Business and Your Life. You Depend on Business
Modern business is well organized and operates smoothly.
We often accept business service ,therefore, without much
thought of their importance to us. Have you ever considered
the many ways in which you depend on business? Bussiness supplies
the food you eat, the clothes you wear, the home you live in, and
the many other goods and services used in satisfying your wants.
Many times a week most of us are affected by business. During a
certain week, for example, you may make telephone calls, have your
eyeglasses repaired, ride in a tax, consult your doctor, deposit money
in your savings account, buy a new bicycle tire, or advertise for your
lost dog.
Your home, too, depends on bussiness in obtaining the goods and services
your family needs. One family reported these business activities for a certain
day : issued checks to pay automobile insurance and electric bill; bought
a rug and chairs; mailed a letter to order some books; paid the newsboy; hired
a carpenter to repair a window frame; bought a United States saving bond at the
bank; left a roll of film at the camera shop; had dinner at a restaurant.
What is Bussiness?
You frequently hear the word business in everyday conversations. Here are some
expressions using the word:"How is the bussiness this months?" "What line of business
is he in?" "Our firm does a cash business is he in?" "Our firm does a cash business."
"Business hours are 9 to 5." "John is taking a business course." Although you may have
a general understanding of the meaning of each statement, at this time you probably would
have difficulty in giving a clear-cut explanation of business.
Business means different things to different people. To one person it means producing
goods through farming, manufacturing, or some other industry. To another it means buying
and selling merchandise. To a third person it means proving service. To a fourth it means
enagaging in an occupation to earn a living. Each of these instances---making goods, buying
and selling goods, providing services, engaging in an occupation---illustrates the meaning
of business. In this article, business means the work or activities by which goods and service
are provided and obtained for money payment.
Some Activities Are Not Business
Enterprises such as the grocery store, the bus line, the newspaper, the electric company,
and the bank are readily identified as being in bussiness. They supply goods and service for
payment. What about the laundry, the television repairman, the plumber? They, too , work for
paymentand are therefore engaged in business.
Not all activities in which work is involved are classed as business. If you help a friend
repair a car or paint his house, you would be working. Unless you receive payment, however,
you are not taking part in business in the true sense of the word. Here is the test of whether
or not an activity can be classed as business: Is payment made for the goods supplied or service
performed? If money patment is required, the activity is business.
Business Transactions
Producer and consumer: To carry on business, whether it consists of producing goods, distributing
goods, distributing goods, or providing services, three factors---people, goods, and money---are
necessary.
People refers to both producers and consumers. Producers are the firms and workers who produce and
distribute goods or services. Consumers are those who buy and use goods and services.
Individual wants and community wants: Goods means the product that persons or communities buy to
satisfy their wants. Individaul wants consist of the necessities, comforts, and luxuries of life.
Goods that everyone must have , such as food, clothes, and shelter, are called necessities.
Goods and service, such as books, telephones, eletricity, and gas, which make life easier and more
enjoyable, are called comforts. Nonessential high quality goods, such as expensive jewelry, yachts,
and customer-built cars, are called luxuries.
The needs that arise when people live in groups are referred (not finish )