1. Definition of Business Business refers to the organized efforts of individuals or entities to produce and sell goods. or services for profit, satisfying the needs and wants of society. It involves the exchange of goods, services, and resources in a competitive environment. 2. Nature of Business Economic Activity: Businesses contribute to economic growth by producing goods and services. Profit-Oriented: The primary objective is to eam profits for sustainability and growth. Risk and Uncertainty: Businesses face various risks due to changes in market demand, competition, and external factors. Dynamic: The business environment is ever-changing due to technological, economic, and social factors. 3. Importance of Business in Society Job Creation: Provides employment opportunities. Economic Growth: Contributes to GDP and national development. Innovation: Promotes new products, services, and technologies. Improved Living Standards: Enhances access to goods and services. Community Development: Engages in corporate social responsibility initiatives. 4. Business Environment The business environment refers to the internal and external factors that influence a company's operations and decisions. Internal Environment Resources: Includes financial, human, physical, and informational resources. Organizational Structure: Defines roles, responsibilities, and hierarchy. Corporate Culture: Values, beliefs, and norms within the organization. Leadership and Management: Decisions and strategies made by leaders. External Environment Economic Factors: Inflation, interest rates, and market demand. Technological Factors: Advances in technology impacting operations and competitiveness. Political and Legal Factors: Laws, regulations, and government policies. Socio-Cultural Factors: Changing consumer behavior, cultural values, and demographics. Environmental Factors: Sustainability practices, natural resource management, and dimate change. Competitive Factors: Strategies and market presence of competitors.