10/28/2024
BARTER
INTRODUCTION TO
It is the direct exchange of one goods for
BUSINESS another without using anything as money or
as a medium of exchange.
FOUNDATIONS OF BUSINESS Barter is a type of trade where goods or
services are exchanged for a certain amount
of other goods or services;
no money is involved
in the transaction.
BUSINESS
INTRODUCTION
•Business refers to an organization or enterprising entity
engaged in commercial, industrial, or professional
Over the year people have become more activities.
and more dependent on others. We can’t
produce all we need to live in this •The main goal of business is to generate profit by
society. providing goods and services.
Once people exchange the surplus goods
that they have after their own
consumption. This is called Barter
System.
2
1
10/28/2024
BUSINESS BUSINESS
Business is the exchange of goods, services or money Free Enterprise
for the mutual benefit or profit.
It means that private businesses are able to conduct
Who will produce what? business activities competitively with minimal
government regulation.
He who has skills and ability or specialization in specific
job will produce or serve or involve in that task. Inflation
International Opportunities Rate at which the general level of prices for goods
and services is rising and purchase power
As the shortage of resources and as they are not is falling.
distributed equally all over the world, people will go (example: inflation rate goes up to 2%)
across the border for international business.
5 7
BUSINESS The Core of Business
Standard of Living The human element is the core of business.
Business needs people as owners, managers,
A measure of how well a person or family is doing in employees, and consumers. People need
terms of satisfying needs and wants with goods and business for the production of goods and services
services.
and the creation of jobs. Whether business is
transacted in Bangladesh, USA, Japan or Ghana
dose not matter.
6 8
2
10/28/2024
The Core of Business The Core of Business
Employees
Owners
Employees supply the skills and abilities needed to
People, who own a business as well as those who
provide a product or service and to earn a profit. Most
invest money in one, do so because they expect to
employees expect to receive an reasonable wage or
earn profit.
salary and to be given regular increases in the amount
Managers they are paid for the use of their skills and abilities.
The person responsible for operating the business
may be the owner or a professional manager
employed by the owner. An owner-manager is also
called an entrepreneur.
9 11
The Core of Business The Core of Business
Managers (Contd...) Consumers
The owner-manager sets his/ her own objectives, A consumer is a person or business who purchases a
whereas a professional manager attempts to achieve goods or services for personal and organizational
objectives set by others. use. A business enterprise attempts to satisfy
consumer needs and desires while earning a profit.
10 12
3
10/28/2024
Business Objectives Business Objectives
Social Responsibilities
Survival In recent years, meeting social responsibilities has been
recognized as important objectives. Businesses, like each
Growth person in society, must accept their responsibilities in areas
such as pollution control, eliminating discriminatory practices
and energy conservation.
Social Responsibilities
Profit generation
Customer satisfaction13 15
Business Objectives Business Objectives
Survival Profit
Survival objective is an obvious objective. Other
objectives can be accomplished only if the business The profit objective plays the major role in
enterprise survives. business.
Business Profit
Growth
Growth is an objective because business does not The difference between business income and
stand still. Market share increase, personal and business expenses
individual development and increase productivity are
important growth objectives.
14 16
4
10/28/2024
Business Objectives Business Objectives
Activities Performed to earn Business Profit: Activities Performed to earn Business Profit:
Risk Taking Evaluation of Demand
Evaluation of Demand
Well-organized Management
17 19
Business Objectives Business Objectives
Activities Performed to earn Business Profit:
Activities Performed to earn Business Profit:
Risk Taking
Well-organized Management
Toyota invested millions of dollars in promoting and
Management of people, technology, materials and
selling small cars in the US. Today, this Japanese
capital. Efficient planning, organizing, controlling,
corporation is the largest small car seller in the US
directing and staffing can earn satisfactory profit.
market.
18 20
5
10/28/2024
Economics:
Business Objectives The Foundation of Business
Economic Profit Economics
Opportunity Cost: Something you given up in order to get The study of how a society (people) chooses to use
something else. limited resources to produce goods and services and
to distribute them to the people for consumption.
Economic Profit: What remains after the expenses and
opportunity costs are subtracted from income. This definition raises certain issues that are key to
understanding economics:
Selling Price: All costs of making and selling a product,
including taxes.
21 23
Economics:
Business Objectives The Foundation of Business
There are three factors:
Economic Profit
Resources
Opportunity Cost
Goods and Services
Mr. Rahman is working in Company X. Earning Tk 40,000/-
Allocation of Resources and Products
per month. His office is near to his house. But he could
earn Tk 60,000/- per month working in Company Y which Resources
is far from his house. His opportunity cost is Tk 20,000/-.
A nation’s resources consist of three broad areas:
1. Natural Resources 2. Capital Resources
3. Labor (Human Resources)
22 24
6
10/28/2024
Economics: Economics:
The Foundation of Business The Foundation of Business
Resources Resources
1. Natural Resources 3. Labor Resources
Resources provided in limited amounts by nature such as Represent the human talent, skills and competence available
oil, natural gas, minerals, timber and water. to a nation.
Natural resources must be processed to become a To have value in the labor force, individuals must be trained
product or to be used to produce other goods and to perform either skilled or semiskilled work.
services.
This collection of human talent is the most valuable national
Example....Trees must be processed into lumber before resource. Without human resources, no productive use of
they can be used to build homes, offices, schools, etc. either natural or capital resources is possible.
25 27
Economics: Economics:
The Foundation of Business The Foundation of Business
Resources
Goods and Services
2. Capital Resources A nation’s resources are used to produce goods and services
Goods produced for the purpose of making other types of that will meet people’s needs and wants.
goods and services. Some capital resources, called
current assets have a short life and are used up in the Needs: goods and services people must have in order to
production process. survive. Example: food, clothing, shelter, medical needs,
etc.
Such as fuel, raw materials, paper, money.
Wants: are things they would like to have but do not
Long-lived capital resources which can be used repeatedly in absolutely require for survival. Example: luxury holidays,
the production process are called fixed capital. fast foods (Burgers, Fries), etc.
Such as factory building, machineries, etc.
25 28
7
10/28/2024
Economics:
The Foundation of Business
Allocation of Resources and Products
The process of choosing how resources will be used to meet
a society’s needs and wants and it also includes the
distribution of products to customers.
Resources are Limited but Wants are Unlimited such as the
Supply of Oil, Gas and other Petroleum Products.
29
