ATLAS COLLEGE OF

HEALTH SCIENCE
ASSIGNMENT FOR KNOW ABOUT BUSINESS

NAME: REYAN MUSTEFA

ID: DTR/1329/13

Submitted to : M.R ABDU submitted date : 20/12/2015

1 . Suppose " DAGOTE CEMENT MANUFACTURING" has produced Cement production in Ethiopia for
several years . Assuming the factory has Fixed cost ( $200, 000), Variable cost per unit ( $500 ), and
Selling Price $1000( SP) so much so that the factory desires to make a profit of $ 300, 000.Then
calculate:
a) what will be the number of Units ( Q )

b) Proof whether the above profit acheived or not ( using TS - TC)

Answet

Given FC=$200,000. Required A,Q=? B,TS-TC

VC=$500

SP=$1000

A,Q=FC / (SP - VC)

Q=200,000/1000-500

Q =200,000/500

Q=400 units

B.TS-TC=(P×Q)=(VC×Q)+FC

=(1000×400)-(500×400)+200,000

=(400,000)-(200,000)+200,000

=400,000-400,00

TS-TC=0, so neither profit nor loss

NB: not achieve the desired goal

2 . Mossobo Cement industry is located in the Northern part of Ethiopia ( Tigray) it has :
FC = 5, 000, 000 birr

VC = 1,000 birr

SP = 3,000 birr, then

a) What will be the number of units to produce ( Q)?

b) What will be the volume of sales at break- even point ?

C) Proof the equality of Total Sales ( TS ) and Total Cost (TC)?

d) . If the factory has Produced: I) 4000 units and Ii) 2000 units, What will be the profit and loss of the
firm ?

e) Draw the graph of the " break - even point "

Answer

A,To determine the number of units to produce (Q), we can use the formula for break-even point:

Q = FC / (SP - VC)

Where:

Q = Number of units to produce

FC = Fixed costs

VC = Variable costs per unit

SP = Selling price per unit

In this case, the given values are:

FC = 5,000,000 birr

VC = 1,000 birr

SP = 3,000 birr

Substituting the values into the formula:

Q = 5,000,000 / (3,000 - 1,000)

Q = 5,000,000 / 2,000

Q = 2,500 units

Therefore, the number of units to produce (Q) is 2,500.

b) What will be the volume of sales at break- even point ?

TS=(FC/SP-VC)

5,000,000/3000-1000

5,000,000/2000

TS=2500 per unit

C) Proof the equality of Total Sales ( TS ) and Total Cost (TC)?

TS=TC

(P×Q)=(VC×Q)+FC
(3000×2500)-(1000×2500)+5,000,000

(7,500,000)-(2,500,000)+5,000,000

TS=TC 7,500,000-7,500,00 equal

Because neither profit nor loss

d) . If the factory has Produced: I) 4000 units and Ii) 2000 units, What will be the profit and loss of the
firm ?

If the factory produces 4,000 units, the profit or loss can be calculated as:

Profit or Loss = Total Sales - Total Cost

Total Sales = SP x Q = 3,000 x 4,000 = 12,000,000 birr

Total Cost = FC + VC x Q = 5,000,000 + 1,000 x 4,000 = 9,000,000 birr

Profit or Loss = 12,000,000 - 9,000,000 = 3,000,000 birr

Therefore, if the factory produces 4,000 units, it will make a profit of 3,000,000 birr.

If the factory produces 2,000 units, the profit or loss can be calculated as:

Profit or Loss = Total Sales - Total Cost

Total Sales = SP x Q = 3,000 x 2,000 = 6,000,000 birr

Total Cost = FC + VC x Q = 5,000,000 + 1,000 x 2,000 = 7,000,000 birr

Profit or Loss = 6,000,000 - 7,000,000 = -1,000,000 birr

Therefore, if the factory produces 2,000 units, it will incur a loss of 1,000,000 birr.

e) TC TC
 Q

3 . What are the goals of business ? Describe in detail

Answer
The goals of a business encompass its overarching objectives and aims, which guide its activities,
decisions, and strategies. These goals are vital for the direction, growth, and sustainability of a business.
There are several primary goals that businesses often strive to achieve:

Profit Maximization: One of the most common goals for businesses is to maximize profits. This means
generating revenue that exceeds the costs of production, operation, and other expenses. Profitability is
crucial for a business's survival and growth, as it provides resources for investment, expansion, and
innovation.

Revenue Growth: Businesses often aim to increase their revenue over time. This can be achieved by
expanding customer bases, introducing new products or services, entering new markets, and effectively
marketing existing offerings. Revenue growth enhances a company's financial strength and
competitiveness.

Market Share Leadership: Another goal is to capture a significant portion of the market share within
their industry. Higher market share can lead to economies of scale, stronger negotiation power, and
enhanced brand recognition.

Customer Satisfaction: Satisfying customer needs and building a loyal customer base is essential.
Businesses focus on delivering high-quality products and services, exceptional customer service, and
positive customer experiences to retain existing customers and attract new ones.

Innovation and Adaptation: Businesses strive to innovate by developing new products, services, or
technologies that can meet changing customer preferences and market demands. Innovation keeps a
business relevant and competitive in rapidly evolving markets.
Employee Development and Satisfaction Creating a positive work environment and investing in
employee development are crucial goals. Satisfied and motivated employees contribute to increased
productivity, better customer service, and overall business success.

Social and Environmental Responsibility: Many modern businesses are adopting goals related to
corporate social responsibility (CSR) and sustainability. These goals involve minimizing negative impacts
on the environment, supporting local communities, and operating ethically.

Long-Term Growth and Sustainability: While short-term goals are important, businesses also focus on
long-term growth and sustainability. This includes planning for steady expansion, managing risks, and
ensuring the business remains viable for years to come.

Quality and Excellence: Striving for excellence in all aspects of operation, from product quality to
customer service, is a fundamental goal. Businesses that maintain high standards tend to build trust and
credibility among their stakeholders.

Financial Health and Stability: Maintaining a healthy financial position, including managing debt,
controlling costs, and ensuring adequate cash flow, is vital for business stability and resilience.

4 . Profit is maximized at region two, why it is not possible in " region one " and region three ? Be
reason out Profit maximization in different regions or contexts can be influenced by a variety of factors.
Let's examine why profit maximization might not be possible in "region one" and "region three" in
detail:

Region One

In "region one," several factors might prevent profit maximization:

Market Saturation: If the market in this region is saturated, meaning there is intense competition and
many businesses offering similar products or services, it can lead to price wars and reduced profit
margins. Customers have numerous options, so businesses are forced to lower prices to remain
competitive, impacting profitability.

High Operating Costs If the cost of doing business in this region is high, it could significantly impact
profitability. Factors such as high rent, labor costs, taxes, and regulatory requirements can eat into profit
margins.

Economic Conditions: If the local economy in this region is facing a downturn, consumers might cut back
on spending, leading to decreased demand for goods and services. This can lead to reduced sales and
lower profits.
Limited Market Demand: If the local market has limited demand for the products or services being
offered, there might not be enough potential customers to generate substantial profits. This is especially
true if the product or service is not aligned with the needs and preferences of the local population.

Region Three

In "region three," different factors might come into play:

Low Price Sensitivity: In this region, customers might be less price-sensitive, meaning they are willing to
pay a premium for high-quality products or services. While this can lead to higher profit margins, it
might also require businesses to invest in maintaining a superior quality level to meet customer
expectations.

Monopolistic Competition: If the businesses in this region have some level of market power and can
differentiate their offerings, they might be able to charge higher prices without intense competition.
However, true monopolies are rare and there is usually some degree of competition.

Unique Value Proposition: If businesses in this region offer unique features, benefits, or experiences
that are not easily replicable by competitors, they can command higher prices and achieve higher
profitability.

Luxury or Niche Markets: In certain regions, businesses might cater to luxury or niche markets where
customers are willing to pay a premium for exclusivity or specialty products. This can lead to higher
profits but also requires targeting a specific segment of the population.

It's important to note that profit maximization is affected by a complex interplay of factors including
market dynamics, competition, consumer behavior, economic conditions, and business strategies. The
ability to maximize profit can vary from region to region due to these influencing factors.

5 . What is the basic difference between" Stakeholders and Shareholders?

"Stakeholders" and "shareholders" are two important concepts in the business world, and while they
might seem similar, they have distinct meanings and roles within a company:

Shareholders
Shareholders are individuals or entities that own shares or stock in a company. These shares represent
ownership in the company and give shareholders certain rights, such as voting at shareholder meetings
and receiving a portion of the company's profits in the form of dividends. Shareholders primarily have a
financial interest in the company, as the value of their investment is tied to the company's performance
and stock price. Their primary concern is often the financial returns on their investment.

Stakeholders

Stakeholders, on the other hand, encompass a broader group of individuals and entities that have an
interest in a company's activities, operations, and outcomes. Stakeholders include not only shareholders
but also customers, employees, suppliers, creditors, local communities, government agencies, and more.
Stakeholders can be directly or indirectly affected by the company's actions and decisions. Unlike
shareholders, stakeholders may not necessarily have a financial investment in the company, but they
have a vested interest in the company's success due to various reasons.

6 .A business man he/ she respects the " three bottom lines" What are the three bottom lines ? If the
firm does not consider these elements, what will be the impact on the business activities?

The "three bottom lines," also known as the "Triple Bottom Line," is a concept that encourages
businesses to consider three key dimensions when evaluating their performance and impact. These
three dimensions go beyond just financial profitability and take into account social, environmental, and
economic aspects. The three bottom lines are:

Profit (Economic Bottom Line):This is the traditional bottom line that focuses on financial performance
and profitability. It includes measuring a company's ability to generate revenue, manage costs, and
produce a profit for its shareholders and investors.

People (Social Bottom Line): This dimension focuses on the company's impact on people, both internally
(employees) and externally (customers, communities, and society at large). It involves aspects such as
employee well-being, fair labor practices, customer satisfaction, community engagement, and social
responsibility.

Planet (Environmental Bottom Line) This dimension addresses the environmental impact of the
company's activities. It involves considering resource usage, pollution, waste generation, energy
consumption, and the overall ecological footprint of the business operations.

Impact of Neglecting the Three Bottom Lines:

Neglecting the three bottom lines and focusing solely on financial profit can have several negative
impacts on a business's activities:
Reputation Damage: Ignoring social and environmental responsibilities can lead to negative public
perception and damage the company's reputation. This can result in customer boycotts, loss of trust,
and difficulty attracting socially conscious customers.

Employee Dissatisfaction: Failing to prioritize the well-being of employees and provide a positive work
environment can lead to decreased job satisfaction, lower morale, and higher turnover rates. This can
impact overall productivity and the quality of products or services.

Legal and Regulatory Risks: Neglecting environmental regulations and labor laws can expose the
business to legal liabilities, fines, and penalties. Non-compliance can tarnish the company's image and
lead to costly legal battles.

Missed Market Opportunities: Businesses that do not consider social and environmental factors may
miss out on emerging market trends and opportunities. For example, there is a growing demand for
sustainable products and services, and businesses that fail to meet these demands could lose market
share.

Long-Term Sustainability: Ignoring the environmental bottom line can lead to resource depletion,
pollution, and ecological damage. This not only harms the environment but also threatens the long-term
sustainability of the business itself.

Financial Risks: Overlooking the social and environmental impacts of business operations can lead to
unexpected costs. For example, environmental cleanup costs or legal expenses resulting from poor labor
practices can negatively impact the company's financial performance.

Limited Stakeholder Support: ⁰Investors, customers, and partners increasingly value companies that
prioritize the triple bottom line. Neglecting these dimensions might lead to decreased stakeholder
support and limited access to capital.

In essence, businesses that do not consider the three bottom lines may achieve short-term financial
gains but risk long-term damage to their reputation, relationships, and overall sustainability. Embracing
the triple bottom line approach enables businesses to create value not only for their shareholders but
also for employees, communities, and the environment.

7 . What is Corporate Social Responsibility means ( CSR )?

Corporate Social Responsibility (CSR) refers to the voluntary actions and initiatives that businesses take
to contribute positively to society and the environment beyond their core business operations. It
involves going beyond profit generation and considering the ethical, social, and environmental impacts
of a company's activities. CSR is a way for businesses to demonstrate their commitment to being
responsible and contributing members of the communities in which they operate.

Key aspects of Corporate Social Responsibility include:

1. Ethical Business Practices: CSR involves conducting business with integrity and ethical principles. This
includes avoiding unethical practices such as bribery, corruption, and exploitation, and treating all
stakeholders fairly and equitably.

2. Environmental Sustainability: Businesses engage in CSR by adopting practices that minimize their
environmental impact. This could involve reducing carbon emissions, conserving energy and water,
managing waste responsibly, and supporting initiatives to protect natural resources.

3. Community Engagement: CSR entails actively engaging with local communities and addressing their
needs and concerns. This could involve supporting local education, healthcare, infrastructure
development, and community empowerment projects.

4. Philanthropy and Social Investments: Companies often contribute to charitable causes, support
nonprofits, and invest in social initiatives that address societal challenges such as poverty, education,
healthcare, and disaster relief.

5. Employee Well-being: CSR includes ensuring the well-being, safety, and fair treatment of employees.
This could involve providing a safe work environment, fair wages, training and development
opportunities, and work-life balance initiatives.

6. Transparency and Accountability:Companies engaged in CSR are transparent about their practices,
reporting, and impact. They are accountable to stakeholders and communicate openly about their social
and environmental performance.

7. Stakeholder Engagement: Businesses consider the interests of all stakeholders, including customers,
employees, investors, suppliers, and local communities, when making decisions that could impact them.

8. Ethical Supply Chain: Companies consider the ethical and social implications of their supply chain
practices, ensuring that suppliers also adhere to responsible business practices.

9. Innovation for Social Good: Companies can use their resources and expertise to develop innovative
solutions that address social and environmental challenges, contributing to positive change.

Benefits of CSR include enhanced brand reputation, increased customer loyalty, improved employee
morale, better relationships with communities, reduced risk of legal and regulatory issues, and access to
socially conscious investors. CSR also aligns with changing consumer expectations and regulatory trends
that emphasize ethical and sustainable business practices.
While CSR is voluntary, many businesses recognize its importance in building long-term success and
contributing to the well-being of society. Companies vary in the extent and nature of their CSR
initiatives, and the specific focus areas may differ based on industry, location, and company values.

8 . State the difference between "goods and services" in deatail

"Goods" and "services" are two fundamental categories of offerings in the world of business, and they
have distinct characteristics. Here's a detailed comparison between goods and services:

Goods

1. Tangibility: Goods are tangible products that can be seen, touched, and physically held. They have a
physical form and can be stored, shipped, and displayed.

2. Nature:Goods are often physical items that are manufactured, produced, or grown. They can be raw
materials, finished products, or intermediate goods used in various production processes.

3. Ownership: Goods are transferable assets that can be owned and exchanged. When you buy a good,
you have ownership of a physical item.

4. Production: Goods are typically produced, manufactured, or extracted through various processes. The
production of goods often involves raw materials, labor, machinery, and manufacturing facilities.

5. Quality Control: Quality control is crucial for goods, as they need to meet specific standards and
specifications to ensure consistency and customer satisfaction.

6. Inventory Management: Goods are subject to inventory management, including storage,

warehousing, and distribution logistics.

7. Examples: Examples of goods include clothing, electronics, furniture, automobiles, food products, and
raw materials like lumber or iron.

Services:

1. Intangibility: Services are intangible offerings that cannot be physically held or touched. They
involve actions, experiences, or performances rather than physical products.

2. Nature:Services are actions or tasks performed to fulfill a specific need or demand. They are often
related to expertise, skills, knowledge, or labor.

3. Ownership: Services cannot be owned in the same way as goods. Instead, customers pay for the
experience, expertise, or assistance provided by the service provider.
4. Production: Services are performed by people or automated systems. They may involve interactions,
expertise, creativity, or problem-solving.

5. Quality Assessment: Quality in services can be more subjective and is often evaluated based on
customer satisfaction, experience, and outcomes.6. **Instant Consumption:** Unlike goods that can be
stored, services are often consumed at the same time they are provided. For example, a haircut or a
theater performance is consumed immediately.

7. Examples: Examples of services include haircuts, healthcare, education, consulting, entertainment,

transportation, and financial services.

9 . Internationally belived that business has three common forms of business, what are they? State in
detail

Internationally, three common forms of business structures or entities are often recognized. These
structures define how a business is legally organized, owned, and operated. The three common forms of
business are:

1. Sole Proprietorship:

- Ownership: In a sole proprietorship, the business is owned and operated by a single individual. The
owner has complete control over the business's operations and decision-making.

- Liability: The owner has unlimited personal liability for the business's debts and obligations. Personal
assets can be at risk if the business faces financial troubles.

- Profit and Loss: The owner receives all profits generated by the business but is also personally
responsible for any losses.

- Taxation:Profits from the business are typically reported on the owner's personal income tax return.
The business itself is not a separate taxable entity.

2. Partnership:

- Ownership: A partnership involves two or more individuals who agree to jointly own and operate a
business. Partners contribute resources, share responsibilities, and make decisions together.

- Liability: In a general partnership, partners have unlimited liability for the business's debts. In a
limited partnership, there are general partners (with unlimited liability) and limited partners (with
liability limited to their investment).
 - Profit and Loss: Profits and losses are typically shared among partners based on the terms of the
partnership agreement.

- Taxation: Partnerships do not pay taxes at the entity level. Instead, profits and losses are passed
through to the partners, who report them on their personal income tax returns.

3. Corporation:

- Ownership: A corporation is a legal entity separate from its owners, known as shareholders.
Shareholders invest in the company by purchasing shares of stock.

- Liability: Shareholders have limited liability, meaning their personal assets are generally not at risk
for the company's debts and liabilities.

- Profit and Loss: Profits and losses belong to the corporation. Shareholders may receive dividends
based on the number of shares they own.

- Management: Corporations have a board of directors elected by shareholders to oversee major

decisions. Officers and employees manage day-to-day operations.

- Taxation: Corporations are subject to corporate income taxes on their profits. Shareholders are also
taxed on dividends received. This is often referred to as "double taxation."

Each form of business structure has its own advantages and disadvantages. The choice of structure
depends on factors such as the owner's goals, risk tolerance, the complexity of the business, liability
concerns, and tax implications. It's important to choose the structure that aligns best with the business's
needs and the legal and financial considerations of its owners.

10. In dental business practice the following key points must be included:
Team building

Scheduling

Patient communication

Patient confidentiality

Create culture
Financial management

Marketing ( includes seven P's) . Then explain them in a clear concept

Certainly! In a dental business practice, the key points you've mentioned play crucial roles in ensuring
the smooth and successful operation of the practice. Let's break down each point in detail:

1. Team Building:

Building a cohesive and efficient team is essential in a dental practice. This involves hiring skilled
professionals, promoting collaboration, providing ongoing training, and fostering a positive work
environment. Effective teamwork enhances patient care, improves efficiency, and contributes to overall
practice success.

2. Scheduling:

Efficient scheduling ensures that patients receive timely care and minimizes waiting times. It involves
managing appointment slots, accommodating emergencies, optimizing chair utilization, and maintaining
a well-organized schedule to balance patient needs and practice efficiency.

3. Patient Communication:

Clear and effective communication with patients is vital for establishing trust and delivering quality
care. Dentists and staff should communicate treatment options, procedures, risks, benefits, and post-
care instructions in a patient-friendly manner. Active listening and addressing patient concerns
contribute to a positive patient experience.

4. Patient Confidentiality:

Maintaining patient confidentiality is paramount in healthcare. Dental practices must adhere to

privacy laws and regulations to safeguard patient information, including electronic health records,
treatment plans, and financial data.

5. Creating Culture:

Establishing a practice culture involves defining values, mission, and a patient-centered approach. A
positive culture encourages teamwork, professionalism, patient-focused care, and continuous
improvement. It influences patient satisfaction and employee engagement.

6. Financial Management:

Effective financial management involves managing expenses, billing, insurance claims, and revenue
collection. Proper accounting, budgeting, and financial planning ensure the practice's sustainability and
growth. Monitoring key financial metrics helps make informed decisions.

7. Marketing (Seven P's):

 Effective marketing helps attract and retain patients. The Seven P's of marketing for a dental practice
are:

- Product:The dental services offered, including preventive, restorative, and cosmetic treatments.

- Price: Setting competitive and transparent pricing for services.

- Place:The location and accessibility of the practice.

- Promotion: Strategies to market the practice, including digital marketing, social media, and
community engagement.

- People: The team's professionalism, skills, and patient interactions.

- Process: Streamlining patient processes from scheduling to treatment.

-Physical Evidence: The physical environment and patient amenities that contribute to a positive
patient experience.