Level 3 Article #3059 Business Education


Business Education. What is business? A business includes all the activities involved
to create and sell a product or service. The most important functional areas of business
include: accounting, finance, marketing, production/operations, and human resources management. Accounting is a field of business that records
and reports the flow of funds through a firm on a historical basis and produces important
financial statements such as balance sheets and income statements. It also produces forecasts of future conditions
such as projected financial statements and financial budgets, and evaluates the firm’s
financial performance against the forecasts. The finance area of business supports a firm
in decisions concerning the financing of the firm’s business and the allocation and control
of financial resources within the firm. Major activities of finance include cash and
investment management, capital budgeting, financial forecasting, and financial planning. The cash and investment management activities
forecast and manage the firm’s cash position and short-term and other securities. The capital budgeting activity involves evaluating
the profitability and risk of proposed capital expenditures. The financial planning process evaluates the
present and projected financial performance of the firm and projects the firm’s future
financial needs. The marketing function of business is concerned
with the planning, promotion, sale, and distribution of existing products or services in existing
markets, and the development of new products and new markets in order to better serve existing
and potential customers with quality products and services. It is also responsible for customer relationship
management, product planning, pricing, advertising, after-sale service, and market research and
forecasting. The production/operations function focuses
on the management of all activities concerned with the planning and control of the processes
producing goods or services. These activities include purchasing of raw
material and parts, product design, inventory, manufacturing processes, facilities location
and layout, quality control, and such other logistics as distribution and transportation. The human resource management function involves
the recruitment, placement, evaluation, compensation, and development of a firm’s employees. With the main goal of the effective and efficient
use of a firm’s human capital, the human resources management function supports planning to meet
the personnel needs of the business, development of employees to their full potential, and
control of all personnel policies and programs. While each of the aforementioned functional
areas within a firm used to operate somewhat independently with its own objectives and
resources, information and other computer technologies have integrated all business
functions within the firm and created something called “an Internet worked e-business enterprise.”.

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