How Business Works

The term “business” refers to an organization or commercial
enterprise engaged in producing and trading goods and services for
money. We can trace the origins of business to the very foundations
of human society. When Homo sapiens evolved, humankind left behind
the nomadic hunter-gatherer lifestyle to become farmers. This allowed
for specialization of work, where individuals would become skilled
at specific tasks to serve a particular community need. Over time, this
enabled more complex goods and services to be produced and traded
in order to provide for all members of society. Thus, human society has
been engaging in “business” for thousands of years.
Today, the world of business is inescapable—businesses nolonger are just local providers of goods and services but extend
to vast corporate enterprises operating on a global scale. At the
same time, technological advances have made it easier than ever
for entrepreneurs to start their own companies and propelled
Internet-based businesses to the heart of the global economy.
But whether businesses are small or large, public or private, for
profit or nonprofit, they each play a key role in allowing governments
to function and economies to flourish, and together they form the
backbone of the modern world. Business underpins every aspect of
the world we live in today, and understanding how it works is the
key to understanding society.
This book explains the complex world of business in a simple andgraphic way. It examines every aspect of how a business works,
including forming a company, raising capital, product development
and marketing, management strategies, tracking revenue, financial
reporting, and legal, social, and environmental responsibilities.
Through visual explanations as well as real-life examples to make even
the most complex concept immediately accessible, How Business
Works offers a clear understanding of what business is all about and
how business, in its many forms, shapes modern society