BUSS1001 Lecture Notes - Lecture 1: Mutual Organization, Decentralised System, Profit Motive
Document Summary
Aspects of a business and its boarder definition. An organisation engaging in a specific activity profitably transforming various inputs into a diverse. The market systems it operates in and meet the needs to individuals through the market system. There are diverse range of models describing what is business, but there is not a single one that can capture all aspects of it e. g. financial definition of a business. Role in dealing with the problem of scarcity. Role of government in a mixed managed economies. Facilitate the allocate efficiently the available productive resources to satisfy needs and wants. Government legislation and laws provide the framework or system within which resources are allocated, e. g. influence market conditions. A centralized allocation of resources is where the government manages all resources. Operates on the basis of private property, voluntary exchange, competition and profit motive.
