Scope of Business

Production

The process of converting raw materials into finished goods.

Transportation

Moving goods from production to consumption points to create place utility.

Place Utility

The value added to goods by making them available where they are needed.

Factors of Production

The four key elements of production: land, labor, capital, and entrepreneurship.

Land

The natural resources used in the production process.

Labor

The human effort and workforce involved in production.

Capital

The financial resources necessary for production.

Entrepreneurship

The vision and driving force behind the production process.

Time Utility

The value added to goods by storing them and making them available when needed.

Financing

Finance is the life blood of every business and necessary for funding every step of the process.

Kinds of finance

Capital, Loan and retained earnings

Effective finance descision

Balancing loans and retained earnings

Grading and Standardization

The process of ensuring goods and services meet accepted norms and uniformity. It creates consumer trust.

Uninsurable Risks

Risks that cannot be covered under an insurance policy, often related to market changes.

Trade

The act of buying and selling goods, which is essential in the business process.

(It is a branch of business)

Information

Data that is processed and organized to provide meaning.

Kinds of information

Primary: Research, Observation, Analysis

Secondary: Articles, Libraries, and News

Why is information necessary?

The quality and soundness of decisions depend on relevant and latest data.

Grading

The evaluation of goods based on quality, size, or other criteria for agricultural based goods.

Standardization

The establishment of criteria and guidelines to ensure uniformity in industrial products.