Business refers all profit-seeking activities and enterprises that provide goods and services necessary to an economic system.
As Example some businesses produce tangible goods, such as automobiles, breakfast cereals, and digital music players; others provide services such as insurance, hair styling, and entertainment ranging from Six Flags theme parks and sports events to concerts.
Business is the all profit-seeking activities and enterprises that provide goods and services necessary to an economic system.
A business is an organization engeged in producing goods and services to make a profit. Businesses come in all sizes, shapes, and varities but may be divided into goods-producing and service-producing firms. Regardless of what they produce , the common ingredient is profit.
The American business system is known as private enterprise because the factors of production and the businesses are owned by private individuals and not by public entities like the government. This system is based on the right to private property, the right to freedom of choice, the right to profit, and the right to compete.
To produce goods and services in the private enterprise system the four factors of production (land, labor, capital, and entrepreneurship) are obtained from the individuals that own them in exchange for income. Once the factors of production are combined, they sold to individual consumers. The consumers purchase these goods with the money obtained by selling the factors of production.
The three basic economic systems are capitalism, communism, and socialism. An economic system is the method society uses to allocate its resources to satisfy its needs. In the United States the private enterprise system is an economic system called capitalism. In capitalism the factors of production are in private hands. Our original economic system, pure capitalism (no government interference), has evolved to mixed capitalism in which the government plays an active role.
Communism is an economic system under which the government controls the factors of production. Supply, demand, and competition have no influence. Central government planners make all the economic decisions about production and resource allocation.
Socialism is an economic system in which much ownership is private, but the government controls the operation and direction of basic industries. The control is to ensure the enforcement of a belief that there are certain products and services everyone should have and that these should not be dependent on whether or not a person has money.
The American business system today is far different that it was 50 or 200 years ago. It has undergone significant changes as it has evolved from the colonies through the Industrial Revolution to become a national and international industrial power. More recently the country, because of the increased standard of living and growth in technology, has evolved to a service-oriented economy.
One of the reasons that the evolution of business in America has taught us is that change is constant and that survival depends on being able to adapt. Those companies that adapt are still in business. Those that did not are not. Business faces the future challenges of productivity, diminishing, resources, international business, technology, and social responsibility.
People undertake the study of business for different reasons. The most common are to understand the overall impact of business, to assist in selecting a career, to prepare for business ownership, and to become a more knowledgeable consumer.
Webster Dictionary Meaning
- Any particular occupation or employment engaged in for livelihood or gain, as agriculture, trade, art, or a profession.
- Financial dealings; buying and selling; traffic in general; mercantile transactions.
- That which one has to do or should do; special service, duty, or mission.
- Affair; concern; matter; -- used in an indefinite sense, and modified by the connected words.
- The position, distribution, and order of persons and properties on the stage of a theater, as determined by the stage manager in rehearsal.
- Care; anxiety; diligence.
More from this Section
- Standing plans
Standing plans are ongoing plans that provide guidance for activities performed repeatedly. ...
- Debt financing
Money “loaned” to an entrepreneur or business venture that must be repaid at some ...
- Visionary leadership
Although the term vision is often linked with charismatic leadership, visionary leadership ...
- Social entrepreneur
An individual or organization who seeks out opportunities to improve society by using ...
- Actual growth
Actual growth is the final actual result of growth in the Harrod-Domar model ...