Buisness
Sole Proprietorship
- owned by one person who has the resources and ability to operate it
Advantages (of running a buisness by yourself)
- hours
- tax benefits
- you are the boss
- you make the decisions
- keep profit
Partnership- two or more people own the buisness
- can equally own or % (50/50, or 70/30)
Advantages (or a partnership)-
- 2 or more to take finacncial respnsibility
- time off and someone is still there to run the buisness
- division of labour (specialize in what they are doing)
Synergy(2+2=5) --> taking the talents of 2 people and getting a better product.
ex.
Edney- sings jingles
Jared- writes the jingle
--> if they work together they get the whole jingle done.
Competitive Structures
1) Comptition- companies doing the same thing and have similar prices (ie. Fast Foods)
2) Oligopoly- a few buisnesses dominate the market. Cost is too much to try and start a new buisness (ie. shoes [addidas, nike, reebok], pop [coke, pepsi, sprite, etc.]
3) Monopoly- one company owns it all. They can set the price and you have to pay it!! (ie. Microsoft)
What businesses sell?
product --> something you can touch (new backpack, car, fridge, stove, clothes, books, brush, etc.)
serivce --> can't touch (dentist, doctor, mechanic, lawyer, haircut, grass cutter, painter, etc.)
Wants and Needs
needs --> these are things that you could not survive without.
wants --> these are things that are not essential to live.
The Goal of Buisness
- be profitable/sucessful
- match customer's wants/needs to our prodcuts/services.
- successful- happy costumers, honest practices, doing the "right thing" employing people, using resources wisely.
The Role of Christians in Business
- use our talents and opportunities as a gift from God
- God glorifying
- we need to be responsible to God our neighbours and ourselves.
- are roles should be different