Business

An economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis.

Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area. An economy may also be described as a spatially limited and social network where goods and services are exchanged according to demand and supply between participants by barter or a medium of exchange with a credit or debit value accepted within the network. A given economy is the end result of a process that involves its technological evolution, history and social organization, as well as its geography, natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions.

Relation
Basically, the role of business is to produce goods and services which consumers need. The business firm produces goods and services from the factors of production provided by society. Consumers in turn, buy these goods and services. Business firms thus contribute to the country's economic growth. One measure of economic growth is the Gross National Product (GNP), defined as the total market value of goods and services produced by a country in any given period. Consequently, to produce goods and services, the business firm has to purchase materials, components, or semi-finished goods from other producers, thereby creating a demand for the outputs of other

businesses. It has to pay wages to its personnel. These wages form the income of the workers, who in turn buy foods, clothes, and other goods and services. A business firm co-exists and interrelates with other members in the economic system. Some business firms manufacture the same products or substitutes for others. When we combine these firms as a group, we call them an industry. Thus, we may define an industry as a group of business firms offering similar goods or services. Some examples are the electronics, wood products, chemicals, and petroleum, banking and finance, and building and construction industries. Industries may be broadly classified by sectors, such as the agricultural, manufacturing, trade, construction, and government sectors. The manufacturing sectors include all industries involved in producing goods, while the trade sector includes both domestic and foreign trade.

Business and economy are closely related terms. Business is something that people do to achieve some desired ends, which could be money, personal satisfaction, spiritual satisfaction so on and so forth. Whatever the business do have its effect on the economy, for it is impossible to run a business without money. Economic environment is a very important factor in business; it is this one that prompts or stops a man from beginning or continuing his business.