Chapter 1 - The dynamics of business and economics. After reading this chapter, you will be able to: Define basic concepts such as business, product, and profit; identify the main participants and activities of business and explain why studying business is important; define economics and compare the four types of economic systems; describe the role of supply, demand, and competition in a free-enterprise system; specify why and how the health of the economy is measured.
Trang 1Business in a
Changing
World
© 2015 McGrawHill Education.
Trang 2CHAPTER 1 The Dynamics of Business and Economics
CHAPTER 2 Business Ethics and Social Responsibility
APPENDIX B The Legal and Regulatory Environment
CHAPTER 3 Business in a Borderless World
Trang 3Learning Objectives
LO 1-1 Define basic concepts such as business, product, and
profit
LO 1-2 Identify the main participants and activities of
business and explain why studying business is important
LO 1-3 Define economics and compare the four types of
economic systems
LO 1-4 Describe the role of supply, demand, and
competition in a free enterprise system
LO 1-5 Specify why and how the health of the economy is
measured
LO 1-6 Trace the evolution of the American economy and
discuss the role of the entrepreneur in the economy
Trang 4
The Nature of Business
Trang 5The Goal of Business
Trang 6People and Activities of Business
Management is concerned with acquiring, developing, and using resources effectively and
efficiently The focus of all marketing activities is satisfying customers The owner is primarily
responsible for obtaining financial resources for the operation of the business, including obtaining
money and using money effectively
Trang 7Economic Foundations of Business
Trang 8Economic Systems
Trang 9Free-Enterprise System
Free enterprise allows a company
to succeed or fail on the basis of market demand
Basic individual and business rights which must exist in order to motivate companies to succeed
► Right to own property
► Right to earn profits and use
them as one wishes
► Right to determine business
operations
► Right to choose
Trang 10Forces of Supply and Demand
Supply
Demand
Equilibrium price is the price
at which the number of products supplied equals the amount of products consumers are willing to buy at
a specific time
Trang 11The Nature of Competition
Competition is the rivalry among businesses for consumer’s dollars
Trang 12Economic Cycles and Productivity
May lead to inflation – a continuing rise
in prices
May lead to recession – a decline in production, employment and income
Recessions are often characterized by rising levels of
population wants to work but is unable to find jobs
Trang 13Economic Cycles and Productivity
Severe recession may turn into a
is very high, consumer spending is low, and business output is sharply reduced
sum of all goods and services produced
in a country during a year
a nation spends more than it takes in
from taxes
Trang 14The American Economy
Trang 15Ethics and Social Responsibility in
Business