Chapter 8, Problem 10AA

To determine

To ascertain the elements that involves in every business and the reason for its importance.

Explanation of Solution

Every small company poses unique problems and challenges to its owner, but they all share certain elements in common. They include expenditures, record keeping, and risk. Advertising is the expense that cuts into income, particularly in business start-up. Starting a company needs to make understand to the customer about the products and services available at a price. Advertisements create a wonderful opportunity in creating awareness among the customers. Risk is the elements that involves in business, entrepreneur must also considering the risk factors that affect any company. Risk is the significant factor for the innovation.

Economics Concept Introduction

Introduction: Company also provides a source of government revenue and business contributes to government revenue through taxes such as excise duty, sales tax, income tax, proper tax, entertainment tax, etc. This helps our country prosper, as well.