FANDOM


Every business (firm) or activity is an entity composed of three factors, and functions, having them in harmony.

These factors are:
Placecustomerworker1

Facility, Customer, Employee

Place(s), i.e.the facility, premises, such as a shop, a school, an office, a farm, a piece of land, etc.

Customer(s), i.e. the buyer, purchaser, consumer, household, i.e the person or other who approves and consumes the products(goods)/services of the seller/producer, creating the supply and demand circular flow.

Worker(s), the person(s) and/or their substitutes (machines) offering the services/work in the business, producing and/or selling goods or services.

Consumer/Customer factor is the strongest of the three, which regulates the behavior of the business (see operant conditioning and reinforcement).

In amateur activities (hobbies etc) the consumer/buyer is usually the same as the worker.

Exchange of satisfaction, interdependency: buyer, <--> seller

The buyer/consumer is the cause of existence of the producer/seller and

The producer/seller is the cause of existence of the buyer/consumer.

All the above form the holotes of business, i.e. different parts joined together forming an entity different from its parts.


Links

Circular flow

Philosophy of Economics

Customer Equity

Ad blocker interference detected!


Wikia is a free-to-use site that makes money from advertising. We have a modified experience for viewers using ad blockers

Wikia is not accessible if you’ve made further modifications. Remove the custom ad blocker rule(s) and the page will load as expected.