2.The_Nature_of_Business2.The_Nature_of_Business.doc

The Nature of Business Business is a word which is commonly used in many different languages. But exactly what does it mean? The concepts and activities of business have increased in modern times. Traditionally, business simply meant exchange or trade for things people wanted or needed. Today it has a more technical definition. One definition of the business is the production, distribution, and sale of goods and services for a profit. The other definition of business is the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society’s needs. The general terms business refers to all such efforts within a society or within an industry, however, a business is a particular organization. Businesses are generally of three types. Manufacturing business (or manufacturers) is organized to process various materials into tangible goods, such as delivery trains or gloves. Service business produces service, such as fast food services or hotel services. And some firms---called middleman, are organized to buy the goods produced by manufacturers and then resell them. All three types of businesses may sell either to other firms or to consumers. In both cases, the final aims of every firm must be to satisfy the needs of its customers and to earn a profit. A person who risks his or her time, effort, and money to start and operate a business is called an entrepreneur(企业家) and he can entrust other person with his or her business, then other person can be called a manager. The success or failure of a business is, to a large extent, dependent upon how its managers perform in terms of financial controls, marketing strategies, product design, research and development, etc. A great deal of time and effort is spent by successful firms in ensuring that the right decision are made in a competitive environment with the greatest attention being paid to the immediate environment in which the firms are operating immediate to the wor