Exploring the World of Business and Economics (Chapter 1)

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Business is defined as,

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the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society’s needs

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To be successful, a business must: be organized, earn a profit, satisfy needs, all of those listed

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all of those listed

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To be organized, a business must combine four kinds of resources. The raw materials, buildings, and machinery that a business utilizes are examples of,

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material resources

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In a business, the people who provide labor in return for wages are classified as this type of resource.

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human resources

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The ability to pay employees and purchase the materials needed to operate a business is an example of,

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financial resources

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In business, this resource is the ability to effectively organize and manage the other three resources a business needs to utilize if it wishes to be successful.

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informational resources

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Often, businesses are categorized by their specific type/purpose. Businesses such as haircutters/salons, legal advice, and tax preparation offices are classified as,

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service businesses

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The organized effort of individuals to produce and sell for a profit, the goods and services that satisfy society’s needs through the facilities available on the internet is known as,

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e-business

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In business, the primary objective of every firm and/or business is to, attract new clientele to the business, ensure employees are paid on time, make a profit, satisfy the needs of its customers

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satisfy the needs of its customers

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In a successful business model, a business receives money (sales revenue) from its customers in exchange for goods or services. When the firm’s sales revenues are greater than its expenses it has,

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earned a profit