Accounting technicians scheme west africa
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| A.1 Introduction In a free enterprise economy or a market economy, the business enterprise, otherwise known as the firm, is an important decision-making unit. The primary purpose of the business enterprise is to make profit. However, there are decision-making units or organisations that are not established for the purpose of making profit. Such organisations are referred to as not-for-profit organisations. Most not-for-profit organisations are established by government for the purpose of providing services for the good governance and administration of a country. However, there are decision-making units or organisations that are not established for the purpose of making profit. Such organisations are referred to as not-for-profit organisations. Most not-for-profit organisations are established by government for the purpose of providing services for the good governance and administration of a country. However, a growing number of not-for-profit organisations exist which are not established by government. These are known as nongovernmental organisations (NGOs). They provide a variety of services to different target groups in the society. Business enterprises or firms, governmental establishments and nongovernmental organisations are referred to generally as organisations. 3 The purpose of this section is to explain the meaning of business, the need for business, the resources of business, the objectives of business, classification of business, organisations, why business fail, the importance of profit in business, the general qualities of a good business, legal forms of business ownership and the concept of stakeholders and their expectations and effects will be discussed thoroughly. A.2 Definitions of Business Business can be defined as asocial and lawful human activity, the primary aim of which is to make profit. We can rightfully say that a business is the organized effort, or activities of persons utilizing resources within an organisational context to produce and distribute goods and services for the purpose of making private gain (profit, recognition, generate employment, etc) Briefly, business involves lawful human activities directed at the production and distribution of goods and services with the aim of making profit. Download 3.37 Mb. Share with your friends:
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