Business Studies Preliminary

TOPIC 1- NATURE OF BUSINESS SUMMARY AND QUESTION NOTES. * A business is an organization that produces goods and services that people want. Businesses take inputs and admit them into production of goods and services or outputs. The PRIME FUNCTION is the study activity or productive process of a business. Businesses make it to produce goods and services but they curb other functions as well. Businesses have a responsibility to the nation both soci every(prenominal) in ally and economically to generate wealth, create employment and improve the pattern of living. Many also produce profits and create option for the consumers. * Profit is what remains after all business expenses have been deducted from sales revenue. The businesss profit becomes the property of its owners. When a businesss expenses are greater than its sales/revenue, it is called a loss. * Quality of life refers to the overall wellbeing of an individual. The products and services provided by businesses increase the quality of life for all Australians. Businesses provide an probability for people to use their skills to produce goods and services efficiently. * Those businesses which focus on the processing of information, and include I.T., telecommunications, and financial services are quaternate industries.

Those industries that focus on providing domestic services including home cleansing are called quinary industries. * Incorporated business is an officially registered business and it becomes a legal entity on its own right. Unincorporated businesses have no legal differences from the owners and therefore owners responsibility. * Advantages of sole traders: 1. Owner is his/her own boss, 2. all profits belong to the business; 3. Owner is responsible for all the decisions, 4. It is an inexpensive business to establish and maintain. Disadvantages: 1. Owner must brave all the losses, 2. there is unlimited liability which means private assets are at risk. * Advantages of partnerships: 1.... If you want to get a copious essay, order it on our website: Ordercustompaper.com

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