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WHAT IS BUSINESS?

A dictionary and Thesaurus give many meanings of the noun "business":

• A trade or profession - for example, "What business are you in?"

• The purchase and sale of goods and services - for example, "Smith and I do business together".

• A commercial or industrial establishment — for example, " This business employs 400 people".

• Volume of commercial activity — for example, "Business is good at the moment"

«Commercial policy - for example, "Overcharging customers is bad business".

Other meanings exist, but they are not relevant here. So you can see the problem that needs to be cleared up before we start a study of busi­ness. What do we mean when we use the term "business"?

It is essential that our study examines all the internal and external pressures that affect the many organizations from which we earn or receive money, and all the organizations with which we spend our money either voluntarily or by compulsion.

But we cannot exclude local government which places planning and development restrictions on businesses, or national government which passes laws that affect every business, and collects taxes on profits. Trade unions influence the pay and conditions that employers provide, and pressure groups can cause firms to alter the way they make or package their products. Similarly, we must consider the impact of in­ternational organizations such as the European Community and the International Monetary Fund.

So when we think about "business", we mean commercial and indus­trial establishments and everything that affects them.

Business studies is a blend of many specialized subjects. Economics is the basis of business studies and provides a firm foundation upon which to build. Money (as represented by finance and accounting) is the language of business, and needs to be controlled and kept secure. People make business, and their behavior must be understood and influenced when possible. Laws control business and protect society from its worst excesses. Communication is the lifeblood of business and pervades every aspect of it. Mathematics and statistics are the key to understanding, describing and solving many of the problems faced by business.

For example, a company thinking about developing a new product or service ought to consider if there will be sufficient demand for it and whether the level of demand would be affected by price (economics). Can the company afford to produce it and make a profit at the price customers would be willing to pay (finance)? Has it got people with the right skills and expertise to design and make the goods (people)? Is the product covered by any special legal regulations as the upholstery or toy industries are (law)? Ought the company do some marketing research to find out what people think before they spend too much money (mathematics and statistics)? In everything mentioned here, the company will be giving and gathering information and ideas all the time (communication).

10. Define whether the statement is trueor false