NAME: UGOCHUKWU UDORJI
ID: BU/23A/BS/8224
INTRODUCTION TO BUSINESS 2 (BUS 102) NOTES
LECTURE 1: THE SCOPE OF BUSINESS
• A Business is any organization that provides goods and/or services for the purpose of
making profits. Profits are the positive difference between revenues and expenses.
• The goods and/or services that businesses provide can be broken into two (2) categories:
a. Tangible: e.g furniture, food, clothing. b. Intangible: a service, an idea, an advice
• Though they may share some similarities, a business is different from a Non-profit
organization because its main purpose is to provide products and/or services in order to
make a profit, e.g KFC, Dangote cement, whilst Non-profit provides goods and/or
services for purposes other than making a profit, e.g Universities, charity organizations.
• The business world contains diverse entities with many layers, that are connected through
their roles in a business organization.
• At the core and primary level of every business organization is a trident of owners,
customers and employees. These three form the basis exchange in a business. They are
also the people involved in the running of a business.
• At the secondary level we have finance, management and marketing. These three oversee
the internal workings of a business and are responsible for the operations and growth of a
business. They are also the activities a business is involved in.
• As businesses do not exist in a vacuum, they are affected by external factors (both macro
and micro) that influence its activities and growth. They are:
o The economy in which the business operates.
o Information technology at its disposal and users are familiar with.
o The legal and regulatory forces that guides it activities and operations within their
environment.
o Their social responsibilities and ethical obligations to their customers and the
environment.
o The competition they face in their industry.
• There are many reasons for studying business as an academic discipline. Some of them
are:
o To develop one’s skills and acquire knowledge to prepare for your future career.
o To help one better understand the many business activities that are necessary to
provide satisfying goods and services.
• There are five factors of production in the modern economy. They are:
o Land
o Capital
o Physical resources
o Entrepreneur
o Information resources
• There are different types of resources used by businesses. They are:
o Natural resources: These are not man-made. E.g land, forests
, o Human resources: They are physical/mental abilities of people used to produce
goods and services.
o Financial Resources: They are funds necessary to acquire the needed natural and
human resources for a business.
• For a business to operate, it must make economic decisions. These decisions are what
forms the economic system. They are the way a society distributes its resources to
produce goods and services. How they address the issue of how to fulfill unlimited
demand with limited supply of resources. What to produce, who to produce for and how
to produce it.
LECTURE 2: CONCEPT OF BUSINESS MANAGEMENT AND ADMINISTRATION
For a business to operate successfully, it must function within the framework of an
organization and administration. Both organization and administration are two concepts that
are used interchangeably in various discussions, but in the context of business, there is a
distinction between the two.
Hartzell (2006) differentiated between the two. He described Administration as a structure
whose main functions include the formulation of broad objectives, plans and policies, i.e
setting the long-term objectives of the organization. They decide what is to be done and when
it is to be done. They are important at the top levels of management and are commonly used
for non-business institutions.
He then described management as the structure whose main function are getting the work
done through others in order to achieve the set goals. It is an executive function which
decides who has to do what and how. It is more important and suited for middle levels, and is
used by business enterprises.
Administrative structures are divided into two according to their functions, they are:
a. The line functions: They are those whose direct responsibility it to pursue and
achieve organizational goals. They are core of the objectives of the business, and are
involved in the profit-making objectives of the business. Line positions are engaged
with line personnel and line managers. Line personnel carry out the primary activities
of a firm and are considered significant to the basic functioning of the organization.
Line managers make majority of the decisions and direct line staff work to achieve
company goals. In Baze for example, the line personnel are the lecturers and the other
academic staff.
b. The staff functions: They are those who provide service, help and advice the line
staff to work most effectively in accomplishing the objectives of the enterprise. Staff
positions serve the business by indirectly supporting line functions. Staff positions
include staff personnel and staff managers. Staff managers provide support, advice,
and knowledge to other individuals in the chain of command. Even though staff
managers are not part of the chain of command related to direct production of
products or services, they do have authority over personnel. An example of a staff
manager is a legal adviser. In Baze for example, the staff personnel are the security
personnel and gardeners.
ID: BU/23A/BS/8224
INTRODUCTION TO BUSINESS 2 (BUS 102) NOTES
LECTURE 1: THE SCOPE OF BUSINESS
• A Business is any organization that provides goods and/or services for the purpose of
making profits. Profits are the positive difference between revenues and expenses.
• The goods and/or services that businesses provide can be broken into two (2) categories:
a. Tangible: e.g furniture, food, clothing. b. Intangible: a service, an idea, an advice
• Though they may share some similarities, a business is different from a Non-profit
organization because its main purpose is to provide products and/or services in order to
make a profit, e.g KFC, Dangote cement, whilst Non-profit provides goods and/or
services for purposes other than making a profit, e.g Universities, charity organizations.
• The business world contains diverse entities with many layers, that are connected through
their roles in a business organization.
• At the core and primary level of every business organization is a trident of owners,
customers and employees. These three form the basis exchange in a business. They are
also the people involved in the running of a business.
• At the secondary level we have finance, management and marketing. These three oversee
the internal workings of a business and are responsible for the operations and growth of a
business. They are also the activities a business is involved in.
• As businesses do not exist in a vacuum, they are affected by external factors (both macro
and micro) that influence its activities and growth. They are:
o The economy in which the business operates.
o Information technology at its disposal and users are familiar with.
o The legal and regulatory forces that guides it activities and operations within their
environment.
o Their social responsibilities and ethical obligations to their customers and the
environment.
o The competition they face in their industry.
• There are many reasons for studying business as an academic discipline. Some of them
are:
o To develop one’s skills and acquire knowledge to prepare for your future career.
o To help one better understand the many business activities that are necessary to
provide satisfying goods and services.
• There are five factors of production in the modern economy. They are:
o Land
o Capital
o Physical resources
o Entrepreneur
o Information resources
• There are different types of resources used by businesses. They are:
o Natural resources: These are not man-made. E.g land, forests
, o Human resources: They are physical/mental abilities of people used to produce
goods and services.
o Financial Resources: They are funds necessary to acquire the needed natural and
human resources for a business.
• For a business to operate, it must make economic decisions. These decisions are what
forms the economic system. They are the way a society distributes its resources to
produce goods and services. How they address the issue of how to fulfill unlimited
demand with limited supply of resources. What to produce, who to produce for and how
to produce it.
LECTURE 2: CONCEPT OF BUSINESS MANAGEMENT AND ADMINISTRATION
For a business to operate successfully, it must function within the framework of an
organization and administration. Both organization and administration are two concepts that
are used interchangeably in various discussions, but in the context of business, there is a
distinction between the two.
Hartzell (2006) differentiated between the two. He described Administration as a structure
whose main functions include the formulation of broad objectives, plans and policies, i.e
setting the long-term objectives of the organization. They decide what is to be done and when
it is to be done. They are important at the top levels of management and are commonly used
for non-business institutions.
He then described management as the structure whose main function are getting the work
done through others in order to achieve the set goals. It is an executive function which
decides who has to do what and how. It is more important and suited for middle levels, and is
used by business enterprises.
Administrative structures are divided into two according to their functions, they are:
a. The line functions: They are those whose direct responsibility it to pursue and
achieve organizational goals. They are core of the objectives of the business, and are
involved in the profit-making objectives of the business. Line positions are engaged
with line personnel and line managers. Line personnel carry out the primary activities
of a firm and are considered significant to the basic functioning of the organization.
Line managers make majority of the decisions and direct line staff work to achieve
company goals. In Baze for example, the line personnel are the lecturers and the other
academic staff.
b. The staff functions: They are those who provide service, help and advice the line
staff to work most effectively in accomplishing the objectives of the enterprise. Staff
positions serve the business by indirectly supporting line functions. Staff positions
include staff personnel and staff managers. Staff managers provide support, advice,
and knowledge to other individuals in the chain of command. Even though staff
managers are not part of the chain of command related to direct production of
products or services, they do have authority over personnel. An example of a staff
manager is a legal adviser. In Baze for example, the staff personnel are the security
personnel and gardeners.
