Livestock Economics, Marketing and Business Management

NATURE OF BUSINESS OPERATIONS

• Whatever may be the form of organization business operations follow a certain common pattern.
• Operations are all directed towards the accomplishment of pre-determined business goals.
• To achieve these goals the firm requires economic resources or assets, as they are called in accounting terminology.
• Cash is an important asset. Assets are economic resources which a firm acquires in the course of its operations for the accomplishment of its goals.
• Liabilities are the equity or interests of the creditors in the assets of a firm. Assets are equal to capital plus liabilities.