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Chapter No.

Overview of Business

 Business:An organization or enterprising entity engaged in commercial, industrial or professional
activities. A business can be a for-profit entity, such as a publicly-traded corporation, or a nonprofit organization engaged in business activities, such as an agricultural cooperative. Any
commercial, industrial or professional activity undertaken by an individual or a group.
A business, also known as an enterprise or a firm, is an organization involved in
the trade of goods, services,
to consumers.
in capitalist economies, where most of them are privately owned and provide goods and services
to customers for profit. Businesses may also be not-for-profit or state-owned. A business owned
by multiple individuals may be referred to as a company.
Businesses include everything from a small owner-operated company such as a family
restaurant, to a multinational conglomerate such as General Electric. To "do business" with
another company, a business must engage in some kind of transaction or exchange of value with
that company. In this sense, the word "business" can be used to refer to a specific industry or
activity, such as the "real estate business" or the "advertising business".

 Types of Business:Business is mainly classified as,
 Service type of Business
 Manufacturing type of Business
 Trade type of Business

 Service type of Business:-

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A service business is a business enterprise which derives the majority of its income from the delivery of services. the shops. Different kinds of practical conditions make for many kinds of business. A service business can include beauty shops and car body shops. They work in a large geographical area. Usually two kinds of businesses are defined in trading. business or government purposes.  Industrial Sectors:The industrial sector is any and all companies. Importers or wholesalers maintain a stock and deliver products to shops or large end customers. An energy-consuming sector that consists of all facilities and equipment used for producing. of any product.  Manufacturing type of Business:Manufacturing business is a business venture. and the construction sector. as opposed to the sale of a particular product. and deliver products to customers. The industrial sector encompasses the following pg. refining. maintain a stock or a shop.  Trade type of Business:Trading companies are businesses working with different kinds of products which are sold for consumer. and production or creation. which deals with the process of converting raw materials in to finished products through the manufacturing process. while their customers. supply of raw materials and ensuring quality of products. if a company works with factories and farmers. corporations. They use raw material to produce goods and sell them to the consumers at a profit. work in smaller areas and often in just a small neighbourhood. For instance. The goods producing sector of the economy. Example of the industrial sectors includes the manufacturing sector. These businesses charge for their services rather than a physical item. and organizations that work with the extraction.A service business provides customers a service rather then a product for a set price. or assembling goods. Trading companies buy a specialized range of products. they are part of the industrial sector. Managing a manufacturing business includes predicting the demand. agricultural sector. processing. 2 .

etc. textiles. implementation and evaluation of integrated systems. which is concerned with bills of material and routing. paper and paper products. machines. tobacco. Fossil fuels are also used as raw material inputs to manufactured products. and lighting. can be disassembled and its components. transparent sheets. Industrial engineers are the bridge between management goals and operational performance. petroleum. In general. and they develop plans. materials. A car or computer. 3 . it cannot be distilled back to its basic components. with lesser amounts used for facility heating. improvement. air conditioning. Some of these systems are people.  Engineering Industry:Industrial engineering is a branch of engineering that concerns with the development. money. Industrial engineers identify opportunities for improvement with equipment. beverages. chemicals. forestry. rubber. pg. base metals. ceramics. agriculture. In other words. The industrial engineer analyzes and specifies integrated components of people. aspartame. wood and wood products.  Process Industry:The process industries are those industries where the primary production processes are either continuous. A can of soda cannot be returned to its basic components such as carbonated water. knowledge. coal. A plastic card manufactured cannot be returned to its basic components like PVR sheets.types of activity: manufacturing. "once you put it together. including oil and gas extraction. Examples of the process industries include food. design and implementation of systems and plans for operating those systems that bring value to the organization. plastics. on the other hand. Juice cannot be put back into an orange. methods. mining. They are expected to exert leadership in workplace education as well as analysis. and can be contrasted with discrete manufacturing. and other ingredients. and construction. Process manufacturing is the branch of manufacturing that is associated with formulas and manufacturing recipes. layouts. to a large extent. information and energy. The simplest and easiest way to grasp the definition of process manufacturing is to recognize that. industrial engineering is concerned with the design of production and service systems. fishing and hunting. you cannot take it apart". or occur on a batch of materials that is indistinguishable. once an output is produced by this process. materials. and facilities to create efficient and effective systems that produce goods and services beneficial to mankind. pharmaceuticals. citric acid. returned to stock. Overall energy use in this sector is largely for process heat and cooling and powering machinery. potassium benzoate.

water. and cloth and the subsequent design or manufacture of clothing and their distribution. as companies must take many steps to convert raw materials into usable chemicals. Rubber and plastic make up a huge part of the chemical industry. The Agriculture pg. The textile industry also includes chemical companies that make synthetic fibres and all the resultant products. The chemical industry is a central part of modern business and manufacturing. Measurement. processing and distribution of farm products. such as sheep farmers and cotton growers. or synthetic using products of the chemical industry. Then there are the wholesalers and retailers of all these textiles. The textile industry or apparel industry is primarily concerned with the production of yarn. It produces a massive range of different substances that are used in almost all fields. metals. then. Agrobased industries are those industries which depend on agricultural products as raw materials. if even a small amount of the material is not entirely pure. The raw material may be natural.  Agro Industry:Industry dealing with the supply. Chemical companies use raw materials such as oil. different substances and materials are usually put through chemical reactions that yield the desired end results. They often must process and refine the raw materials to get them into a pure form. and natural gases to produce thousands of different chemicals that are used all across the globe. Ex: cotton textile industries use cotton as raw material and then process them. bleach and finish the cloth. those who make the thread into cloth. Textile Industry:The textile industry includes every business involved in growing or producing fibres. those who make the fibre into thread. There are many different processes and technologies involved in the chemical industry. Great precision is needed. 4 . which actually consumes a significant part of its own output. is an extraordinarily important aspect of the industry. and those who dye. from commercial sales to medicine. the final product could be ruined. Finally.  Chemical Industry:The chemical industry comprises the companies that produce industrial chemicals. and the products that are made from them.

Industry encircles a variety of procedures wherein natural resources give rise to a number of products. capital flows.  Benefits of Globalization: By buying products from other nations customers are offered a much wider choice of goods and services.  Economic Interdependence among different nations can build improved political and social links. migration.  Globalization:Globalization means the integration of national economies into the international economy through trade.  Choosing to specialize in certain products may lead to unemployment in other sectors which are not prioritized.  ‘Dumping’ of goods by certain countries at below cost price may harm industries in order countries. and the spread of technology. pg.  Drawbacks of Globalization: Cheap imports from developing nations could lead to unemployment in developed countries where the cost of production is high. 5 .  Creates competition for local firms and thus keeps costs down. foreign direct investment. largely as a result of deregulation and improved communications". Countries can begin to specialize in those products they are best at making. Globalization is the "process of enabling financial investment markets to operate internationally.  Increased competition for infant industry.  Globalization promotes specialization.

 Types of IPR:Common types of intellectual property rights include. artistes and business owners are granted certain exclusive rights to a variety of intangible assets for a specified duration. Intellectual property (IP) is a legal concept which refers to creations of the mind for which exclusive rights are recognized. it was not until the 19th century that the term intellectual property began to be used. such as musical. and words. and designs. Intellectual property Rights (IPR):Intellectual Property (IP) refers to the creations of the human minds for which exclusive rights are recognized. Innovators. literary. and not until the late 20th century that it became commonplace in the majority of the world.  Patents  Copyright  Industrial design rights  Trademarks  Trade dress  Trade secrets pg. Under intellectual property law. Although many of the legal principles governing intellectual property rights have evolved over centuries. 6 . phrases. symbols. discoveries and inventions. owners are granted certain exclusive rights to a variety of intangible assets. and artistic works.