Define business and discuss its important


• Human beings are continuously engaged in some activity or other in order to satisfy their unlimited wants. Every day we come across the word 'business' or 'businessman' directly or indirectly. Business has become essential part of modern world.

which is related with continuous and regular production and distribution of goods and services for satisfying human wants.BUSINESS • Business is an economic activity. .

clothing and shelter. We met these requirements from the shopkeeper. We also have many other household requirements to be satisfied in our daily lives.BUSINESS • All of us need food. The shopkeeper gets from wholesaler. .

the manufacturer are doing business and therefore they are called as Businessman.BUSINESS • The wholesaler gets from manufacturers. the wholesaler. . The shopkeeper.

According to Dicksee." . • "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.

several common forms exist: • Sole proprietorship: • Partnership: • Corporation: • Cooperative: .Basic forms of ownership • Although forms of business ownership vary by jurisdiction.

The owner may operate the business alone or may employ others.Sole proprietorship: • A sole proprietorship is a business owned by one person for-profit. . The owner of the business has unlimited liability for the debts incurred by the business.

Partnership: • A partnership is a business owned by two or more people. each partner has unlimited liability for the debts incurred by the business. In most forms of partnerships. The three typical classifications of for-profit partnerships are general partnerships. . and limited liability partnerships.

. Corporations can be either government-owned or privately owned. and corporations can organize either for-profit or notfor-profit.Corporation: • A corporation is a limited liability business that has a separate legal personality from its members.

for-profit corporation is owned by shareholders who elect a board of directors to direct the corporation and hire its managerial staff. for-profit corporation can be either privately held or publicly held. . A privately owned.Corporation(cont) • A privately owned.

A cooperative differs from a for-profit corporation in that it has members. a cooperative is a limited liability business that can organize for-profit or not-for-profit. as opposed to shareholders.Cooperative: • Often referred to as a "co-op". .

Cooperatives are fundamental to the ideology of economic democracy. .Cooperative(cont) • who share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives.

Profit is the main Objective 4. Business skills for economic success 5. Exchange of goods and services 2.Features of Business 1. Deals in numerous transactions 3. Risks and Uncertainties .

Social obligations .Features of Business 6. To Satisfy human wants 11. Marketing and Distribution of goods 9. Buyer and Seller 7. Deals in goods and services 10. Connected with production 8.

.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.

A businessman regularly deals in a number of transactions and not just one or two transactions. the exchange of goods and services is a regular feature. .Deals in numerous transactions • In business.

. The profit is a reward for the services of a businessman.Profit is the main Objective The business is carried on with the intention of earning a profit.

Business skills for economic success Anyone cannot run a business. . A businessman needs experience and skill to run a business. one needs to have good business qualities and skills. To be a good businessman.

Risks and Uncertainties Business is subject to risks and uncertainties. . such as loss due to change in demand or fall in price cannot be insured and must be borne by the businessman. There are also uncertainties. such as risks of loss due to fire and theft can be insured. Some risks.

Buyer and Seller Every business transaction has minimum two parties that is a buyer and a seller. Business is nothing but a contract or an agreement between buyer and seller. .

In this case. . it is called as industrial activity.Connected with production Business activity may be connected with production of goods or services. The industry may be primary or secondary.

.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.

. T. Goods may be divided into following two categories :Consumer goods : Goods which are used by final consumer for consumption are called consumer goods e. Soaps. etc..Deals in goods and services In business there has to be dealings in goods and service.V.g.

g. warehousing and insurance services. etc. Machinery. . equipments. Services are intangible but can be exchanged for value like providing transport.Deals in goods and services (cont) • Producer goods : Goods used by producer for further production are called producers goods e. etc.

To Satisfy human wants The businessman also desires to satisfy human wants through conduct of business. . By producing and supplying various commodities. businessmen try to promote consumer's satisfaction.

Modern businessmen are conscious of their social responsibility. Today's business is service-oriented rather than profit-oriented. .Social obligations Modern business is service oriented.

.Intellectual property • Businesses often have important "intellectual property" that needs protection from competitors for the company to stay profitable.

Intellectual property(cont) • This could require patents. trademarks or preservation of trade secrets. logos and similar branding techniques that could benefit from trademarking . copyrights. Most businesses have names.

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