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Contents

1. Introduction to business matters

2. Basic economic concepts

2.1 Being part of the economy

2.2 Scarcity of resources and opportunity cost

2.3 Economics is the study of economic decisions

2.4 Exchanging goods and services creates a circular flow and division of labour

2.5 Different economic systems

2.6 Supply and demand: households, businesses and the government meet in the market

2.7 Competition in the market

3. Focus on different types of businesses

3.1 Businesses combine different factors of production

3.2 Businesses operate in the primary, secondary and/or tertiary sector

3.3 Businesses can be profit-oriented or not-for-profit

3.4 Businesses come “in all sizes”: large and small

3.5 Businesses may be local, national or international

3.6 Businesses operate in an environment – stakeholders are important

4. Forms of business ownership and sources of finance

4.1 Sole proprietorship / sole traders

4.2 Partnership

4.3 Corporations

4.4 Summary: Overview of forms of business ownership

4.5 Overview of sources of finance

4.6 The choice of the source of finance

5. Marketing

5.1 What a product is

5.2 Objectives of marketing

5.3 Product orientation versus market orientation

5.4 The need for more responsibility and sustainability

5.5 Market research

5.6 Market segmentation and targeting strategies

5.7 The marketing mix

6. Accounting – keeping record of business transactions

6.1 What a balance sheet is

6.2 Other components of the financial statement of a business

6.3 What can be learnt from reading a balance sheet and an income statement

6.4 Types of accounting

6.5 Analysis of financial statements

7. Personnel management – because people matter

7.1 People are crucial for a business – the right people even more so

7.2 Elements of personnel management

7.3 Motivating people

8. Writing a business plan

8.1 What a business plan is

8.2 Why and for whom a business plan is written

8.3 The structure of a business plan

8.4 Why businesses fail

8.5 Why businesses succeed

9. Case study – applying the knowledge of business and economic concepts

9.1 DO & CO, an international business that was started in Austria

9.2 Solutions to the assignments for revision and analysis

10. Appendix

10.1 Suggested readings

10.2 Index

Introduction to Business and Economics

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