THE CONCEPT OF BUSINESS AND THE CONCEPT OF PROFITBUSINESS – Organization that provides goods or services to consumers to earn profitsPROFITS – Difference between a business’s revenues and its expensesHow many businesses damage their services trying to make a profit?THE EXTERNAL ENVIRONMENTS OF BUSINESSThis external environment consists of everything outside an organization’s boundaries that might affect it. Not surprisingly, the external environment plays a major role in determining the success or failure of any organizationECONOMIC SYSTEMA nations system for allocating its resources among its citizens, both individuals and organizationPLANNED ECONOMYEconomy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisionsCommunism, SocialismCountry of Peru, took over the milk industry because of shortage of milk, under socialism the country owns most factors of productionFACTORS OF PRODUCTIONThe resources that a country’s businesses use to produce goods and services5 thing that impact a businesses successful operation: Labor, Capital, Entrepreneurs, Physical Resources, Information ResourcesMARKET ECONOMYIndividual producers and consumers control production and allocation by creating combinations of supply and demandMIXED MARKET ECONOMYMGMT105: 1.15.14THE CONCEPT OF BUSINESS AND THE CONCEPT OF PROFIT-BUSINESS – Organization that provides goods or services to consumers to earn profits-PROFITS – Difference between a business’s revenues and its expensesHow many businesses damage their services trying to make a profit?THE EXTERNAL ENVIRONMENTS OF BUSINESS-This external environment consists of everything outside an organization’s boundaries that might affect it. Not surprisingly, the external environment plays a major role in determining the success or failure of any organization-ECONOMIC SYSTEMoA nations system for allocating its resources among its citizens, both individuals and organization-PLANNED ECONOMYoEconomy that relies on a centralized government to control allor most factors of production and to make all or most production and allocation decisionsCommunism, SocialismCountry of Peru, took over the milk industry because of shortage of milk, under socialism the country owns most factors of production-FACTORS OF PRODUCTIONoThe resources that a country’s businesses use to produce goods and serviceso5 thing that impact a businesses successful operation: Labor, Capital, Entrepreneurs, Physical Resources, Information Resources-MARKET ECONOMYoIndividual producers and consumers control production and allocation by creating combinations of supply and demand-MIXED MARKET
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