Introduction to Business
Business plays a major role within our society. It is a creative and
competitive activity that continuously contributes to the shaping of our society.
By satisfying the needs and wants people cannot satisfy themselves, businesses
improve the quality of life for people and create a higher standard of living.
It is a way for individuals to provide goods and services to consumers, and at
the same time, produce a profit for themselves. Businesses are not only
important because they provide goods and services for consumers, but they also
improve the economy and increase jobs for people within society which is an
additional fact producing a higher standard of living. To measure our societies
standard of living, we must look to our "Gross National Product", which is the
complete measure of our nations output. Unfortunately, inflation is a major
problem in our nation which often reduces the Gross National Product. Inflation
occurs when the goods become too high within society and spending decreases.
A central function within our economic system is satisfying the needs of
the consumers with the use of limited supplies. The purpose of a business is to
combine resources such as land, labor, and capital in a way that will make them
more valuable. Operating in a political and economic climate that supports
individual rights, American business has as its guiding principle the right to
private ownership and profit. The amount of goods produced depends upon the
number of resources available for use. This idea is commonly known as "Supply
and Demand". Businesses must attempt to reach an equilibri ...