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Business
“Any organisation that fulfils itself through making a
product or service is business.” P.F. Drucker
“It is an institution organized and operated to provide
goods and services to society under the incentive of
private gain” B.O. Wheeler
Features of Business
Business is a social institutions
Dealings in goods and services
Sale, transfer or exchange
Regularity in dealings
Promoter/owner/entrepreneur
Organisation and management
Capital, investment and finance
Risk taking
Forecasting
Surplus generation
Generation of values and utilities
Essentials of successful business
Business plan
Measuring goals
Networking
Team of dedicated employees
Education and training
Tools and equipment
Scope of Business
The scope of business is very wide. It includes a large
number of activities which may be classified under two
broad categories , namely, Industry and Commerce.
Objectives of business
Organic
Human
National
Economic
Social
Organic Objective
A business enterprise consists of people organised to
conduct business activity to meet and satisfy the needs
of society. It is essentially an organic entity which has
its own infancy, childhood, adulthood, and maturity.
The first concern of a business enterprise is to ensure
its own survival for the continuance of business
activity.
Human Objectives
Fair deal to employees
Development of human resources
Participation
Job Satisfaction
National Objectives
Ensuring Social Justice
Development of small
entrepreneurs
Production according to
national priorities
National Self-Sufficiency and Export
Development
Development of skilled personnel
Economic objective
Earning of profit
Creation of customers
Innovation
Best use of scarce resources
Social objectiveSupply of desired quality of products
Avoidance of anti social and unfair trade practices
Generation of employment
Welfare of employees
Avoidance of slums and pollution
Classification of business activities
Trade
Commerce
Industry
Trade Internal or home trade External or
foreign trade
Commerce
Trade
Auxiliaries to trade
Middlemen
Transport and Communication
Warehousing
Insurance
Finance
Advertsing
Industry
Primary
Secondary
Tertiary
Primary Industries
Extractive Industries Genetic
Industries
Secondary Industries
Construction Industries
Manufacturing Industries
Benefits of business
Production of goods
Business supplies services
Creation of customers
Business has helped raising standard of living
Creation of customers
Business Organization
Introduction Business organization is an economic arrangement of
person where all efforts are directed to achieve a
common economic goal.
Characteristics of Business
Organization
Adequacy of capital
Flexibility of operation
Business secrecy
Ownership management and control
Minimum government regulations
Limit of liability
Ease in formation
Tax consideration
Bargaining power
Objectives of Business
Organization
Aiming towards consumers satisfaction
Shouldering responsibility
Creation of employment opportunity
Welfare to employment
Optimum utilization of country’s natural resources
Maximum return on investment
Social welfare
National objective
Maintaining business ethics
Maintaining law and order.
Setting up a business
organization
Evolution of objective
Formulation of plan
Suitable location, layout and volume of business
Appropriate organization and management
Optimum financing
Trouble free production and distribution system
Risk bearing and sustaining capacity
Expansion and growth orientation
Importance of business
organization
Distribution
Feedback
Finance management
Fixing of responsibilities
Minimum cost
Minimum wastage
Product growth
Quick decision
Recognition problems
Reduces the cost
Skilled salesmen
Transportation
Modern business
Old concept of business Modern concept
of business
Old Concept
Business may be defined as human activity directed
towards producing or acquiring wealth through buying
or selling goods.
Business may be defined as an activity in which
different persons exchange something value, whether
goods or services for mutual gains or profits
Modern concept of business
Business means the whole of complex of commerce and
industry-the basic industries and the network of
ancillary industries , banking, insurance ,transport
and so on.
Changing objectives of
modern business
Production and supply of quality goods and services
Contribution to the general welfare of the society
Social and psychological satisfaction of employees
Well-being of socially and economically backward
Promotion of social justice
Contribute to the revenue of the country
Adoption of fair trade practices
Development of human resources
Creation of employment
Self-sufficiency and export promotion
Trends in modern business
Foreign direct investment
Customization
Social media
E-business
Business process outsourcing
Trade in agricultural and manufacturing goods
Containerized cargo
Cloud comp
Business combination
Green marketing
Corporate social responsibility
Business and profession
BASIS FOR COMPARISON BUSINESS PROFESSION
Meaning
Business is an economic
activity concerned with
the production or
purchase and sale of
merchandise and
rendering of services with
the purpose of earning
profit.
Profession is a form of
economic activities,
wherein special skills,
knowledge and expertise
is required to be applied
by the person, in his
occupation.
Basic objective Earning profit Rendering services
Establishment
On the decision of
entrepreneur and
fulfillment of legal
formalities.
Membership of the
respective professional
body and certificate of
practice.
QualificationNo minimum
qualification.
Specialized knowledge of
study is required.
CapitalRequired as per the size
and nature of business.
Limited capital is
required.
Reward Profit Professional fee
Code of conductNo prescribed code of
conduct.
Code of conduct
prescribed by the
professional bodies needs
to be followed.
Advertisement
Products and services are
advertised to increase
sales.
Advertisement is
prohibited as per
professional code of
conduct.
