Business Studies Prelim Topic 1 Notes
Role and functions of business - A business is an organisation that attempts to satisfy the needs and wants of individuals by providing goods and/or services. It produces products (goods (tangible) and services (intangible)) that can be bought or sold in aim to generate profit.
Employment: One of the most important roles business plays in society is the provision of employment. Very small businesses with fewer than nine employees employ over 16% of the workforce. Businesses with fewer than a hundred employees employ over 42% of the workforce. Incomes: Businesses provide income to business owners/shareholders and employees. Choice: Consumers have freedom of choice—the choice of what to purchase and where to purchase it. Businesses have a choice of what they produce. Innovation: For one business to capture and maintain a competitive edge over other businesses it needs to be constantly seeking ideas for new products, product modifications or different markets for existing products. entrepreneurship: An entrepreneur is someone who starts, operates and assumes the risk of a business venture in the hope of making a profit. And quality of life: refers to the overall wellbeing of an individual, and is a combination of both material and non-material benefits.
To provide products demanded, businesses require production. This occurs when the business combines the resources to create finished products.
Types of business
• classification of business o size – small-medium enterprises make up 98% of all businesses in Australia.
(SMEs), large micro: 1-5, 82% of non-manufacturing SME's. small: 1-20 employees, sole trader or partnership, quick decision making medium: 20-199, partnership or private company, owner makes decision large: 200+, public company, complex decision making, division of responsibilities among directors o industry classification: primary - includes all those businesses in which production is directly associated with
Employment: One of the most important roles business plays in society is the provision of employment. Very small businesses with fewer than nine employees employ over 16% of the workforce. Businesses with fewer than a hundred employees employ over 42% of the workforce. Incomes: Businesses provide income to business owners/shareholders and employees. Choice: Consumers have freedom of choice—the choice of what to purchase and where to purchase it. Businesses have a choice of what they produce. Innovation: For one business to capture and maintain a competitive edge over other businesses it needs to be constantly seeking ideas for new products, product modifications or different markets for existing products. entrepreneurship: An entrepreneur is someone who starts, operates and assumes the risk of a business venture in the hope of making a profit. And quality of life: refers to the overall wellbeing of an individual, and is a combination of both material and non-material benefits.
To provide products demanded, businesses require production. This occurs when the business combines the resources to create finished products.
Types of business
• classification of business o size – small-medium enterprises make up 98% of all businesses in Australia.
(SMEs), large micro: 1-5, 82% of non-manufacturing SME's. small: 1-20 employees, sole trader or partnership, quick decision making medium: 20-199, partnership or private company, owner makes decision large: 200+, public company, complex decision making, division of responsibilities among directors o industry classification: primary - includes all those businesses in which production is directly associated with