Assignment Contemporary Buisness 1.1 Giving an example of a trading organisation,Explain what buisness means and how to profit is calculated.

NAME STUDENT ID CLASS CODE LECTURER DUE DATE

BAHAIKRAM BIN ABU BAKAR & MOHD ZULFADHLI HILMI BIN MUHAMAD ZAINEH 01-201304-00275 & 01-201304-00279 01-201303D250005 MR.CHANDRAN KASI 24TH APRIL 2013

What is Business? Meaning Human beings are continuously engaged in some activity or other in order to satisfy their unlimited wants. Every day we come across the word 'business' or 'businessman' directly or indirectly. Business has become essential part of modern world.

DEFINITIONS
"The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants."

"Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted."

Example; Trading Organization Gatelink sdn.bhd was set up a year ago by Ms.Zabidah it Sells a variety of Tablet Android and their accessories.For twelve-month period ending December (31december2012) the company was expected to generate a profit of RM150,000. As you can see from the scenario given Gatelink sdn.bhd is an organization operating with the objective of earning profits (in this case ,RM150,000) from the sale of multiple products which constitute of tablet android, Tablet Android accessories, as well as repair services.

Calculation of profit

1.1

The Goal of Business

As you set about starting a business, you definitely hope to make a lot of money from it. This positive gain derived from a business endeavour is known as the profit. As all businesses have the potential of generating profits, many are attracted to venture into a business no matter how small it is in scale. What does the term profit mean? Profit is the reward earned by businesspeople who are willing to take the risks in terms of money and time to offer goods or services to customers. However, in economics, profit is the difference between total revenue and total cost.
Profit = Total revenue Total cost

Total revenue = Product price X quantity sold Total cost = Business expenses such as fixed cost and variable cost Lets consider the example below.
ABZ Enterprise manages to sell up to 5000 bottles of mineral water in a single day at a price of RM1 each. On the other hand, the companys expenses which is inclusive of office rental, employees salary, and electricity and water bills amount to RM1000 per day. Calculate, based on the information provided above, the profit earned by ABZ Enterprise for a bottle of mineral water sold.

Total Revenue = Price X Quantity Sold

RM 1 X 5000 =RM5000 TOTAL COST: RM1000 PROFIT: TOTAL REVENUE TOTAL COST PROFIT: RM5000 RM1000 PROFIT: RM4000

TAX FOR EVERY PROFIT IN MALAYSIA (25%) PROFIT: RM4000 TAX: 25% NET PROFIT: PROFIT TAX NET PROFIT: RM4000 - 25% NET PROFIT: RM4000 RM1000 PROFIT: RM3000