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Friday, September 14, 2007

Motives and Functions of Business

A business (or firm) is an organization that provides products or services that customers desire. This topic describes the goal of a business, the resources available to a business, key business functions, and the business environment.

The goal of a business is to provide a product or service that is desired by customers, enabling it to make a profit. The difference between the revenue and expenses is the profit. Profit depends on the demand for the product or service, the ability to attract customers (competitiveness), and keeping expenses low. A nonprofit organization serves a specific cause and is not intended to make profits, but is run like a business.


Key Stakeholders in a Business
A. Owners:
B. Creditors
C. Employees
D. Suppliers
E. Customers
F. Interaction among Stakeholders


Source:
Introduction to Business,(2006) by Jeff Madura (4th ed.). Thomson.

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