Business is a word which is commonly used in many different languages. But exactly what does it mean? The concepts and activities of business have in creased in modern times. Traditionally, business simply meant exchange or trade for things people wanted or needed. Today it has a more technical definition. One definition of business the production, distributions, and sale of goods and sarvices for a profit. To examine this definition, we will look at its various parts.
example is the convertion of iron ore into metal car parts. Next these products need to be First, production is the creation of services or the changing of materials into product. One moved from the factory to the market place. This is known as distribution. A car might be moved from a factory in Detroit to a car dealership in Miami.
Third is the sale of goods and sarvices. Sales is the exchange of a product or service for money. A car is sold to someone in exchange for money. Goods are products which people either need or whant need or whant; for example, cars can be classified as goods. Services, on the order hand,are activities which a person or a goods performs for another person or organization. For instance, an auto mechanic performs 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 activities: production, distribution, and sale. However, there is one orther important factor. This factor is the creation of profit or economic surplus. A major goal in the functioning of an american business company is making a profit. Profit is the money that remains after all the expense are paid. Creating an economic surplus or profit is, therefore, a primary goal of business activity.(taken from Business Concepts for English practise by barbara talley Dowling an marianne McDougal ) 