What Is Business? 10/9/2021
Business – any organisation that is involved in any organised form of trade, industrial or professional
activities.
Goods: Physical items
Service: Non-physical/intangible actions provided
Why do businesses exist?
To keep money in the economy
To achieve objectives
o Profit
o Growth
o Survival
o Cash flow
o Social
o Ethical
Objectives: They are quantifiable targets or goals to be achieved within a given time frame.
Profits:
To achieve sales revenues that is higher than total costs
Profits = Sales revenue – Total cost
Growth:
To increase in size either by value of sales or volumes of sales (or both)
This may be organically e.g. opening new stores, launching new products or externally e.g.
joining with other businesses or taking over them.
External
o Merger: when two companies combine together.
o Acquisition: when one company buys another.
Business – any organisation that is involved in any organised form of trade, industrial or professional
activities.
Goods: Physical items
Service: Non-physical/intangible actions provided
Why do businesses exist?
To keep money in the economy
To achieve objectives
o Profit
o Growth
o Survival
o Cash flow
o Social
o Ethical
Objectives: They are quantifiable targets or goals to be achieved within a given time frame.
Profits:
To achieve sales revenues that is higher than total costs
Profits = Sales revenue – Total cost
Growth:
To increase in size either by value of sales or volumes of sales (or both)
This may be organically e.g. opening new stores, launching new products or externally e.g.
joining with other businesses or taking over them.
External
o Merger: when two companies combine together.
o Acquisition: when one company buys another.
