Chapter 1 Book Notes
Chapter 1 Book Notes BA 101
Popular in Intro to Business
Popular in Business
This 2 page One Day of Notes was uploaded by howellkaila on Tuesday January 27, 2015. The One Day of Notes belongs to BA 101 at University of Oregon taught by Tom Durant in Winter2015. Since its upload, it has received 99 views. For similar materials see Intro to Business in Business at University of Oregon.
Reviews for Chapter 1 Book Notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
Date Created: 01/27/15
Chapter 1 Private Enterprise An Economic Svstem Private Enterprise seeks to find and create opportunity through individuals acting in their own selfinterest as they direct resources and compete to create and keep their profits Three resources required to produce goods and services These are called the factors of production and include the essential elements raw materialsnatural resources tools and machinery laborhuman resources Economics a study of distributing resources for the production of goods and services within a social system Addresses the questions What goods and services and how much produced How will goods be produced Who will produce with what resources How will goods be distributed Capitalist economic system private enterprise system individual citizens own and operate the majority of businesses and the market determines the distribution of resources Individuals act in own self interest and compete Transaction the quantity traded and the trading price determined by supply and demand Demand quantity of goods and service that consumers are willing to buy at different prices Supply quantity of goods and services that businesses are willing to provide at those prices Private Enterprise requires 4 conditions Private Property Freedom of Choice The right to keep profits an environment where fair competition can happen Markets any mechanism that facilitates the exchange of goods and services between buyers and sellers Specialization measure of how broadly or narrowly defined the range of included activities are creates opportunity for greater efficiency and increased productivity Uncertainty lack of knowledge of what will happen Risk measure of significance of those decisions about your choices within a business Decision Making comparing economic and opportunity rewards benefits and sacrifices costs and choosing the best action that meets your goals Objective is make all involved in transaction better off When evaluating choices decision maker consider two kinds of costs economic cost money spent implementing decision opportunity cost cost of what you gave up when committed to course of action if no monetary value is invested then could create the illusion that benefits cost nothing becomes a hidden cost EXAMPLE You didn39t want to work at Taco Bell the rest of your life so you went to college Terms to know Business organization or individual that seeks a profit by providing products that satisfy people39s needs Product a goodserviceidea that has tangibleintangible characteristics that provide satisfaction or benefits Profit basic goal of businesses is the difference between what it costs to make and sell a product and what consumer pays Stakeholders groups of people who have vested interest in actions a business takes owners employees customers citizens Activities of sinesses Marketing activities designed to provide goods and services that satisfy customers Accounting process that tracks the firm39s financial position Production activities and processes used in making products Involve designing and operation Finance funding business and using resources efficiently Managing a siness Terms Planning determining what organization needs and how to get it done Organizing arranging resources and activities in way to make it possible to accomplish plan Operating enacting the plan guiding employees to work toward accomplishing goals and necessary tasks Controlling measuring and comparing performance to expectations and adjusting performance to plan Mangers need to be effective and efficient to achieve goals They need to do the right thing and do things right Innovation motivates businesses to price their products attractively and make their products better for their own future success