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CHAPTER 1: AN INTRODUCTION TO BUSINESS AND ECONOMICS - Coggle Diagram
CHAPTER 1: AN INTRODUCTION TO BUSINESS AND ECONOMICS
Why study business
Help in choosing career
> expose wide range of employment opportunities
Become a successful employee
> gain knowledge and skills
Improve management skills
> conceptual, technical and interpersonal
Start your own business
> ways how to begin, challenges, how to overcome
Become a better informed consumer
> to get the most suitable products / services
Be a wiser investor
> be better informed and wiser making investment
Business: A definition
Business is ...
[1]
an organized effort of individuals to produce and sell
Types of business
Manufacturing business
Marketing/Trading intermediaries
Service business
produce = combine all resources
Material resources
Human resources
Financial resources
Informational resources
[2]
for a profit
[3]
the goods and services that satisfy society's needs
3 activities that must perform to be a successful business
combine all resources
satisfy customers' need
gain profit
Business cycle
Also called as
economic cycles
= the recurrence of periods of growth (expansion) and downturn (contraction) in a nation's economic activity
Business cycle:
Stages of business cycle
(1)
Peak
highest GDP
lowest unemployment rate
high consumers spending
(2)
Recession/Depression
low GDP
low unemployment rate
low household income, less buying power
(3)
Trough
lowest employment rate and GDP
the turning point
(4)
Expansion/Recovery
movement from recession/depression towards prosperity
high GDP
low unemployment rate