Nature of Business (Deck A)

Front

Role of Business

Back

The nature of a business involves producing goods and services, profit, employment, incomes, choice, innovation, entrepreneurship and risk, wealth, and quality of life.

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Nature of Business

Back

A business produces goods/services to satisfy the needs and wants of their target market to make a profit.

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Profit

Back

If a business's sales revenue is greater than its operating expenses, it has earned a profit.

Front

How can a business increase profit?

Back

Increase sales, decrease costs, improve productivity, increase market share.

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Employment

Back

Businesses provide employment to people in their local community, and the income attained by employees is used to purchase products.

Front

Define Income

Back

Individuals: money received for providing labor or investment. Business: amount earned after covering all expenses (ROI - Return on Investment).

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Characteristics and features of income

Back

Wage, salary, dividend, bonuses, overtime, commission, fringe benefits.

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Choice definition and characteristics

Back

Choice refers to selecting among alternatives. Shops provide a large amount of choice with different brands, designs, colors, shapes, textures, packaging, sizes, and prices.

Front

Innovation definition and characteristics

Back

Innovation is creating a new or significantly improved product, service, or process. It involves improving existing products, creating new products, and developing efficient ways of distributing and marketing products.

Front

Entrepreneurship and Risk definition and characteristics

Back

Entrepreneurship is the ability and willingness to start, operate, and assume the risk of a business venture in the hope of making a profit. Entrepreneurs take risks by exploring untapped markets.