Business Notes:
Chapter 1 - the nature of a business
Role a business plays in society:
"ñEmploys people
"ñBasis of nations economy
"ñBrings technological change and innovation
"ñOffers choices relating to work and consumption
"ñProvides social interaction
Definition of a business:
To produce goods and services to add value in the process of production
Value chain is the concept that value is added at each stage of production process, as inputs are transformed into final products
Making profit is important to most businesses but not all. Some aim to provide the community with a service eg: the ABC (Australian broadcasting commission)
What is a small business:
"ñIndependently owned an operated
"ñControlled by owners or managers who also contribute most of the operating capital
"ñDecisions are made by the owners or managers
Can also be defined as:
"ñA non-manufacturing business employing less than 20 employees
"ñA manufacturing business employing less than 100 employees
Medium sized businesses employ 20-99 people and a large business employs more than 200 staff.
Some times small and medium businesses are grouped together known as SME's (small and medium enterprises)
Small businesses play a vital role in Australia's economy. Over 1 million private sector business, employing 3.5 million people. non agricultural and small businesses make up 1/3 of Australia's economy and 40% of the total employment.
Contributions made by small businesses to the economy:
"ñCreate jobs
"ñHelp increase national income and living standards
"ñIncrease exports
"ñHelp growth in specific areas and strengthen local communities
"ñHelp innovate
"ñImprove skills of the workforce
"ñStrengthen family ties - 2/3 of small businesses are family owned
Business goals: 2 different business goals:
1.Financial goals
2.Social goals
Financial goals:
1. Breaking even: the 1st goal of any business in survival. Business needs to have enough revenue to cover its costs,
Good notes
Well, since I've just learnt my business studies, related to general business), I see that you did a good job in this essay. I am able to re-read these notes for my coming tests :-)
Thanks!!!
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