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MEANING AND CHARACTERSTICS OF BUSINESS
•
MEANING AND
CHARACTERSTICS OF BUSINESS
•
BUSINESS STUDIES PLUS
ONE COMMERCE
•
DR SHASHI AGGARWAL
•
BUSINESS CONCEPT
1.
Every human being is required to undertake some work
for earning his or her living
2.
Some activities may be undertaken to satisfy
religious, social,cultural,psychological or sentimental reasons
3.
Some activities may be taken to earn a living called
economic activities
4.
The economic activities comprise business, profession,
employment and are taken up to earn profit or living
5.
Business activities may be classified into industry,
commerce
•
BUSINESS CONCEPT
1.
Industry converting raw materials into useful goods
whereas commerce helps in taking goods and services from producers to users
2.
Industry may be primary. Secondary or tertiary and
commerce includes trade or aids to trade
3.
A business has to undertake a number of functions
which facilitate the production and distribution of goods and services
•
ECONOMIC ACTIVITIES AND
NON ECONOMIC ACTIVITIES
• ECONOMIC ACTIVITIES:
All activities undertaken with the object of earning money are called economic
activities. Economic activities are concerned with the production and
distribution of goods and services for sale at profit. These activities aim at
proper allocation and optimum use of resources and aim to maximize the satisfaction
or profit or welfare
•
NON ECONOMIC ACTIVITIES:
- are those activities which are pursued because
of social,religious,cultural,psychological or sentimental reasons.
- These activities have no economic motive but
are undertaken to have self satisfaction
- These activities are voluntary in nature and
are undertaken at the leisure or pleasure of the persons pursuing them.
•
MEANING AND
CHARACTERSTICS OF BUSINESS
- Business literally means a state of being busy
- In a specific sense ,business refers to any
activities in which people regularly with a view to earning profit
- All those activities which are concerned with
production and or purchase and sale of goods and services with the purpose
of selling them at profit are business activities.
- The activities connected with manufacturing,
trading, finance., transport, banking, insurance,warehousing,advertising
form a part of business.
- Business may be defined as human activities concerned with
production and or exchange of goods and services with a view to gain or
profit.
•
DEFINITION OF BUSINESS
•
L.H ELANEY: BUSINESS
MAY BE DEFINED AS HUMAN ACTIVITIES DIRECTED TOWARDS PROVIDING OR ACQUIRING WEALTH THROUGH BUYING AND SELLING
GOODS
•
PETERSON AND PLOWMAN:
BUSINESS MAY BE DEFINED AS AN ACTIVITY IN WHICH DIFFERENT PERSONS EXCHANGE
SOMETHING OF VALUE WHETHER GOODS OR SERVICES FOR MUTUAL GAIN OR PROFIT.
•
CHANGING DEFINITION OF
BUSINESS IN MODERN TIME
1.
In modern times business is no longer dealing with
goods or services
2.
It can not be defined in terms of profits only
3.
Society expects an important role from business at
present
• Following activities
have also become an important part of business :
a)
Providing goods and services as per the preference
of customers
b)
Constant upgradation of technology and production
processes
c)
Make innovative products
d)
Undertake social responsibility
•
NATURE/CHARACTERISTICS
- ECONOMIC ACTIVITIES: Business is an economic activity which is undertaken with the
object of earning money or livelihood.
- Production/procurement of goods and services : business either produces or procures goods and services for
offering them to customers. Goods may be consumer’s goods or producer
goods
- Satisfaction of human needs: business involve sale or exchange of goods and services. The sale
or exchange for a price is the basic feature of business. Purchase of goods
or services for personal consumption is not business.
- Deals in goods and services on a regular basis: dealing in goods and services becomes business
only. If undertaken on a regular basis
- Profit earning: The main purpose of business activity is to earn profits
- Uncertainty of return : It is not possible to predict how much a profit a businessman will
earn
- Element of risk: Uncertainty is present in every economic activity.