 Foundation of Business

Human needs are unlimited. Human can fulfill their unlimited needs with the supply of products and services by
business. Business can help us to get different products / services from manufacturer and service provider. In
addition, business helps us to earn profit. Therefore, nobody should wait for job only and if you have, some ideas
about business so you can be easily start business and help to be self-dependent. To start any business successfully
peoples off course want to get some concepts, objectives, features, requisites etc. about business. In our society
some people don’t want to do their jobs under supervision of any manager. This group of people always wants to
be boss not subordinate. Business is only the field which can help anybody to be the boss in their own field. From
this chapter anybody can get some ideas about business, and its features, objectives, scope, requisites etc.

Business is a process which can help us to earn profits and exchange mutual benefits. Why we do business? Off
course there are some specific reasons or objectives behind this question. Mainly we do business for profits, besides
this business can helps to survive our life style and ensure to assign our responsibility for the society.

Business is the exchange of goods, services or money for mutual benefit or profit. Literally speaking business
means business. In simple words, business means the state of being busy. Broadly, business involves activities
connected with the production of wealth. It is an organized & systematized, human activity involving production
& purchase of goods & services with the objective to selling them at a profit. According to prof. Own, “Business is
an enterprise engaged in production & distribution of goods for sell in market or rendering services for a price
finally, we can tell that business concerns with buying & selling goods, manufacturing goods or providing services
in order to earn profit.

 Income Statement
The Income Statement is one of a company’s core financial statements that shows their profit and loss over a period
of time. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating
and non-operating activities.
The income statement is one of three statements used in both corporate finance (including financial modeling) and
accounting. The statement displays the company’s revenue, costs, gross profit, selling and administrative expenses,
other expenses and income, taxes paid, and net profit, in a coherent and logical manner.
The statement is divided into time periods that logically follow the company’s operations. The most common
periodic division is monthly (for internal reporting), although certain companies may use a thirteen-period cycle.
These periodic statements are aggregated into total values for quarterly and annual results.
This statement is a great place to begin the financial model, as it requires the least amount of information from the
balance sheet and cash flow statement. Thus, in terms of information, the income statement is a predecessor to the
other two core statements.

 Rights under the Private Enterprises

Rights and Obligations of a Private Enterprise

Article 20. Investors in a private enterprise shall hold legal title to its property and such property may be inherited
in accordance with the law.

Article 21. Within the area of its production and business activities a private enterprise shall be entitled to the
following rights;

(1) The proprietary right of use of its approved and registered name within the prescribed scope of use;
(2) The right of autonomy of operations within the approved and registered scope;
(3) The right to decide its organizational structure and the employment or dismissal of its personnel;
(4) The right to decide its wage system and method of profit distribution;
(5) The right to fix price and fee standards for its products in accordance with State provisions on price control;
(6) The right to conclude contracts;
(7) The right to apply for patent and trademark registration.

Article 22. a private enterprise may, in accordance with the provisions of State laws and statutory regulations,
establish a Sino-foreign joint equity enterprise or Sino-foreign co-operative enterprise with a foreign company,
enterprise, other economic entity or individual, or engage in commission processing, sample processing,
commission assembling or compensation trade.

Article 23. Within the area of its production and business activities a private enterprise shall bear the following
obligations;

(1) The obligation to abide by State laws, statutory regulations and policies;

(2) The obligation to pay tax in accordance with the law;

(3) The obligation to accept supervision and control by relevant State organs.

Article 24. A private enterprise shall establish a bank account with a bank or other financial institution in
accordance with relevant State regulations and may lodge a loan application if able to meet the prescribed
requirements.

Article 25. Except if State laws or statutory regulations stipulate otherwise, no unit shall be permitted to use any
method to require a private enterprise to provide it with financial resources, material resources or manpower. In
the event of an attempt to apportion the resources of a private enterprise, the private enterprise shall have the right
of refusal and the Administration for Industry and Commerce shall have the right to halt any attempt at
apportionment.

Article 26. Except if confiscated or revoked by an administration for industry and commerce in accordance with
legal procedure, the Corporate Business License or Business License of a private enterprise may not be confiscated
or revoked.

 Responsible of Entrepreneur
When starting a business you should try the best to your customers, employees, society, the environment and
yourself. As a human being and a member of society you have several responsibilities, both with people around
you as to the environment and yourself. When you decide to be an entrepreneur, these responsibilities change
since, as a business owner, (and therefore employer and seller of goods or services) you have the opportunity to
generate a real impact on others. How would the Uncle Ben, Spiderman, “with great power comes great
responsibility”.
To be a successful entrepreneur you must fulfill your responsibilities towards these “public” Five:

1. Your clients.

Richard Branson, CEO of Virgin Group, its business strategies based on the client, and always trying best to satisfy
it. Successful companies do too and so have achieved success over the years.

Your responsibility is to offer customers the highest quality in your products and services provide the best care and
never lie to get a sale. A good entrepreneur is honest and gives a good price / benefit. Never use marketing to
deceive or sell false expectations. Fulfills its promises and is willing to go further than usual to get loyalty and
customer satisfaction.

2. Your employees.

By the time you hire your first employee, you are accepting a huge responsibility: professional development and
job satisfaction of a person depends largely on you and your company.

Therefore, as an entrepreneur and employer you should try to provide a healthy working environment, which
respects each person and their opinion is considered. Listen to all your collaborators and worry about their welfare.
Remember that they are working for your company exists and is profitable and that as better feel, the better they
will do their job.

3. Your company Entrepreneurs are those who build the wealth of a country;

they are generating jobs and income. Therefore, from the moment you start your business, you must create an asset
to society, either providing services or products to meet needs or developing solutions to problems like pollution,
poverty and low education.

Along with your mission must be focused on creating some kind of good, you also have to comply with your legal
and tax responsibilities. Make sure your company complies with all laws operating within its competence and pay
the taxes that apply to you (although it is also important to have an intelligent system of payments and
deductions).

A good way to go when developing your business idea is to think: What problems does my country and how I can
help solve them in a sustainable way? Now, if your company is not focused on social or environmental goals, then
it includes some shares of corporate responsibility in your model. It can be from donating money to charities to
activities such as planting trees or recycle waste.

4. environment.

Global warming and climate change are not “words” are realities that we are still in time to lessen their impact. As
an entrepreneur, in addition to starting a business to help reduce pollution or encouraging recycling, you also have
the opportunity to adopt a “green” mentality in your company and permearla all your collaborators.

Start by recycling paper, making the most of digital way and reusing the recording sheets. Places to separate
garbage dumps and avoid using disposable plates, especially Styrofoam. Implements energy saving systems such
as LED lighting, and invite your team to turn off lights and equipment when not in use. Another idea is to
encourage the use of bicycles and shared in your company cars. In addition, invite them to perform activities such
as planting trees.

5. With yourself.

One way to transcend in life is creating things that remain over time, and one of them is a successful business that
has a positive impact on society. So if you betting entrepreneurial career, make sure you’re following your passion
and working on what you love. No point having a business that earns you money if you are not happy with
yourself.

It is also important to undertaker’s aware of the risks and sacrifices, but also your health and happiness come first.
Prevents wear you more and that stress affects your whole life. Do not let exercise, to feed healthily and sleep 7 to 8
hours a day. It also seeks a balance in your life and work: do not neglect your family, meet occasionally with your
friends and take some a deserved vacation.