Foundation of Business
and Economics
Business Defined
A profit seeking activity that provides goods and services that satisfy consumers’
needs.
Five Social & Economic
Roles of Business
•Provide society with necessities
•Provide people with jobs
•Pay taxes
•Reinvest profits into the economy
•Success as a business helps the economy
Profit vs. Not-For Profit
•Profit…what remains after all expenses have been deducted from business revenue.
•Not-For Profit…profit is not the motive for being. However the business must still
run efficiently and effectively. The purpose of the revenue is key.
I. Why We Study Business ?
A. Increasing Dependence on Others
I) Over the years, people have become more and more dependent on each
others
II) Mutual dependence
III) Use business system effectively
IV) Be a part of business
Business: The exchange of goods, services or money for mutual benefit or profit
Barter: The exchange of goods without using money
B. International Opportunities
I) Being educated in business, people can avail exciting opportunities in
the 21st century
II) Multinational companies, joint ventures
C. Standard of Living
A measure of how well a person or family is doing in terms of satisfying needs
and wants with goods and services
I) Minimal amount of government interference &
II) A free market business system
Free Enterprise – A system in which
private businesses are able to start and do business competitively to earn
profits, with a minimal degree of government regulation
II. People Form The Core Of Business
A. Owners
People who own a business, as well as those who invest money in one and have
right on the business property, do so because they expect to earn profit
B. Managers
The person responsible for operating the business may be the owner (an owner-
manager also called an entrepreneur) or a professional manager employed by the
owner
I) The owner-manager sets his or her own objectives
and Economics
Business Defined
A profit seeking activity that provides goods and services that satisfy consumers’
needs.
Five Social & Economic
Roles of Business
•Provide society with necessities
•Provide people with jobs
•Pay taxes
•Reinvest profits into the economy
•Success as a business helps the economy
Profit vs. Not-For Profit
•Profit…what remains after all expenses have been deducted from business revenue.
•Not-For Profit…profit is not the motive for being. However the business must still
run efficiently and effectively. The purpose of the revenue is key.
I. Why We Study Business ?
A. Increasing Dependence on Others
I) Over the years, people have become more and more dependent on each
others
II) Mutual dependence
III) Use business system effectively
IV) Be a part of business
Business: The exchange of goods, services or money for mutual benefit or profit
Barter: The exchange of goods without using money
B. International Opportunities
I) Being educated in business, people can avail exciting opportunities in
the 21st century
II) Multinational companies, joint ventures
C. Standard of Living
A measure of how well a person or family is doing in terms of satisfying needs
and wants with goods and services
I) Minimal amount of government interference &
II) A free market business system
Free Enterprise – A system in which
private businesses are able to start and do business competitively to earn
profits, with a minimal degree of government regulation
II. People Form The Core Of Business
A. Owners
People who own a business, as well as those who invest money in one and have
right on the business property, do so because they expect to earn profit
B. Managers
The person responsible for operating the business may be the owner (an owner-
manager also called an entrepreneur) or a professional manager employed by the
owner
I) The owner-manager sets his or her own objectives
