Management, culture, economy, economic activity, needs, basic needs, production, barter, money, labor, goods, services, wants, demand, scarcity, primary sector, secondary sector, tertiary sector, land, capital, commerce, commercial services, banking, transport, communication, insurance, personal services, warehousing, free-market economy, planned economy, mixed economy, birth rate, death rate, migration, overpopulation, underpopulation, private sector, profit, growth, expansion, international, social responsibilities, partnerships, PLC Public Limited Companies, LTD Private Limited Companies, cooperatives, franchises
Human beings have needs in order to survive and the purpose of economic activity is to satisfy these needs by providing people with what they need. Such needs will vary from person to person because each person seeks different things at different times. Those who are poor would like to satisfy their basic needs and necessities such as food, drink and shelter. Wealthier people will never need to worry about their basic needs but they will want luxuries such as cars, TV sets, cameras, watches, etc. So it is the purpose of economic activity to provide people satisfaction by meeting their needs. The business person is always looking for opportunities to provide the goods and services which people generally need. There are some things which human beings rich and poor can't do without. There are 5 principle basic needs : food, water, shelter, warmth, clothes. No human being can survive for a long time if these basic needs are not satisfied, they are just as important for people in developed countries like Western Europe such as they are for tribal societies in the remote areas of the world.
[...] In these countries, 5-year plans were drawn and fixed the targets for the production of goods and services and fixed prices and wages of the employees for each year of the plan. The targets or the objectives weren't always met. Managers had to do exactly what the plan said even if it didn't work. Also, employees had no inceptive encouragement) to work harder as their wages were already fixed. In this system, consumers had to accept what the state provided as they were no private industries or shops. Gradually, the communist economies of Russia, China and Eastern Europe became more and more outdated obsolètes). [...]
[...] postal communication: it covers letters and other written correspondence as well as the transport of packages telecommunication: the methods of electronic communication including the telephone and all other types Insurance Insurance companies exist and offer protection against risks which manufacturers, wholesalers, retailers and the transport companies face. The risks involved are that goods, buildings, vehicles or money may be stolen, damaged or destroyed. Insurance companies collect small annual payments or premiums from a large number of businesses or companies. If companies suffer losses, theft or damaged can be compensated. Warehousing Wholesalers perform many functions which can help both manufacturers and retailers, in fact, wholesalers buy goods and store them in warehouses. [...]
[...] But in these accounts and reports, the companies do not have to reveal its trade secrets or its future plans or even what it is doing at the moment. Only the Inland Revenue FISC) wants to know about the profits in order to calculate the taxes that the businesses have to pay. Otherwise, small companies are not obliged to publish the changes in the internal organization or its turnover. However, the law obliges large companies to reveal their turnover. On the marketplace, most companies are rivals. Businesses as friends However, there is a considerable amount of cooperation between businesses especially at the local level. [...]
[...] Economic system All societies in the world face the problem of scarcity and choice. Because there are limited resources, it is necessary for each country to decide what goods and services it is going to produce. This decision will depend not only on the resources but also on the type of the economic system which operates in that country. There are in fact 3 principles ways in which a country can organize or manage its economy. Free-market economy With this system, all resources are owned by individuals who organize them to produce what people want. [...]
[...] Management and cultural aspects Development of economic activity Introduction Human beings have needs in order to survive and the purpose of economic activity is to satisfy these needs by providing people with what they need. Such needs will vary from person to person because each person seeks different things at different times. Those who are poor would like to satisfy their basic needs and necessities such as food, drink and shelter. Wealthier people will never need to worry about their basic needs, but they will want luxuries such as cars, TV sets, cameras, watches, etc. [...]
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