Business Fundamentals: Operations and Legal Structures
Classified in Economy
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Business Concept and Purpose
A business concept is an entity that combines the factors of production to obtain goods and services that satisfy needs and obtain benefits.
Purpose
- Social: To satisfy needs.
- Economic: To obtain gain.
Key Elements of a Business
Technical Capital
Technical capital includes all those elements required for the development of business activity. Certain items may last long in the business, such as machinery and computers, while others are often short-lived, such as goods sold.
Human Capital
- Employee: One who serves in exchange for wages.
- Employer: The person or persons who control and direct the business.
- Owner: The individual who creates the company, bringing their capital to achieve profitability.
Core Business Functions
- Commercial: