A business is basically an entity where individuals work as part of a group. In a business, individuals work either to create and sell goods or services to consumers. Others also purchase the goods and services sold by the business. In order for a business to make money, it must generate an income from the sale of its goods and services or the service rendered by its employees.
The success of a business lies in the firm’s management of its resources (its capital), the allocation of its assets for its working capital, and the determination of the allocation of capital among its various business activities. Other factors that affect the success of a firm include the existence of goals or objectives of the enterprise, the existence and size of market players, the availability of raw materials, and the accessibility of finance. Each of these factors has an influence on the performance of the enterprise. Some of these factors may be taken into account at the time the enterprise is established while some may not.
The firm establishes its objectives. These objectives are usually long-range, but they may also be short-range. The enterprise then determines how best to attain its objectives. A business enterprise may carry on any number of these processes. These include the following: identifying problems, devising solutions to the problems identified, marketing its products and services, consolidating its assets, and developing and expanding the enterprise.