Notes On Business Studies (The Nature of Business)

Resource Description

Full set of prelim business notes on the nature of business.

Role of business
● the nature of a business
○ producing goods and services
– The role of a business is to produce goods and services for the community.
– By utilsing raw materials and human skill and labour businesses increase value.
○ Profit
– The financial return businesses gain from providing the community with goods and services.
○ Employment
– The act of hiring people to provide business with paid labour/services
○ Incomes
– Money received by an individual for their services/labour.
– The different types of income include; wages, salaries, shares and dividends
○ Choice
– The ability to select from a range of alternatives, in order to improve quality of life.
○ Innovation
– Significantly improving an existing product or service.

○ Entrepreneurship and risk

– An entrepreneurship is the process of willingly establishing and maintaining a business,
despite the financial risk, in the hopes of making profit.
– Risk is the potential of experiencing loss.○ Wealth
– Wealth measures the value of one’s assets, wealth is distributed primarily by the operation of businesses
○ Quality of life
– Quality of life refers to the level of well being experienced by an individual and is
compromised by both material and non-material factors.