Define Business and Discuss Its Important

7/28/2019 Define Business and Discuss Its Important

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Define business and discuss its

important


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BUSINESS

A BUSINESS (ALSO KNOWN

AS ENTERPRISE OR FIRM) IS

AN ORGANIZATION INVOLVED INTHE TRADEOF GOODS, SERVICES, OR

BOTH TO CONSUMERS.
http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Organization


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BUSINESS

Human beings are continuously

engaged in some activity or other in

order to satisfy their unlimitedwants. Every day we come across the

word 'business' or 'businessman'

directly or indirectly. Business has

become essential part of modern

world.


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BUSINESS

Business is an economic

activity, which is related with

continuous and regular

production and distribution of

goods and services forsatisfying human wants.
http://kalyan-city.blogspot.com/2011/03/what-are-economic-activities-types-of.htmlhttp://kalyan-city.blogspot.com/2011/03/what-are-economic-activities-types-of.htmlhttp://kalyan-city.blogspot.com/2011/03/what-are-economic-activities-types-of.htmlhttp://kalyan-city.blogspot.com/2011/03/what-are-economic-activities-types-of.html


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BUSINESS

All of us need food, clothing and

shelter. We also have many other

household requirements to besatisfied in our daily lives. We met

these requirements from the

shopkeeper. The shopkeeper gets

from wholesaler.


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BUSINESS

The wholesaler gets from

manufacturers. The

shopkeeper, the wholesaler,

the manufacturer are doing

business and therefore theyare called as Businessman.


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According to Dicksee,

"Business refers to a form of

activity conducted with an

objective of earning profits forthe benefit of those on whose

behalf the activity is conducted."


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Basic forms of ownership

Although forms of business

ownership vary byjurisdiction,

several common forms exist: Sole proprietorship:

Partnership: Corporation:

Cooperative:
http://en.wikipedia.org/wiki/Jurisdictionhttp://en.wikipedia.org/wiki/Jurisdiction


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Sole proprietorship:

A sole proprietorship is a business

owned by one person for-profit. The

owner may operate the businessalone or may employ others. The

owner of the business has

unlimited liability for the debts

incurred by the business.
http://en.wikipedia.org/wiki/Sole_proprietorshiphttp://en.wikipedia.org/wiki/Legal_liabilityhttp://en.wikipedia.org/wiki/Legal_liabilityhttp://en.wikipedia.org/wiki/Sole_proprietorship


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Partnership:

A partnership is a business owned by

two or more people. In most forms of

partnerships, each partner has unlimitedliability for the debts incurred by the

business. The three typical classifications

of for-profit partnerships are generalpartnerships,limited partnerships,

and limited liability partnerships.
http://en.wikipedia.org/wiki/Partnershiphttp://en.wikipedia.org/wiki/General_partnershiphttp://en.wikipedia.org/wiki/General_partnershiphttp://en.wikipedia.org/wiki/Limited_partnershiphttp://en.wikipedia.org/wiki/Limited_liability_partnershiphttp://en.wikipedia.org/wiki/Limited_liability_partnershiphttp://en.wikipedia.org/wiki/Limited_partnershiphttp://en.wikipedia.org/wiki/Limited_partnershiphttp://en.wikipedia.org/wiki/Limited_partnershiphttp://en.wikipedia.org/wiki/General_partnershiphttp://en.wikipedia.org/wiki/General_partnershiphttp://en.wikipedia.org/wiki/Partnership


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Corporation:

A corporation is a limited

liability business that has a

separate legal personality from itsmembers. Corporations can be

either government-owned or

privately owned, and corporations

can organize either for-profit or not-

for-profit.
http://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Limited_liabilityhttp://en.wikipedia.org/wiki/Limited_liabilityhttp://en.wikipedia.org/wiki/Legal_personalityhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Legal_personalityhttp://en.wikipedia.org/wiki/Limited_liabilityhttp://en.wikipedia.org/wiki/Limited_liabilityhttp://en.wikipedia.org/wiki/Corporation


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Corporation(cont)

A privately owned, for-profit

corporation is owned

by shareholders who elect a board ofdirectors to direct the corporation

and hire its managerial staff. A

privately owned, for-profit

corporation can be either privately

held or publicly held.
http://en.wikipedia.org/wiki/Shareholderhttp://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/wiki/Shareholder


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Cooperative:

Often referred to as a "co-op",

a cooperative is a limited liability

business that can organize for-profitor not-for-profit. A cooperative

differs from a for-profit corporation

in that it has members, as opposed

to shareholders,
http://en.wikipedia.org/wiki/Cooperativehttp://en.wikipedia.org/wiki/Cooperative


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Cooperative(cont)

who share decision-making

authority. Cooperatives are typically

classified as either consumercooperatives or worker cooperatives.

Cooperatives are fundamental to the

ideology ofeconomic democracy.
http://en.wikipedia.org/wiki/Consumer_cooperativehttp://en.wikipedia.org/wiki/Consumer_cooperativehttp://en.wikipedia.org/wiki/Worker_cooperativehttp://en.wikipedia.org/wiki/Economic_democracyhttp://en.wikipedia.org/wiki/Economic_democracyhttp://en.wikipedia.org/wiki/Worker_cooperativehttp://en.wikipedia.org/wiki/Consumer_cooperativehttp://en.wikipedia.org/wiki/Consumer_cooperative


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Features of Business

1. Exchange of goods and services

2. Deals in numerous transactions

3. Profit is the main Objective

4. Business skills for economic

success

5. Risks and Uncertainties


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Features of Business

6. Buyer and Seller

7. Connected with production

8. Marketing and Distribution of

goods

9. Deals in goods and services10. To Satisfy human wants

11. Social obligations


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Exchange of goods and services

All business activities are

directly or indirectly

concerned with the exchange

of goods or services for money

or money's worth.


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Deals in numerous transactions

In business, the exchange of

goods and services is a regular

feature. A businessman regularlydeals in a number of transactions

and not just one or twotransactions.


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Profit is the main Objective

The business is carried on with

the intention of earning a

profit. The profit is a reward

for the services of abusinessman.


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Business skills for economic success

Anyone cannot run a business. To

be a good businessman, oneneeds to have good business

qualities and skills. Abusinessman needs experience

and skill to run a business.


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Risks and Uncertainties

Business is subject to risks and

uncertainties. Some risks, such as

risks of loss due to fire and theft canbe insured. There are also

uncertainties, such as loss due to

change in demand or fall in price

cannot be insured and must be

borne by the businessman.


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Buyer and Seller

Every business transaction has

minimum two parties that is a

buyer and a seller. Business isnothing but a contract or an

agreement between buyer andseller.


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Connected with production

Business activity may be

connected with production ofgoods or services. In this case, it

is called as industrial activity. Theindustry may be primary or

secondary.


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Marketing and Distribution of goods

Business activity may be

concerned with marketing ordistribution of goods in which

case it is called as commercialactivity.


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Deals in goods and services

In business there has to be dealings in

goods and service. Goods may be

divided into following two categories:-

Consumer goods : Goods which are

used by final consumer for

consumption are called consumer

goods e.g. T.V., Soaps, etc.


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Deals in goods and services

(cont)

Producer goods : Goods used by

producer for further production are

called producers goods e.g.Machinery, equipments, etc. Services

are intangible but can be exchanged

for value like providing transport,

warehousing and insurance services,

etc.


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To Satisfy human wants

The businessman also desires to satisfy

human wants through conduct of

business. By producing and supplyingvarious commodities, businessmen

try to promote consumer's

satisfaction.


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Social obligations

Modern business is service oriented.

Modern businessmen are consciousof their social responsibility. Today's

business is service-oriented rather

than profit-oriented.


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Intellectual property

Businesses often have

important "intellectual

property" that needs

protection from competitors

for the company to stayprofitable.
http://en.wikipedia.org/wiki/Intellectual_propertyhttp://en.wikipedia.org/wiki/Intellectual_propertyhttp://en.wikipedia.org/wiki/Intellectual_propertyhttp://en.wikipedia.org/wiki/Intellectual_property


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Intellectual property(cont)

This could require patents,

copyrights, trademarks or

preservation of trade secrets. Mostbusinesses have names, logos and

similar branding techniques that

could benefit from trademarking

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Define Business and Discuss Its Important