NATURE OF BUSINESS TOPIC 1

The role of the business is toproduce and sell, for a profit, the products that satisfy consumers wants and needs, and contribute to the Australian Economy.

Can be defined as the organised effort of individuals to produce and sell, for a profit and produce products that satisfy individuals needs and wants

A product is a good or service that can be bought or sold.

Are items that can be seen or touched.

They are things done for you by others.

A finished product is one that is ready for customers to buy and use.

It refers to those activities undertaken by the business that combine the resources to create products that satisfy customers needs and wants.

Is the different business acitivities businesses undertake. For eg, production, marketing and planning finances.

Production.

They are profit, Employment, Incomes, Choice, Innovation, Entreprenuership, Wealth Creation and Quality of life.

Revenue is the money a business receives as payment for its products.

Operating Expenses are all the costs of running the business except the costs of goods sold.

Profit is what remains after all business expenses have been deducted from sales revenue.

Income is money received by a person for providing his or her labour, or a business from a reture on its investments.

A wage is money received by workers, usually on a weekly basis, for services they provide to an employer. A salary is a fixed amount of money paid on a regular basis, usually fortnightly or monthly, to a permament employee of a business.