CMR 302 Assignment 1

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  • A business is usually defined as a commercial enterprise
  • Some are run by only one person who carry out all of the required functions
  • Others employ thousands of people and provide goods and services to people all over the world
  • Each business can be defined or described by its type of ownership, the goods produced or services offered,

the types of jobs provided, or the functions

it performs in a community

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  • Businesses are started by entrepreneurs who see a need, recognize the opportunity, and go into business to meet that need
  • Business and people need each other – there are many stakeholders – we depend on businesses for products and services, but also for employment
  • Buy inputs – raw materials, labour, machinery and equipment, and land
  • Produce outputs – goods and services
  • Focus on efficient use of resources
  • Generate profit/surplus
  • Who are the stakeholders? – Anyone who has an interest in the success of a business

Customers

Managers

Employees

Owners

Local Community/Environment

Suppliers

Government

Creditors

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Take Inputs

Process/Manufacture

Output

Costs – Fixed and Variable

Revenue

Profit

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  • A group of businesses that all produce similar products is called an industry

Example: Automobile manufacturers and automobile parts is the Automobile Industry

  • Separated into three categories – primary, secondary, and tertiary

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