Introduction to Business

Definition of business

• Business: profit and non-profit seeking activities of those engaged in purchasing or selling goods and services to satisfy society’s needs and wants.

What is business?

• Activity seeking profit

• Provides goods/services

• Satisfy standard of living- quality of life [..Higher in

USA, Germany & Japan]

• Nonprofit organizations

Non-Profit Organization

• Not-for-profit organizations: businesslike establishments that have primary objectives other than returning profits to their owners

Evolution of Business

Early economyThe industrial

revolutionThe manufacturing& marketing services

The Service &

Internet-based

Economy

Evolution of Business in BD

• Agricultural/Manufacturing

• Service Industries

• Future???

Revenue, Profit and loss

Revenue -- The total amount of money a business takes in during

a given period by selling goods and services.

Profit -- The amount of money a business earns above and

beyond what it spends for salaries and other expenses.

Loss -- Occurs when a business’ expenses are more than its

revenues

Objectives of Business

Survival

Social ResponsibilityGrowth

The role in business in society

Need and Needs satisfaction

• The multiplicity of human needs

o Humans have a wide range of unlimited physical and psychological needs to satisfy

o Range from the most basic need for food to the need for self esteem

o Society has limited resources to satisfy needs:

• Natural resources

• Human resources

• Capital

• Entrepreneurship

A Business And its stakeholders

Factors Of Production

Land

Labor

Capital

Knowledge

Entrepreneurship

THANKS TO ALL