경영학원론 교재 Introduction to Business(4th ed.)
중간고사 범위(CH1부터 CH9) 요약본입니다.
What is the goal of business?
Businesses are established to serve the needs of consumers by owners who seek to make a profit. The owners may see a new opportunity to produce a product or service that does not yet exist, OR The owners may believe that they can produce and sell for a lower price than existing firms. For example: A person shopping for a service notices that they will have to drive 2 hours to get to the nearest location. They do some research and find out that there are many other people in the same predicament. Consumers clearly have a need that is not being met. After thinking about the situation they may very well decide that they should start a business providing that service in the local area.
Where Profits Come From
A business receives revenue when it sells its products or services. It incurs expenses from paying its employees and when it purchases machinery or facilities. The difference between revenue and expenses is the profits (or earnings). Profits go to the owners of the business – thus there is an incentive and reward for success.
For example, let’s say you want to tutor other students on how to develop a website because you saw an opportunity with profit potential. This year you received $5,000 for tutoring, and you paid a total of $1,000 for advertising in the school newspaper.
- Expenses 1,000
Introduction to Busine