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What Is Business-Passage

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33 views1 page

What Is Business-Passage

Uploaded by

hihahiha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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WHAT IS BUSINESS?

Business is a word that is commonly used in many different languages. But


exactly what does it mean? The concepts and activities of business have increased in
modern times. Traditionally, business simply meant exchange or trade for things people
wanted or needed. Today it has a more technical definition. One definition of business is
5
the production, distribution, and sale of goods and services for a profit. To examine this
definition, we will look at its various parts.
First, production is the creation of services or the changing of the materials into
products. One example is the conversion of iron ore into metal car parts. Next, these
products need to be moved from the factory to the market place. This is known as
10 distribution. A car might be moved from a factory in Detroit to a car dealership in
Miami.
Third is the sale of goods and services. Sale is the exchange of a product or
service for money. A car is sold to someone in exchange for money. Goods are products
that people either need or want; for example, cars are classified as goods. Services, on
15 the other hand, are activities that a person or group performs for another person or
organization. For instance, an auto mechanic performs a service when he repairs a car. A
doctor also performs a service by taking care of people when they are sick.
Business, then, is a combination of all these activities: production, distribution,
and sale. However, there is one other important factor. This factor is the creation of
20 profit or economic surplus. A major goal in the functioning of an American business
company is making a profit. Profit is the money that remains after all the expenses are
paid. Creating an economic surplus or profit is, therefore, a primary goal of business
activity.

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