Text 4 . Entrepreneurial Activities

A business also known as company, enterprise, or firm is a legally recognized organisation designed to provide goods, services, or both to consumers or tertiary business in exchange for money.^. The owners and operators of private, for-profit businesses have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk. We can emphasis the following primary profit-generating activities of a business:

Agriculture and mining businesses are concerned with the production of raw material, such as plants or minerals.

Financial businesses include banks and other companies that generate profit through investment and management of capital.

Information businesses generate profits primarily from the resale of intellectual property and include movie studios, publishers and packaged software companies.

Manufacturers produce products, from raw materials or component parts, which they then sell at a profit.

Real estate businesses generate profit from selling, renting, and development of properties, homes, and buildings.

Retailers and distibutors act as middle-men in getting goods produced by manufacturers to the intended consumer, generating a profit as a result of providing sales or distribution services.

Service businesses offer intangible goods or services and typically generate a profit by charging for labour or other services provided to government, other businesses, or consumers. Organisations ranging from house decorators to consulting firms, restaurants, and even entertainers are types of service businesses.

Transportation businesses deliver goods and individuals from location to location, generating a profit on transportation costs.

Utilities produce public services, such as heat, electricity, or sewage treatment, and are usually government chartered.

E nterprises can also be profit and non-for profit orstate-owned. There is a special position in state-owned and public organisations known as a policy entrepreneur. Policy entrepreneurs play a special role in public administration. These individuals are appointed to perform specific programmes and exist at all levels of an organisation. There role requires conceptual leadership and strategic planning.

Answer the questions:

1. What do we call a business?

2. Why does a business provide goods and services?

3. Why is acceptance of risk necessary for a businessman?

4. What businesses are concerned with the production of raw materia?

5. What do financial businesses generate?

6. What does information business generate profits from?

7. What do manufacturers sell at a profit?

8. What kind of goods do service businesses offer?

9. What services do utilities produce?

10. What are policy entrepreneurs responsible for?