A business is created to provide
product or services to customers. If it can conduct its operations effectively,
its owner earn a reasoable return on their investment in the firm. In addition,
it creates it creates jobs for employees.
A business is an enterprise that
provides products or services desire by customers.
The goal of a business
Business are established to serve
the need of consumers by owners who seek to make profits. The people who create
a business may see an opportunity to produce a product or service that is not
already being offered by other firm.
The profit that you earn from
your new business are depended on three condition:
1. There needs to be a demand for the service that you offer.
If there is no demand, you will not generate any revenue and therefore, will
not earn profit.
2. You need to attract customer, meaning that they choose you
instead of your competitor ( other tutor ). If you offer a better service or
lower price may choose you instead of your competitor.
3. To earn high profit, you need to keep your expenses low. If
you can run your business efficiently, your expenses should be relatively low,
and you will be rewarded with higher profit.
Business ethics and social responsibility
A firm’s employees should practice
business ethics, which involves following a set of principles when conducting
business. Each firm has a social responsibelity, which is the firm’s
recognition of how its business decision can affect society.
a) Responsibility to
b) Responsibility to
Firms ensure that the workplace
is safe for employees by closely monitoring the production process.
Firms are responsibility for ensuring that employee are treated properly
by other employees.
c) Firms are Responsible
for satisfying their owners (or stockholder ).
d) Responsibility to
Firms are Responsible for meeting
their financial obligations to their creditors. If a firm is experiencing
financial problems and is unable to meet its obligation, it should inform its
e) Responsibility to the
1. Sighting return the production process
2. Governmental management guide
1. Firm have revised their production and packaging processes
to reduce the amound of waste.
2. They now store toxic waste and deliver it to specified toxic
waste storage site.
3. They also recycle plastic and limit their use of materials
that would ultimately become solid waste.
f) Responsibility to the
the local society event.
to society unable to.
for the purpose of educational
Assessing economic conditions
Economic condition reflect the
level production and consumption for a particular country, area, or industry.
Impact of economic growth on
Economic growth represents the
change in the general level of economic activity. Sometimes economic growth is
strong, and other times it is relatively weak.
The impact of a stronger economic
can spread quickly across all business. Once consumers begin to increase their
spending. Firms experience a stronger demand for their products and may begin
to hire more employees to accommodate that increased demand.
The impact of a weak economic
conditional can spread quickly across all business. When conditional are weak,
some businesses are affected more than other
Impact of inflation
Inflation affect a firm's
performance because it can effect the revenue or expenses of a firm. When
inflation is high, firm incur higher cost of production. If they pass on the
higher cost to consumer by raising price, the consumer may reduce their demand
for the products, and revenue (and profit) will decline.
Impact of interest rates
Interest rates impact a firm’s
performance because they can affect the revenue or expenses of a firm. When
interest rates increase, the firm’ cost of borrowing increase. Therefore, its
expenses increase and its profits may decline.