Business & Enterprise Introduction

Learning Intention I will learn that business & enterprise are two different, yet connected ideas I will learn that business & enterprise are two different, yet connected ideas I will learn that businesses exist for a variety of reasons and have significant impact on the economy I will learn that businesses exist for a variety of reasons and have significant impact on the economy

What is business Brainstorm as a class. What do you know? Brainstorm as a class. What do you know? Can you think of any businesses in the bible? Can you think of any businesses in the bible?

Definitions Business Business a person, partnership, or corporation engaged in commerce, manufacturing, or a service; profit-seeking enterprise or concern. a person, partnership, or corporation engaged in commerce, manufacturing, or a service; profit-seeking enterprise or concern. Enterprise Enterprise a project undertaken or to be undertaken, esp. one that is important or difficult or that requires boldness or energy a project undertaken or to be undertaken, esp. one that is important or difficult or that requires boldness or energy

Biblical businesses In groups of 2, research a business that you can think of in the bible. In groups of 2, research a business that you can think of in the bible. Outline of the story Outline of the story What the business was What the business was How they would have gone about their business dealings How they would have gone about their business dealings Lesson in regards to business Lesson in regards to business Lesson in regards to morality Lesson in regards to morality

Why do businesses exist? Money Money Increases standard of living Increases standard of living Gives people Jobs Gives people Jobs Social network Social network Keeps the economy growing Keeps the economy growing

Economic benefits Circular Flow of Income model Circular Flow of Income model Explain in your own words what this model shows us about Business’ role in the economy Explain in your own words what this model shows us about Business’ role in the economy

Business Objectives Financial Financial Social Social

Financial Objectives Improves a business or keeps it operating Improves a business or keeps it operating Needs to be able to be measured Needs to be able to be measured So that the actual result can be compared with the goal or expected result So that the actual result can be compared with the goal or expected result

Financial Objectives  The usual, long term financial objective of a business is to maximise profits.  The objective of maximisation of profits is expressed in the form of achieving a certain percentage rate of return on capital – (Net Profit/Capital) x 100 = %

Financial Objectives A business can also set short and medium term financial objectives A business can also set short and medium term financial objectives Short term usually means 1 to 3 years Short term usually means 1 to 3 years Medium term usually means 3 to 5 years Medium term usually means 3 to 5 years Long term usually means 5 to 10 years and beyond Long term usually means 5 to 10 years and beyond

Short Term Financial Objectives The short to medium term objectives of a business may include: The short to medium term objectives of a business may include: Maximisation of market share Maximisation of market share Breakeven in its first year of operation Breakeven in its first year of operation Survival during difficult times. Survival during difficult times.

Socially Responsible Objectives Socially responsible conduct is the obligation that we, as people, have to behave justly towards each other and the obligation we have to future generations Socially responsible conduct is the obligation that we, as people, have to behave justly towards each other and the obligation we have to future generations

Socially Responsible Objectives A socially responsible objective of a business is a goal that is intended to contribute to the well being of the community to advance the cause of justice or encourage the use of moral values such as honesty. A socially responsible objective of a business is a goal that is intended to contribute to the well being of the community to advance the cause of justice or encourage the use of moral values such as honesty.

Socially Responsible Objectives The achievement of these types of goals by a business is known as corporate social responsibility (CSR). The achievement of these types of goals by a business is known as corporate social responsibility (CSR).

Socially Responsible Objectives  A business owner may set strong socially responsible objectives, such as:  Protection of the environment  Ethical conduct  Support for other people

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