Intro To Business Chapter 1

Business

Individuals or organizations trying to earn a profit by providing products that satisfy people’s needs

Products

Goods, services or ideas with tangible and intangible characteristics that provide satisfaction and benefits

Goal of a Business

To Earn a Profit

Profit

Difference between what it costs to make and sell a product and what a customer pays for it

How does earning profits contribute to society

Provides employment which in turn provides money that is reinvested in the economy

Profits must be earned in a (blank)

Responsible manner

What you need to earn a profit?

Management skills, marketing expertise, financial resources, product and staff, abiding by the law, adapting to change, acting ethically

Non Profit Organizations

Provide goods and services but do not have the fundamental purpose of earning profits