The nature of business activity

Abstract

This chapter focuses on the nature of business activity. Many of the initial and daily activities of sole proprietorships, partnerships, companies, cooperatives, public corporations, municipalities, government departments, universities, and other business units are of a typically business economic nature. A simple example of a person wanting to establish and operate a firm may be used to provide some idea of the phenomena that may be described as typical business economic problems. When interpreting such an example, it should be borne in mind that this is a simplified representation of the real position. A scientific approach to business economics and business in general offers further advantages to a person like Adler. It will equip him with the crucially important principles and systematic method needed to face the fierce demands of business effectively. This explains the emphasis placed on the underlying laws and principles. Allowance is always made for the fact that business economic principles are to a large extent also applicable to the units encountered in the public sector.