Understanding Goods, Services, Business Structures, and Systems

Goods and Services

Consumer goods are those directly employed by individuals to satisfy a need, therefore not requiring a subsequent operation process.

Intermediate goods are those used in the manufacture of other goods, not resulting in direct use for the satisfaction of needs.

Capital goods are those that, once made, will serve to produce other goods or services.

The corresponding service is in exchange for shares or serious efforts to repair, restore, or completely clean products that have imperfections or shortcomings for use in the satisfaction of needs.

Political Structure

• Sole Proprietorships (OPEs): Have a single owner. In this case, the individual is responsible for all contributions.
• Partnerships or Limited Partnerships: Two or more partners join in this undertaking, contributing capital and responding to the amount of their donation.
• Capital Corporations: Ordinarily have many partners whose liability is limited to the value of their contribution, which is expressed in a certain number of shares.
• Limited Partnerships: These are relatively few and combine features from previous types. They distinguish between partners who contribute capital (single or limited partners) and other managers.

By Destiny of the Utilities

• For-profit
• Nonprofit

Efficiency, Effectiveness, and Efficacy

• Efficiency: Achieving the goal at minimum cost and time.
• Effectiveness: Achieving the goal without regard to costs.
• Efficacy: The degree of implementation of the objectives as a percentage.

Companies

• People: Human resources, operations, and supply.
• Normative: Accounting and marketing.
• Other Business: Finance to obtain financial resources.
• Drivers: Legal, computer, sales, and public relations.

Systems Theory

• System: A set of objects that interact with one another.
• Conglomerate: A set of objects that are not interrelated.

Principles of Systems Theory

1. Principle of Synergy: The whole is more than the sum of the parts.
2. Principle of Entropy: The tendency of systems toward disorder. It is the limit, tending to chaos.
3. Negentropy: All those acts intended to avoid entropy.
4. Recursion: This principle states that a system can be a subset of a larger system, or other systems can have subsystems inside.

Open and Closed Systems

• Closed Systems: Those that do not interact with the environment.
• Open Systems: Those that do interact with the environment.

System Variables

• Viable: When a system can exist on its own in an environment (e.g., humans).
• Nonviable: When a system cannot survive on its own.