01 Understanding The Concepts Of Business Enterprise

1. Understanding the Concepts of Business Enterprise Lecture Notes of Business and Management Dr. Fahmy Radhi, MBA

5. Differences between goods and services Quality not easily measured Quality easily measured Labor intensive Capital intensive Small facilities Large facilities Local markets Regional, National or International markets Short response time Long response time High customer contact Low customer contact Output can not be inventoried Output can be inventoried Intangible outputs Tangible and durable outputs Services Goods

8. Circular Flow in A Market Economy

9. Market Price or Equilibrium

11. Characteristics of Market Structure Low-medium High None Level control over price Variety Specific Identical Similarly of goods/services Difficult Regulated Easy Ease of entry into industry Few None Many Number of competitors Oligopoly Monopoly Perfect Competition Characteristics

15. Characteristics of Business Forms indefinite Terminates at death or withdrawal of partner Terminates at death of owner Duration of business Difficult and expensive Complicated , depends on contract Easy, after debts are paid Termination Shareholders are liable only to extent of investment Partners have unlimited liability Owner has unlimited liability Liability for debts and taxes Complicated based on law and procedure Relatively easy, but needs written contract Simplest to establish and form Start-up and operation Corporation Partnership Proprietorship Characteristics

17. SEKIAN