BUSINESS

Presented by
Deepak Rathore
Intramantra Global Solution PVT LTD,Indore
http://intramantra.com
 BUSINESS
INTRODUCTION:-
Human beings in order to satisfy their
needs take up many activities. These activities can
be broadly classified as economic and non-
economic activities. Business comes under
economic activity. It means regular production or
purchase and sale of goods, with an intention to
earn profit. It includes activities such as farming
mining manufacturing, banking, transport,
construction etc. which are taken up with a profit
orientation.
 MEANING:-
• Business means employment, trade, commercial activity
or industrial concern. It may be defined as

• “HUMAN ACTIVITY DIRECTED TOWARDS

PRODUCING OR ACQUIRING WEALTH (PROFIT)
THROUGH BUYING OR SELLING GOODS.”

• The modern concept believes in the fact that business is a

long lasting social and economic institution. Business in order
to survive and grow has to make profit along with meeting
other societal obligations. New concept of business is
“PROFIT THROUGH SERVICE." Thus along with economic
objectives of profit maximization, social responsibilities of
business towards various stake holder like owners, workers,
consumers, society and government have gained a
considerable importance.
• According to Prof. OWENS “Business is an enterprise
engaged in the production and distribution of goods for sale in
a market or offering services for a price.”
 CHARECTERISTICS: -
      Business is considered as a system, which is composed of
 
many subsystem and elements, which are independent but at same
time interrelated.
Business system uses the various inputs (Men,
material technology, information, energy) to create usable
goods/services as output to meet the needs of customer.

  Business is viewed as a long lasting commercial institution.

This all the strategies and decision in the business and not merely
limited to short term gains but a directed towards the long-term
business applications.

     Business invariably involves exchanges of goods or

services for money. The customers must derive some satisfaction
out of the products/services to make them buy the same. Thus,
business involves exchange of goods or services for consumer
advantage and revenue (income).

 
   Though profit motive “Is not the only purpose
for carrying out the business, it has to generate profits for
continuation and growth of business.”

     Business involves risk and it is considered that the

profit (surplus of revenue over expenditure) is the reward for risk
taking. The common risks that are perceived by the business are
changing technology, changes in consumer tastes and
preferences, demand, supply conditions, competitive situation,
government and regulatory policies etc.

Business influences the standard of living (Quality of work

life) of the people and it is the leading indicator of the development
of the nation.
 
 BUSINESS CYCLE: -
(1)Prosperity phase: -
During prosperity for overall business the
demand potential is very high .On the basis of high demand the various
business continues to prosper because of demand industrialist they
are very keen and enthusiastic for more and more investment into their
business because they know that their investment is going to be
recovered fully.In this way an overall business outlook appears to be
very encouraging.  

(2)Depression phase: -
The phase of prosperity may last for
seven to ten years but after that a stage of business depression sets in.
During this stage demand potential for various businesses appears to
be very low. This has a direct impact on profit volume of the
businesses .For many businesses their profit earning potential get
reduced while many other businesses they confine to earn losses.
During the stage of business depression industrialist are not very keen
for additional investment into their businesses .As a result of it
employment potential always appears to be very low .The stage of
business preparation may also last for a comfortable time span of
seven to ten years and after that again the stage of business prosperity
  
 
 
  SCOPE OF BUSINESS
BUSINESS

COMMERCE INDUSTRY

TRADE SUPPORT TO
  TRADE 1.Genetic industry
1.Wholesale 1.Transport  
  2.Communication 2.Extractive Industry
2.Retail 3.Banking  
  4.Insurance 3.Manufacturing industry
3.Foreign 5.Ware housing  
trade 6.Advertising 4.Construction industry
 
7.Stock exchange  
 
 OBJECTIVES OF BUSSINESS

ECONOMIC HUMAN SOCIAL ORGANIC NATIONAL

1Employees 1.Creation of 1.Helping

1.Profit earning welfare & employment National
satisfaction 1.Survival Efforts

2.Production of 2.Developmen
2.Shareholders 2.Proper t of small
goods & services utilization of
satisfaction Entrepreneur
natural s
resources 2.Growth
3.National
3.Production & Self-
3.Creation of 3.Consumers Sufficiency &
supply of
markets satisfaction Export
Quality Goods
Development
4.Technological 3Recognition 4.Developmen
4.Helpful to 4.Availability of
improvements t of skilled
government Goods
Personnel
Thank You !!!