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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/Organization7/28/2019 Define Business and Discuss Its Important
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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.html7/28/2019 Define Business and Discuss Its Important
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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/Jurisdiction7/28/2019 Define Business and Discuss Its Important
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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_proprietorship7/28/2019 Define Business and Discuss Its Important
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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/Partnership7/28/2019 Define Business and Discuss Its Important
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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/Corporation7/28/2019 Define Business and Discuss Its Important
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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/Shareholder7/28/2019 Define Business and Discuss Its Important
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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/Cooperative7/28/2019 Define Business and Discuss Its Important
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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_cooperative7/28/2019 Define Business and Discuss Its Important
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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_property7/28/2019 Define Business and Discuss Its Important
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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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