Fundamentals of Business and Economic Environments

📋 Course Outline

1. Role of Businesses and Not-for-profits
2. External Business Environment Sectors
3. Economic Systems and Sectors
4. Macroeconomic and Microeconomic Indicators
5. International Trade and Balance of Payments
6. Hedging and Financial Risk Management
7. Business Structures and Mergers
8. Entrepreneurship Types and Process
9. Entrepreneurial Success Factors
10. Identifying Business Opportunities
11. Business Planning and Industry Analysis

📖 1. Role of Businesses and Not-for-profits

🔑 Key Concepts & Definitions

Revenue is the money earned from selling goods and services. It represents the total income a business receives before deducting any expenses. For example, if a company sells 1,000 units of a product at $10 each, its revenue is $10,000.

Costs refer to the expenses associated with running a business. These include wages, materials, rent, utilities, and other operational expenses. Costs are deducted from revenue to determine profit.

Profit is the financial gain that remains after subtracting costs from revenue. It is calculated as Revenue minus Costs. Profit serves as an incentive for businesses to operate efficiently and innovate.