy the right to operate under an established brand.
3.Business Goals:
The primary goal of most businesses is to make a profit, but they may also focus on other objectives like growth, customer satisfaction, or social responsibility.
4.Key Functions:
Businesses typically have these key functions:
Marketing: Promoting and selling products or services.
Operations: Managing day-to-day activities.
Finance: Handling money and financial matters.
Human Resources: Managing employees.
5.Revenue and Expenses:
Revenue is the money a business earns from selling goods or services.
Expenses are the costs incurred to run the business, including salaries, rent, and supplies.
6.Profit:
Profit is what’s left after subtracting expenses from revenue. It’s the money a business keeps.
7.Competition:
In the business world, companies often compete to attract customers and gain market share.
8.Customers:
Customers are the people or other businesses that buy products or services. Keeping customers happy is crucial.
9.Business Ethics:
Business ethics involve making moral and responsible decisions in business operations.
10.Risks:
Every business faces risks like financial instability, market changes, and competition. Managing risks is vital for long-term success.
Hendra Pattimura 