What is a Business?
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In this unit, we discussed what makes a business a viable enterprise, and what “counts” as a business. We all come in contact with businesses every day, many without even realizing.
Think about a single day this week, and describe the businesses you interacted with. Think about what you ate, where you went, how you got there, the technology you used to get things done, etc. Then, categorize the businesses on your list into either for-profit or not-for-profit/nonprofit businesses, and describe whether the businesses sell products or services.
What kinds of businesses, based on your list, do you interact with most often? Do you see a pattern? What other types of businesses do you frequent not on this list?
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In this unit, we learned the foundational concept of what makes a business, well, a business. At its core, the existence of a business is to combine all factors of production (i.e., resources, labor, capital, and entrepreneurship) to satisfy the needs and desires of others.
That said, there are two types of businesses, a for-profit in which shareholders and creditors of the established business benefit from the growth of the business wherein excess profits can be paid back in dividends and interest. Whereas a non-profit is first treated differently in government regulation and taxes, but also its core concept is to provide a service or good, however, after paying operational expenses, excess profits in non-profit entities are either reinvested into the establishment or given raises to employees.
Throughout one’s life, a person interacts with different businesses. In my case, I have had multiple interactions with various businesses in the last 24 hours.
Furthermore, in the last 24 hours, I went to the gym, used an Uber to commute, went to the barbershop, and finally had a nice lunch at my local restaurant. Also, I’ve used the subway and I’m now attending Borough of Manhattan Community College (BMCC). If given the chance to categorize the businesses on whether they are no-profit or otherwise, eating at the restaurant, using an Uber, getting a quick haircut, and finally attending the gym at Planet Fitness will be considered all to be patronizing at for-profit institutions. In contrast, I’m not aware if the MTA is non-profit but it is likely to be the case since mass transit companies around the world do not make any profits and are subsidized by government funding. That aside, the MTA system is not a 501 (c) (3). Equally important, BMCC has the same status as the MTA as its sole existence relies on serving the public. However, today I got an invitation to attend New York University after graduating from BMCC which after a brief research, is a private university is a non-profit organization.
Equally important, the distinction between the last 24 hours visited businesses is that some provide services and other goods to consuming. In the case of my routine, it is obvious that I have consumed more services than goods wherein using Uber and the MTA to commute, attending BMCC, and getting a haircut from my barber are all considered a service. WHY NOT? Most of the U.S economy is comprised of services. More than two-thirds in fact.
Moreover, the only goods I have consumed in the last 24 hours are the lunch I had today and yesterday at my local restaurant which is, unlike cars or machinery, considered to be non-durable goods.
As far as if there is a pattern here, most said businesses are for-profit entities and are businesses that almost all the time produce services. Equally important, businesses I infrequently use their services are things like Amazon.com wherein their business model is to provide me the service of obtaining goods on their website. Hence, making Amazon.com a hybrid business. -
In this unit, we discussed the function of a business which is an activity that provides goods or services to consumers in exchange for profit based on the customer’s needs. You as a consumer are reading this short response because of the goods and services provided to you, such as the goods known as your laptop or phone you’re using, and the wifi or LTE service you are also utilizing. Business is everywhere but businesses need resources to stay competitive and profitable. There are four categories of resources as a means of production, known as, natural resources, labor, capital, and, entrepreneurship. For example, say someone runs a restaurant, the natural resources would be the wind to power anything electric, labor would be the cooks, chefs, and waiters, the capital would be stoves, ovens, tables, plates, etc and entrepreneurship would be the person who started or runs the restaurant. Business is all around us, the difference between the types society comes across are non-profit and for-profit businesses. A for-profit business provides goods and services, its profit is used to pay owners, partners, shareholders, employees, etc. Their profits are subject to taxation by local, state, and federal authorities. Non-profit organizations work in a similar way that for-profit organizations do, however, profits are not subject to taxation, instead, profits are used to further the organization’s mission.
Throughout communities, people interact with businesses every day. For example, I had an Interview with the business Starbucks. In order to get there, I went onto the service provided to me by Apple on my iPhone, known as Apple maps app, and searched how to get there. I then took the MTA bus, arrived, got a Dragon Fruit drink before my interview, and called the manager to let him know I had arrived. After the interview, I went to CVS and bought a few goods such as drugstore mascaras and makeup. Afterward, my mom picked me up in her Toyota Highlander and dropped me home. Of course, after being out for a bit, I was hungry and decided to bake a Red Baron’s frozen personal-size pizza from Bjs. As an external stakeholder, known as the customer, I interacted with quite a few businesses like Starbucks, CVS, Apple, and the MTA. CVS and Apple sell goods/products and are both for-profit businesses, unlike Starbucks being a Section 501(c)(3) charitable organization that provides both a good and service(the good being the item you order and service being the workers who make and provide it to you). The MTA is a different story whereas it is a public benefit corporation. Based on the businesses I visit frequently, I mainly go to businesses that market a good rather than a service. A pattern that can be noted, is that most businesses tend to be for-profit because frankly who doesn’t want to make an income on the goods or services they put their time and effort into?
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Business is the procedure that produces goods or provides services primarily for profit. There are two types of businesses: the first type is focused on profit, and the other type is non-profit, which does not focus on making money. It focuses on its customers and their needs. To produce goods, a business requires four resources: land, labor, capital, and entrepreneurship. Businesses have shaped this world more than anything ever did. They provide us primarily products and services that a human being needs in his day-to-day life.
I interact most often with companies that relate to my needs and interests. For example, I often visit restaurants, cafes, and grocery stores. I also visit companies related to my hobbies, such as art supply stores. I also visit companies that provide my needed services, such as banks, doctors, and dentists. Furthermore, I go to businesses relevant to my needs and interests. For example, yesterday I went to the dentist for my braces, and then I went to the gas station for the car. My mother called me and asked for some groceries. When I got home, I wanted to order some items online, but I realized I didn’t have enough money inside my bank account, so I went to Chase bank to deposit money.
The businesses that I mentioned are a mix of services and products. For example, the dentist, Chase, and Gas station are considered services. However, the dentist and Chase Bank are in section 501(3)(C), meaning they are tax-exempt corporations addressing a need. Their profits must not benefit private interests, such as the creator, shareholders, or persons directly or indirectly controlled by said organization. On the other hand, the grocery store and Amazon are for goods/products and are both for-profit businesses. A gas station is also considered a profitable business.
Businesses have shaped this world more than anything ever did. They provide us primarily products and services that a human being needs in his day-to-day life.
Due to businesses, one can get commodities manufactured in other countries from nearby stores and shops. Businesses are the backbone of any economy. We had already witnessed this during the covid outbreak when most of the businesses struggled, and economies collapsed by default.
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I agree with you; at first, you may not notice everything you do in business; possibly because people are accustomed to the daily routine, you may not see how much you spend during the day… Everyone’s life revolves around business. When you look closely, the basic purpose of most businesses is to earn money in some form. Of course, no firm can prosper if it does not suit the wants of its customers.
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In this unit I learned that business is the process of making goods for the consumer. I didn’t think about it, but it’s true, everything artificial that we see around is the products of different businesses. We use the services of various businesses all our time. For example, when I go to a coffee shop and order coffee, I don’t think that the final result, that is, a cup of coffee, is the result of many businesses that were involved in order for me to drink coffee now. Supply of coffee beans, cups, straws, lids, coffee shop decorations, lighting and so on, you can list for a very long time. These are all the merits of various businesses. I use businesses all the time to satisfy my needs. Even when I’m typing this text, I’m using Apple service. I often use the subway or bus, which are branches of the MTA which is a non-profit organization, since their goal is to take a person to the right place for a low price. Often, transport companies working for the general public (state-owned) do not receive profit, but carry out a social mission, only private companies are assigned to receive money. I often go to the grocery store (it is a for-profit business, as it provides an opportunity to choose products, providing various businesses involved at once. The goal of grocery stores is to make money, as stores buy products in bulk and then increase the price of individual products). Yesterday I visited a restaurant that is for profit because their goal is to make money. Only some catering places identify themselves as non-profit businesses, such as charitable organizations. The difference between for-profit and non-profit business is that that non-profit seeks to meet the social mission, while for-profit businesses are fixated on generating income.
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