Ch1 Introduction to Business Textbook
Ch1 Introduction to Business Textbook BA 101
Popular in Business 101
verified elite notetaker
Popular in Business
This 3 page Class Notes was uploaded by Jillian Rogers on Wednesday October 14, 2015. The Class Notes belongs to BA 101 at University of Oregon taught by Tom Durant in Fall. Since its upload, it has received 68 views. For similar materials see Business 101 in Business at University of Oregon.
Reviews for Ch1 Introduction to Business Textbook
Report this Material
What is Karma?
Karma is the currency of StudySoup.
Date Created: 10/14/15
Text Ch 1 Private Enterprise p 3 9 Summary Questions p 10 Foundation EX 1 Questions p 1114 Resources There are three kinds of resources required to produce goods and services 1 Raw material or natural resources 2 Tools and machinery 3 Labor or human resources Economics is a study of distrusting resources for the production of goods and services within a social system 0 What goods and services are needed how much of each will be produced 0 How will the goods and services be produced 0 Who will produce them and with what resources 0 How will the goods and services be distributed One view of economics is to categorize jobs into four sectors 1 Agriculture primary sector 2 Manufacturing secondary 3 Service tertiary 4 Fourth sector quaternary distinguishes intellectual and information services Communism socialism and capitalism are different ways in with the economic system can be structured and organized 0 Capitalist private enterprise system individual citizens own and operate the majority of business and the market determines the distribution or resources The private enterprise system requires the existence of four conditions 1 Private property 2 Freedom of choice 3 The rights to keep profits 4 An environment where fair competition can occur There are times when this system requires boundaries which is where the government steps in and establishes an economic system through the rule of law Markets Specialization creates an opportunity for greater efficiency and increased productivity these different levels of specialization and different kinds of coordinating mechanism create a complex economic environment Markets are also characterized by uncertainty and risk Decision Making Decision making involves comparing the economic and opportunity rewards benefits and sacrifices costs involved in a course of action and committing to the one that best meets your goals The objective is to make good decisions to help you accomplish your goals Business decisions primarily focus on gaining economic rewards Consider two kinds of costs 1 Economic cost 2 Opportunity cost Assessing opportunity costs is important to determine the true cost of any decision Only one chose is possible only one benefit is attainable Business decisions consider economic and opportunity costs and provide a structure to make those decisions Activities of Business The most basic way to categorize the activities of a business is to place them into the one of the following areas Marketing Production Finance or Accounting Managing a Business Managing a business requires planning organizing operating and controlling the various aspects of the business My the quantity of goods and services that consumers are willing to buy at different prices the quantity of goods and services that businesses are willing to provide at those prices the measure of how broadly or narrowly defined the range of included activities are having a lack of knowledge of what will happen the unpredictability about the consequence of your choice in a decision situation also associated with the consequences of choice and therefore risk is a measure of the significance of those decisions the money spent implementing the decision the cost of what you gave up doing when you committed to the course of action you chose an organization or individual that seeks a profit by providing products that satisfy peoples needs or wants a good service or idea that has both tangible and intangible characteristics that provide the satisfaction or benefits the basic goal of business and is the difference between what is cost to make and sell a product and what the customer pays for it groups of people who have invested interest stake in the actions a business takes There are four major groups of stakeholders 1 Owners 2 Employees 3 Customers 4 Citizens refers to the activities designed to provide goods and services that satisfy customers There activities include market research development of products pricing promotion distribution refers to the process that tracks summarizes and analyzes a firm s financial position refers to the activities and processes used in making products These activities involve designing the production process investments in facilities and equipment and the efficient management and operation of those processes refers to the activities concerned with funding a business and using resources effectively Determine what the organization needs to do and how to get it done Arranging the organization s resources and activities in such a way as to make it possible to accomplish the plan Enacting the plan including guiding and motivating the employees to work toward accomplishing the necessary tasks Measuring and comparing performance to expectations established in the planning process and adjusting wither the performance or the plan Doing the right thing being effective involves committing to a course of action that will allow you to accomplish your goals Doing things right being ef cient refers to employing an appropriate process to achieve your goals Measures of ef ciency involve comparing the resources invested to the outcomes achieved