Nature of Business Activity Essay Example

means that businesses may choose to invest in something that will prove profitable or beneficial in the long run.

The text discusses the concept of opportunity cost, which refers to choosing a different option that may have immediate benefits but potentially lower returns over time. It also highlights the importance of profit in business, as it serves as an incentive for production, rewards for taking risks, encourages innovation, and indicates growth or decline. Profit is calculated based on factors such as land (renewable or non-renewable used for various purposes), labor (physical and mental effort by employees), capital (resources used for product creation), and entrepreneurship (management and organization). Specialization occurs when a business focuses on producing specific goods or services, while individuals specialize in professions and departments focus on specific functions within organizations. Corporate specialization involves providing a limited range of products, regional specialization occurs when an area excels in a specific field, and national specialization happens when an entire country specializes in one area.
[Source: http://ibscrewed4business.blogspot.com/]Specialization brings several benefits like enhanced productivity, greater profit margins, improved efficiency, and standardization. However, it also comes with drawbacks such as boredom, inflexibility, limited autonomy, and high capital costs. The production and operations department oversees the manufacturing process of goods.

How it should be delivered Quality control Stock management Research and development Ordering and delivery of raw materials Marketing This department does market research and promotion of the business products Meeting customer wants and needs Using pricing strategies Promoting awareness of the product Making the product available to consumers

Finance This department takes care of providing, managing and recording financial resources.

Ensure other departments operate within budget. Recording all financial transactions. Human Resources. This department manages the business workforce. Recruitment and selection. Training and performing appraisals. http://ibscrewed4business/blogspot.com/. Sectors of Industry. Primary extracting, harvesting, and converting land resources are used in the secondary sector. Secondary converts raw materials into finished products. Tertiary, also called services, sells finished products and services to consumers.