Business is a word commonly used in many different languages. But exactly what does in mean? The concepts and acivities of business have increased in modern times. Traditionally, business simply meant exchange or trade for things people wanted or needed. Today is has a more technical definition. One definition of business is the production, distribution, and sale of goods and services for a profit. To examine this definition, we will look at its various parts.
First, production is the creation of services or the changing of the materials into products. One example is the conversion of iron or into metal car parts. Next, these products need to be moved from the factory to the marketplace. This is known distribution. A car might be moved from a factory in Detroit to a car dealership in Miami.
Third is the sale of goods and services. Sale in the exchange of a product or service for money. A car is sold to someone in exchange for money. Goods are product that people either need or want for example, cars can be classified as goods. Services, on the order hand, are activities that a person or organization. For instance, an auto mechanic perfoms a service when he repairs a car. A doctor also performs a service by taking care of people when they are sick.
Business, then, is a combination of all these acivities : production, distribution and sale. However, there is one other important factor. This factor is the creation of profit or economic surplus. A major goal in the functioning of the American business company is making a profit. Profit is a the money that remains after all the expenses are paid. Creating an economic surplus or profit is, therefore, a primary goal of the bisiness activity.
Oleh : Budi (Penerbit Gunadarma)
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