Five elements that make a business
What defines a business? In [[literature/@kaufman2020The personal MBA: a world-class business education in a single volume|@kaufman2020The personal MBA: a world-class business education in a single volume]], there are 5 things that must exist for something to be defined as a business:
- Creates and delivers something of value
- That other people want or need
- At a price they are willing to pay
- In a way that satisfies the customers' needs and expectations
- So that the business brings enough Profit to make it worthwhile for the owners to continue operations
I think it is a very reasonable approach to defining what a business is.
Interestingly, it even works for startups that survive on investment. They are selling themselves (or parts), for a price investors are willing to pay.
I wonder how this works out in the case of subsidies, when the state gives money but they don't get anything in return (at least not directly).
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Aquiles Carattino
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