Human resources Natural resources Production and Distribution Business activites are diverse and interdependent. Among the activities that bring goods and services to the ultimate consumer are the extraction of resources, manufacturing, packaging, transporting, storage, financing, promotion, provision of services and sales. A business increases output through specialization, technology, and capital investments. While some businesses organize the factors of production to earn a profit, others prganize for nonprofit social and religious goals. The goal of business is to achieve a profit.
Owners can choose to use some of their profit or go outside the company by selling stocks and bonds.
Assets Capital Entrepreneur Liabilities Net worth The Role of Government Government provides the legal and social foundation required by a market economy. It is difficult to limit the use of some goods and services to just those who pay for them. Government steps in when businesses are unable or unwilling to provide those goods and services. Private good Public good or service Legal and Social Framework Government institutions help the market economy work better. Laws and the judicial system protect consumers and producers by establishing property rights, creating fairness laws, enforcing contracts, and providing a means for conflict resolution.