Business Year 11 Prelim

Topic 1: The Nature of Business The importance of c ar The function of a craft in creating valuate/benefits and adding value to all the business processes A business can be defined as the organised effort of individuals to produce and sell, for a profit, the products that satisfy individuals needfully and wants. To satisfy customers needs and wants the business has to produce the products customers demand. A business makes a profit when the income earned (revenue) is greater than the costs of issue (expenses). take to be chain: Production refers to those activities undertaken by the business that liquefy to create products to satisfy customers needs and wants. All products are make from a combination of three things: 1) Natural resources: Resources supplied directly by nature. 2) Capital resources: Human-made objects that help in producing other products. 3) Labour resources: overwhelm all the human skills, as well as bodily and mental effort employ in the production process. As raw materials move along the various stages of production and are transformed into either intermediate or finished products, accordingly extra value is created or added- a process cognize as value adding. The value of production is the total value added by a producer, measured in dollar terms.

Value of Production = value of sales value of intermediate products used in production Social and Economic Roles Wealth creation: The to a greater extent that is produced the more wealth is generated within the Australian economy. In the crinkle of normal operations a business receives money from its customers in exchange for products. At the same time it must as well pay out money to other businesses to cover in operation(p) expenses. Operating expenses are the costs involved in the day-after-day operation of the business. The value added represents the wealth created by the business. This wealth is and so distributed to employees, owners/shareholders, governments, lenders and the business itself. The total... If you want to get a full essay, arrange it on our website: Ordercustompaper.com

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