OBJECTIVES:

Question

OBJECTIVES:
• To assess student's ability to understand the basic concepts business and the impact of business to the
society.

TutorBin · Accepted Answer

Business and Entrepreneurship
The primary distinction between an entrepreneur and a businessman is that a businessman is someone who establishes his business as a new entrant to an existing market on commercial or industrial grounds. An entrepreneur, on the other hand, comes up with a unique idea or concept for starting a business and turns it into a reality.
Many people interchangeably use the terms businessman and entrepreneur. These two terms are used to describe anyone who owns a business and makes money. There are, however, significant distinctions between an entrepreneur and a businessman. Most businessmen prioritise high-demand businesses with high profits, ignoring the uniqueness of business ideas. Entrepreneurs, on the other hand, establish start-up companies based on innovation, new ideas, or business processes. They are always willing to take risks and deal with business uncertainties.

Businessman
A businessman is someone who starts his own company as a new entrant into the market. He basically disregards the uniqueness of business ideas and instead prioritises producing high-demand products or services. As a result, a businessman must contend with fierce competition. This is due to the fact that there are already hundreds of competitors in the market doing the same thing. However, the risk of failure is low because he is following in the footsteps of others.
Above all, the main goal of a businessman is to use his human, intellectual, and financial resources in such a way that he achieves maximum output and profits.

Entrepreneur
An entrepreneur is a risk-taker who creates a new business by innovating new ideas, goods, services, and businesses. They use their skills and take the necessary initiative to identify customer needs and introduce new ideas to the market. As a result, entrepreneurs are vital to any economy.
Entrepreneurs who succeed in taking on the risks of launching startups are rewarded with profits, fame, and opportunities for continuous growth. Furthermore, failing entrepreneurship results in losses and a lower chance of survival in the markets. Entrepreneurs, on the other hand, are known for their innovative approach, as opposed to businessmen's profit-driven approach.
In summary, a businessman is someone who approaches an already existing market with a profit-oriented approach, whereas an entrepreneur's market approach is more creative and unique. Furthermore, an entrepreneur is a high-risk taker, whereas a businessman takes a comparatively low percentage of the risk of failure. As a result, these are the primary distinctions between an entrepreneur and a businessman.

Social responsibility of a business
Social responsibility requires businesses to act in ways that benefit society rather than just the bottom line, in addition to maximizing shareholder value. Social responsibility is becoming increasingly important to investors and consumers looking for investments that are not only profitable but also benefit society and the environment. While critics have long claimed that the fundamental nature of business does not include society as a stakeholder, younger generations are embracing social responsibility and driving change.
Individuals and businesses must act in the best interests of their environment and society as a whole to be considered socially responsible. Social responsibility is known as corporate social responsibility (CSR) in business, and it is becoming a more prominent area of focus within businesses due to shifting social norms. Many businesses, such as those with "green" policies, have integrated social responsibility into their business models while maintaining profitability. Social responsibility can also boost company morale, especially when employees are involved in the company's social causes.\

Forms of business ownerships
Structure is required for efficiency. Businesses would struggle to achieve the well-oiled machine status that every company strives for if they lacked structure. This structure in business is determined by the ownership style. Because no two businesses are alike, there are various types of business ownership, each with unique characteristics that make them suitable for some businesses but inappropriate for others.

Sole proprietorship 
When someone conducts business but does not register as another type of business, they are operating as a sole proprietorship. There is no separate business entity, which means that the business owner's personal and professional assets and liabilities are indistinguishable.

Partnership
A partnership, like a sole proprietorship, is the most basic type of business ownership when two or more people are involved. Limited partnerships and limited liability partnerships are the two types.
A limited partnership has one partner who has unlimited liability while the rest of the partners have limited liability. Limited liability entails limited control. Because being a partner with limited liability is less risky, they have less influence in decision-making processes.

A limited liability partnership has only one class of owners, which means that no partner bears the risk and power of unlimited liability. A limited liability partnership distributes liability among the owners, shielding them from their partners' mistakes.

Corporation
There are several different types of corporations, each with its own distinct characteristics.

C Corporation
A C corporation, also known as a regular corporation, is a separate legal entity from its owners. This means they provide the best personal liability protection.

S Corporation
An S corporation, also known as a S corp, is a type of corporation designed to avoid the double taxation that normal C corporations face.

B Corporation
Benefit corporations, or B corps, are for-profit corporations with missions similar to non-profit organisations. Their stakeholders want to provide a public benefit, but they also want to make a profit.

Close corporation
A close corporation is structured similarly to a B corporation. Many of the rules that apply to smaller businesses also apply to close corporations.

Nonprofit corporation
Nonprofit organisations work in the fields of charity, education, religion, literature, and science. Nonprofit corporations pay no state or federal income taxes because they exist to benefit the public good.
In this study, we discuss about Mc.Donalds in Malaysia, recent business decisions, firm’s performance in the recent past.

Mc. Donalds
McDonald's is the world's largest quick service restaurant chain, with over 36,000 locations worldwide and over 70 million customers served daily in over 100 countries. In Malaysia, McDonald's serves over 13.5 million customers per month in over 320 restaurants across the country. McDonald's employs over 15,000 Malaysians across the country, offering career, training, and development opportunities.
Raymond Albert Kroc was the inspiration for the creation of McDonald's®. Ray Kroc was the sole distributor of the Multimixer, a milk shake maker. Meanwhile, in the 1950s, Richard and Maurice McDonald owned and operated a hamburger restaurant in San Bernadino, California. Ray Kroc noticed how well the McDonald brothers were serving their customers using his Multimixers. He met with them and purchased the franchise to run McDonald's® restaurants from them. Ray Kroc established the McDonald's® Corporation in 1955 and opened the first restaurant in Des Plaines, Illinois. He bought out the McDonald brothers in 1961. And, as they say, the rest is history. McDonald's® grew to become the world's largest restaurant corporation. There are currently over 33,000 McDonald's® restaurants in 119 countries. Ray Kroc died in 1984, but his legacy lives on. His success story continues with the McDonald's® employee, franchisee, and supplier families. His dedication, commitment, and achievements live on in McDonald's® restaurants around the world.
In the recent press meet on Oct 12 it has come to light that McDonald’s Malaysia is not planning to increase its prices in the near future despite the rising cost of ingredients and inflation challenges. However, Melati Abdul Hai, vice-president and chief marketing officer, stated that the company will continue to review its cost structure in light of the current economic situation and fast food demand. Melati stated that the price of McDonald's meals has been rising, but at a very low rate of 1% or less, as the company prioritises consumer sentiment. This shows the social responsibility of the firm’s business. 
“It is important for us to offer good value to our customers. When they come to McDonald’s, they will get really tasty food, which are hygenically prepared at affordable prices,” she said. She went on to say that McDonald's Malaysia is currently carrying out its five-year business plan, Vision 2026, which includes the opening of 205 new outlets by 2026. Currently, the company operates over 330 restaurants and employs over 15,000 people nationwide.

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