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What Do You Mean by Business

What Do You Mean by Business

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Published by Pruthviraj Rathore
business & its classification
business & its classification

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Published by: Pruthviraj Rathore on Oct 19, 2013
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What do you mean by Business ?

Literally the word business means the state of being busy. When a person is busy in doing some work, he is said to make some business. In the above sense, eating, reading, writing and playing will be include in the category of business. Different authors have defined business in different ways. Some of the important definitions on business are: According to Prof. Richard Owens, business means "an enterprise engaged in the production and distribution of goods for sale in a market or rendering service for a price". This definition gives emphasis on the acquisition and distribution of goods. According to Anshen, the word business means "the way men make their living". Bookseller is termed as a businessman because he earns his living by selling books. According to Haney, Business may be defined "as human activity directed towards providing or acquiring wealth through buying and selling goods". The business also include discharging of certain services on payment. All activities are not business activities an thus the activities come under business must have the following characteristics:
    

It involves creation of utilities. The activities must be a recurring one. It involves transfer of title by purchase and sale. It involves mutual benefit both to the buyer and the seller. It must be directed for earning one's livelihood.

Business is an economic activity. We met these requirements from the shopkeeper. the manufacturer are doing business and therefore they are called as Businessman." According to Dicksee. or both to consumers. "The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants. The shopkeeper gets from wholesaler. The wholesaler gets from manufacturers. Exchange of goods and services . Features of Business Characteristics or features of business are discussed in following points :- 1." Lewis Henry defines business as. the term business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions. We also have many other household requirements to be satisfied in our daily lives. services. The shopkeeper. Definitions of Business Stephenson defines business as. which is related with continuous and regular production and distribution of goods and services for satisfying human wants. clothing and shelter. All of us need food." Thus. "Human activity directed towards producing or acquiring wealth through buying and selling of goods. "Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted. the wholesaler.A business (also known as enterprise or firm) is an organization involved in the trade of goods.

Deals in numerous transactions In business. 2. such as loss due to change in demand or fall in price cannot be insured and must be borne by the businessman. Business skills for economic success Anyone cannot run a business. Profit is the main Objective The business is carried on with the intention of earning a profit. 4. Some risks. the exchange of goods and services is a regular feature. There are also uncertainties. The profit is a reward for the services of a businessman. Buyer and Seller . one needs to have good business qualities and skills. To be a good businessman. 6. Risks and Uncertainties Business is subject to risks and uncertainties. A businessman regularly deals in a number of transactions and not just one or two transactions. 3. 5. A businessman needs experience and skill to run a business. such as risks of loss due to fire and theft can be insured.All business activities are directly or indirectly concerned with the exchange of goods or services for money or money's worth.

it is called as industrial activity. Goods may be divided into following two categories :1. Soaps. equipments. Services are intangible but can be exchanged for value like providing transport. The industry may be primary or secondary. 7. Marketing and Distribution of goods Business activity may be concerned with marketing or distribution of goods in which case it is called as commercial activity. Connected with production Business activity may be connected with production of goods or services.g. Deals in goods and services In business there has to be dealings in goods and service. etc. 2.g. In this case. Consumer goods : Goods which are used by final consumer for consumption are called consumer goods e. warehousing and insurance services. Producer goods : Goods used by producer for further production are called producers goods e. T. etc. 9.V.Every business transaction has minimum two parties that is a buyer and a seller. Machinery. etc.. Business is nothing but a contract or an agreement between buyer and seller. To Satisfy human wants . 10. 8.

Today's business is service-oriented rather than profitoriented. Businesses are predominant in capitalist economies. Most businesses are privately owned. Nonprofit businesses must bring in enough revenue to pay employees and cover the costs to administer or support programs. Notable exceptions include cooperative enterprises and state-owned enterprises. Social obligations Modern business is service oriented. The owners and operators of a business have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk.The businessman also desires to satisfy human wants through conduct of business. By producing and supplying various commodities. Any money they have left over after expenses is put back into the organization . enterprise or firm) is a legally recognized organization designed to provide goods and/or services to consumers. Modern businessmen are conscious of their social responsibility. For-profit businesses sell products or services to generate revenue and earnings. Businesses can also be formed not-for-profit or be state-owned All businesses have commercial objectives. Success depends on the ability to gain more in revenue than is spent on fixed and variable expenses. 11. businessmen try to promote consumer's satisfaction. A business (company. A business is typically formed to earn profit that will increase the wealth of its owners and grow the business itself.

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