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Fundamentals of Business Management

In: Business and Management

Submitted By mari9ka
Words 21383
Pages 86



Prepared by:

Prof.Dr.Gazmend Luboteni





A business is one or more individuals selling products or services for profit. Products such as athletic apparel (NIKE, Reebok, Converse), computers (Packard –Bell, Hewlett-Packard, Apple) and clothing (Levis, REI, GAP) are part of our lives. Services like information communication (America Online, CompuServe, and Microsoft), dining (McDonald’s, Burger King, Wendy’s), and car rental (Hertz, Budget, Alamo) make our lives easier. A business can be as small as an in-home child care service or as massive as Wal-Mart. Nearly 1 million new businesses are started in the United States each year, no different than Job Direct in the opening article. Most of these are started by people who want freedom from ordinary jobs, a new challenge in life, or the advantage of extra money.

Business Profit

A common feature of all businesses is the desire for profit. Profit, also called net income or earnings, is the amount a business earns after subtracting all expenses related to its sales. Sales, also called revenues, are the amounts earned from selling products and services. Expenses are the costs incurred with sales. For Job Direct, profit is the amount earned from client fees less expenses such as travel, salaries, advertising, and promotion. Not all businesses make profits. A loss arises when expenses are more than sales. Many new businesses incur losses in their first several months or years of business. Yet no business can continually experience losses and stay in business.…...

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