1. Chapter 1 Characteristics of Business
©2008 Thomson/South-Western

2. Characteristics of Business
Business and Profit
Business — an organization that produces or distributes a good or service for profit
Profit — difference between earned income and costs
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Characteristics of Business

3. Characteristics of Business
THE NATURE OF BUSINESS
Business activities
Production
Marketing
Finance
Types of businesses
Industrial businesses
Commercial businesses
Service businesses
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Characteristics of Business

4. Changes Affecting Businesses
Innovation
Impact of global competition
Focusing on the right things
Achieving effectiveness — making the right decisions about products or services to offer and the best ways to produce and deliver them
Achieving efficiency — producing products and services quickly, at low cost, without wasting time and materials
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Characteristics of Business

5. Characteristics of Business
EFFICIENCY
Efficiency is achieved in three ways:
Specialization of effort
Better technology and innovation
Reorganization of work activities
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6. The Contributions of Business
Business growth and prosperity
Gross domestic product (GDP) — total market value of all goods and services produced in a country in a year
Individual well-being — home ownership, consumer products, self-improvement, savings
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7. COUNTRIES WITH LARGEST GDPs
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8. The Contributions of Business
Business ownership
Popularity of small businesses
Growth of franchise businesses
Risks of ownership
Obligations of ownership
Intrapreneurship
Studying business principles and management
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Characteristics of Business

9. Characteristics of Business
INTRAPRENEURSHIP
Intrapreneur — an employee who is given funds and freedom to create a special unit or department within a company in order to develop a new product, process, or service
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Characteristics of Business