Chapter 1 business notes

1.1 Introduction to Business Management

 What is a business?
 Decision-making company or organization
 May/may not be for profit
 Involves the exchange of goods and services
 Produce goods and/or provide services
 Exist to satisfy the needs and wants of people, organizations,
governments, etc.
 Enterprise – a group of people that tackles an objective, usually profit
 Quality of output depends on quality of inputs

 Main inputs in a business
 Capital
 Amount of money needed to run a business
 Man-made goods like machines, buildings, vehicles, and equipment
needed for business to operate
 Investment – increasing spending on capital
 Land
 Space where a business operates
 Raw materials and natural resources that are used in making a
product
 Labor/manpower
 Physical & mental efforts of people to produce products/services
 Enterprise/entrepreneurship
 Management, organization, and planning of other three factors of
production
 Actions of entrepreneur who shows initiative and takes risks to set
up, invest, and run a business
 Main business functions and their roles
 Human resources
 Manages the workforce and laborers of the company
 Deals with recruitment, wages, communication, and motivation of
employees
 Finance and accounts
 In charge of managing the organization’s money and assets
 Ensures accurate recording and reporting of financial
documentation (to comply with legal requirements)
 Marketing
 Ensure that a company’s products sell
 Concerned with identifying and satisfying consumers’ needs/wants
 In charge of promotions, advertisements, etc.
 Operations
 In charge of business functions and processes that produce the
actual goods