Please enable JavaScript.
Coggle requires JavaScript to display documents.
ECONOMIC & SOCIAL IMPORTANCE OF A BUSINESS (PROFIT (DEFINITIONS…
ECONOMIC & SOCIAL IMPORTANCE OF A BUSINESS
PROFIT
PROFIT = REVENUE - EXPENSES
Return or reward that business owners receive for producing products that consumers need and want
DEFINITIONS
OPERATING EXPENSES
All the costs of running a business
REVENUE
Money a business receives as payment for its products
EMPLOYMENT
The more sold, the more jobs there are in a business
INCOMES
EMPLOYEES
WAGE
weekly
SALARY
fixed amount on regular basis
OWNERS
PROFIT
SHAREHOLDERS
DIVIDENDS
CHOICE
Consumers have freedom of choice and the opportunity to purchase a variety of products at competitive prices
INNOVATION
Through research and development, existing products are improved and new products are creates
PATENTS
Legal protection of ideas and inventions
ENTREPRENEURSHIP & RISK
ENTREPRENEUR
Someone who starts, operates, and assumes the risk of a business venture in the hope of making a profit
WEALTH
Business acitvity results in higher levels of economic growth and wealth
QUALITY OF LIFE
Businesses offer a vast range of products that improve standard of living