Lesson 1 1

Course : BUS1100E Introduction to Business

Lecturer : Dr Tee Mcxin

Source: Ebert, R. J. & Griffin, R. W. (2020) Business Essentials (12th ed.). Pearson Education.
▪ Understand what is business and why we need business.

▪ Define the nature and concept of business.

▪ Identify the factors used to evaluate the performance of an economic

system.

▪ Explain entrepreneurship and describe some key characteristics of

entrepreneurial goals and personalities.

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▪ When we hear the word
‘business’, what comes into our
mind?

▪ Multinational giants like Nestlé?

▪ Large global corporations like
Apple?
▪ Local supermarket in our
neighbourhood?
▪ Your favourite fast food restaurant
chain?
▪ Family-owned business?

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▪ Business: organization that provides goods or services
to earn profits.

▪ Benefits of Businesses:
▪ Produce most of the goods and services we consume.
▪ Employ most working people.
▪ Create most innovations and provide opportunities
for new businesses, which serve as their suppliers.
▪ Healthy business climate contributes to quality of life
and standard of living of people.
▪ Business taxes help to support governments.
▪ Support charities and provide community leadership.

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▪ Goods: Tangible products such as
food, clothing, computers etc.

▪ Services: Intangible products that

can’t be held in your hand like
education, healthcare, travel,
insurance, recreation etc.

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▪ Standard of Living: the total
quantity and quality of goods and
services people can purchase with
the currency used in their
economic system.

▪ Related to financial components.

▪ Tangible. Measurable using GDP

per capita or other financial
measures.

▪ Often income based.

▪ Does not change according to

individual preferences.
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▪ Quality of life: the general well-being of a
society in terms of its political freedom,
natural environment, education, healthcare,
safety, amount of leisure and rewards that add
to personal satisfaction.

▪ Includes both financial and non-financial

components.

▪ Subjective and intangible measurement.

▪ May vary according to individual

preferences.

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▪ Revenue: The total amount of money a
business takes in during a given period
by selling goods and services.

▪ Profits: difference between a business’s

revenues and its expenses.

▪ Loss: occurs when a business’ expenses

are more than its revenues.
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▪ Stakeholders: All the
people who stand to
gain or lose by the
policies and activities of
a business and whose
concerns the businesses
need to address.

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▪ Factors of Production: resources used in the production of
goods and services.

Labour

Information
Capital
Resources

Physical Resources Entrepreneurs

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▪ Labour: (human resources) physical
and mental capabilities of people as
they contribute to economic
production.

▪ Capital: funds needed to create and

operate a business enterprise.

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▪ Physical resources: tangible items
that organizations use in the conduct of
their businesses.

▪ Information resources: data and

other information used by businesses.

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▪ Entrepreneur: businessperson
who accepts both the risks and
the opportunities involved in
creating and operating a new
business venture.

▪ Entrepreneurship: the process of

seeking businesses opportunities
under conditions of risk.

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▪ Entrepreneurship goals:
▪ seek to launch a new business with the goal of
independence.
▪ launch new businesses with the goal of growth and
expansion.

▪ Entrepreneurial characteristics:
▪ resourcefulness.
▪ a concern for good, often personal, customer
relations.
▪ have a strong desire to be their own bosses.
▪ can deal with uncertainty and risk.
▪ Passionate about their ideas and plans.
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▪ Non-profit organization: An
organization whose goals are
for the betterment of the
community, not financial
gains.

▪ Social entrepreneurship:
the process by which
individuals, startups and
entrepreneurs develop and
fund solutions that directly
address social issues.

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THE END OF
LESSON 1.

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