Chapter 1 outline 106.pdf

1 Chapter 1 outline -- What is Business? 1. Business in action?Kroger vs. Wal-Mart 2. The productive resources of business a. Land b. Labor-people who work c. Capital-equipment d. Enterprise--people who think, plan, risk 3. 3 meanings of business a. Commerce b. Occupation c. Organization 4. Business as commerce a. Demand, supply, and market price b. Profitability and Profit--the difference 5. Business and self-interest a. Can be good--competition b. Can be bad--ripoffs 2 6. Business as an occupation a. Specialization and your well-being--more skills=more pay! b. Specialization = saving costs = profitability c. The market--the "invisible hand": pursuit of self-interest in the market = well-being in society 7. Business as an organization a. Transaction costs--costs of doing business b. How to get them lower i. Organization ii. Entrepreneurs--risks 8. How businesses create ?value? (what this book is about) a. The kinds of people b. The "forces" c. The "human side" d. The "functional side" lou squyres Chapter 1 outline 106