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The Nature of Business

Essay by   •  July 31, 2017  •  Coursework  •  604 Words (3 Pages)  •  795 Views

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The Nature of Business[pic 1]

The Nature of Business

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The Role of Business in Society| p.6 - 12

Complete all questions on this document. Then print it out and paste it in your book.

  • Why are businesses so important for employment?
  • Because then there are many more jobs available for the community and country where citzens are being paid
  • They are then able to offer the community with a diverse range of goods and services as they have different roles to support the business
  • Provides a source of income
  • Provides skill for employees
  • They employ over 12 million Australians each year
  • What is meant by:
  • Economic Role?
  • Is the business being environmentally safe? E.g using recycling and trying to use as little paper and waste as possible
  • Businesses also pay tax to help out the economy  (financial impact of the economy)
  • Social Role?
  • To ensure that the employees are being employed correctly
  •  how businesses interact with societies and communities responding to their needs and wants
  • How should a business be managed?
  • The business should be run ethically
  • Ensuring their consumers are getting their money’s worth
  • Clear management procedures and policies
  • Equality for employees
  • A business should be ensuring that their employees are safe and not being expatiated \
  • Business management model- CEO  Managers  Frontline Team
  • “Businesses must be accountable to their consumers”. What does this mean?
  • Providing sound products, deliver what is expected
  • Ethical factors
  • Not engaging in  false advertising

This means that businesses have to be liable for the consumers and their products. For example- if Woolworths is selling lettuce with salmonella in it, then their consumers end up sick, woolies is accountable for them getting sick and is help reasonable for that.

The Key Roles of Business

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Task: Read in pairs pages 6-12 of the textbook and make summary points on the 8 key roles of business in the table below:

Key Business Role

Summary

Profit

  • Difference between income (employees) / revenue (business) earned and total expenses
  • The goal of most businesses
  • Level of profitability is measured by the return of the investment e.g. shares

Quality of Life

  • Products that can improve your life e.g. convenience
  • Technology can improve the efficiency of a business

Business research and development has also contributed to a significant improvement of the quality of life, improve the way of the living for humans. E.G the iphone

Wealth

The aim of a business to ultimately to make money and a profit. They could increase business strategies, change management of business in hope to increase the value of their organisation.

Entrepreneurship

An Entrepreneur is someone who is willing to take a risk in their idea and start out a business from scratch.

Innovation

The process of improving the features of a product

Choice

A business produce s good and services for consumers to satisfy their needs and wants. This in turn provides consumers with a choice.

  • Providing goods and services
  • Satisfy needs and wants so consumers to work out what suits them best
  • Choice encourages competitive advantage, allows businesses to compete  price wise and product wise

Income

The money that  is received on a regular basis for work through investment

Earnings of an employee of a business

Employment

Hiring people for paid work within the business because they have an certain knowledge in a certain field of work.

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