An activity of providing goods and services to fulfill customers needs and wants An organized, profit- seeking approach to providing

g people with goods and services they want (Euthans F,Hodget)

A commercial or industrial entreprise, owned and organized to buy, sell ,manufacture, or provide product or services for a profit. (Steade and Lowry)

The composite of all business firms and their relationship to one another including the buyers, the public and society.

Objectives that a business hopes and plans to achieve An end- state that the business is expected to achieve GOAL SETTING process of developing and committing a business to set an objective

Rovides direction and guidance for business Help the firm to allocate resources Helps business to define corporate culture Helps business managers to assess the business performance

 Long

term goals Intermediate goals Short term goals

Vission
Mission

Objectives
Purpose

Provide goods and services - Making raw material useful to customer - Creating new product - Creating an organized market Provide employment Helping increase growth rate Help protect environment

Def: mechanism which all resources are combined to produced and distribute goods and services Economic: study of wealth Distribution of wealth relates to 3 basic questions: - What? - How? - For whom?

Land

(natural resources) Labour Capital Entrepreneurs

Capitalism
Socialism

Communism
Mixed

economy

Businesses changed due to environmental factors Businesses to survive and grow must adapt with changes in environment

Historical Natural /physical Political or Legal Social Cultural Economic Technological International

Pure monopoly e.g: TNB Oligopoly Monopolistic competition Pure/ Perfect competition

Sole

proprietorship Partnerships Corporations Co-operative

Business owned and operated by one person with the profits motive Easy to start Small in size Limited capital of the owner Eg: Bakery shop, laundry shop

Easy to set up Low cost of org. Financial advantages Freedom to manage and promptness of action Personal incentives and satisfaction

Limited size Unlimited liability Limited life Limited management ability/ Difficulties of management

An association of two or more person Act as a co owner of the business for a profit Legal basis is usually in written document Also known as article of partnership Types of partnership: - General partnership - Limited partnership

 Increase

sources of capital and credit Improve decision making potential Possibilities for expansion and growth Personal interest in business

Unlimited

liability of partners Managerial problems Lack of continuity Difficulty in resolving conflict

Association of individual united for some common purpose and permitted by law to use a common name Chartered by state and employ by many people Separate legal entity by its owner

 Private

or business corporation Public or government corporation Open or close corporation Domestic and Alien corporation

Limited liability of stock holders Continuity of life Ownership of Transfer Specialized management Large financial capability of growth potential

 Legal

restriction on activities Cost and difficulty of org. Double taxation of earnings Lack of personal interest Lack of secrecy

Medication of corporation Business owned and operated for the benefits of the members Gives service rather than profit Profit I the form of Patronage.

Owners are called members Limit to the amount and capital Share only 1 vote for the members Patronage dividend paid in proportion Interest on their investment No salary received.