Business in Society

Nature of Business

· Each day we deal with hundreds of business directly and indirectly, businesses like Coles, Bi-Lo and Woolworth’s.

· The products we buy each day are most likely to have been manufactured by a cooperation of businesses.

· Transadelaide, the ABC and the department of tourism are some very large government owned businesses. These businesses can be classified as statutory authorities, which means that they were created by the statute (act of federal or state parliament).

· The Catholic Church is a non-profit organization but they own the St. Vincent De Paul, which sells second hand clothing and other items to people who are short on money.

· Another company like this is Community Aid Abroad which sells products made by people in poor countries.

What is a Business
· The word business is used in different ways. It is used both to describe an economic process and an enterprise engaged in economic activity.

· In economic terms business applies to the process of exchanging and creating economic values and has been defined as the purchase and sale of goods or services in an attempt to make a profit.

Why Businesses Exist?
· Businesses exist because people or organizations see the opportunity to make money.

· Making money is of course the op priority in business.

· Businesses are set up by people in the belief that they will gain a better income than if they simply invested their money in a bank.

· Business is about the creation of wealth, not about buying and selling companies set up by other people.

· Governments run businesses, cases like the Australian Broadcasting Association and Transadelaide compete successfully with privately owned businesses.

· An example is that two companies, Serco the private company and Transadelaide the government owned business, run the buses.

· The government owned businesses (transadelaide) are expected to run certain services for the public, like public holiday bus services, later bus services and Sundays.