Human Activities

In every society people undertake

various activities to satisfy their
needs.
These activities can b broadly
be classified in two groups:
 ECONOMIC ACTIVITIES
 NON ECONOMIC ACTIVITIES
ECONOMIC ACTIVITY
 Economic activities are those by
which we can earn our livelihood.
OR

Keeping yourself engaged
to earn something in return is
economic
activity.
 e.g. doctor, teacher, driver, sweeper or
clerk are all engaged in economic
activities.
NON ECONOMIC ACTIVITY
 Activities which do not have any
economic motive and are performed with
a feeling of love, sympathy, humanity and
patriotism
are known as non-economic activities.
e.g. playing, dancing, giving donation, a
housewife cooking food for family, or a
boy
helping an old man cross the road etc.
TYPESOF ECONOMIC
ACTEconomic
 IVITIES activities may be further divided into
three categories:
1. Business
2. Profession
3. Employment
 Business
 The term Business is derived from the word ‘busy’.
Thus, business means being busy.
 However, in specific sense, business refers to an
occupation in which people regularly engage
themselves with a view to earn profit.
 Business involves production or purchase or exchange
of goods and services to satisfy the needs of people
with aim to earn profit.
 The persons who are engaged in business are called
entrepreneurs.
 PROFESSION
 Profession refers to the activitywhich requires
special knowledge and skills to be applied by an
individual in his work to earn a living. E.g. doctor,
lawyer, teacher, nurse.etc.
EMPLOYMENT
 Employment refers to an activity in which a person
works regularly for another for a fixed
remuneration. E.g. People who work in banks,
insurance companies, or
government departments, as managers, assistants,
clerks, peons, or security guards.
CHARACTERISTICSOF BUSINESS
ACTIVITIES
1. An economic activity.
2. Production or procurement of goods
and services.
3. Sale or exchange of goods and services for
the satisfaction of human needs.
4. Dealing in goods and services on regular basis.
5. Profit earning.
6. Uncertainty of return.
7. Element of risk.
 COMPARISON OF BUSINESS,
PROFSSION AND EMPLOYMENT
1. Mode of establishment:
 Business is established when the
entrepreneur decides.

 Profession is started after getting the certificate

of practice from the professional body.

 Employment begins after getting the

appointment letter from the employer.
2. Nature of work:

Business includes buying and selling
of goods and services.

Profession involves rendering personalized

services of expert nature.

Employment includes performing the work

as per the service contract.
3. Qualification:
No minimum qualification is required for
business.

A professional degree in a specific field

is required for profession.

An employee needs the qualification and

training as prescribed by the employer.
4. Return of reward:

Business gets the return in the form
of profit.

 Professionals charges fees for their

services.

Employees get the salary or wages in return

for their work.
5. Capital investment:

Business needs investment as per its
size and nature.

Only initial investment is required in case

of profession.

No capital investment is needed for

employment.
6. Risk:
In business, profits are uncertain and
irregular; so risk is present.

Professionals face less risk ; as the fee

charged is generally regular and certain.

No risk is there in employment; as they get

a fixed and regular pay.
7.Code of conduct
No code of conduct is prescribed in
business.

Professional code of conduct is to be

followed.

Norms of behavior laid down by the

employer are to be followed.
OBJECTIVES OF
 An objective is the starting point of business.
BUSINESS
 It refers to the aim because of which a business
unit is brought in to existence.
Objectives of business:
1. Market standing
2. Innovation
3. Productivity
4. Physical and financial resources
5.Earning profit
6.Manager performance and
development
7.Workers performance and attitude
8.Social responsibility
 FACTORS TO BE CONSIDERED
WHILE STARTING A BUSINESS
UNIT
1. Selection of line of business
2. Size of the firm
3. Choice of form of ownership
4. Location of business enterprise
5. Availability of finance
6. Physical facilities
7. Plant layout
8. Competent and committed work force
9. Tax planning
10. Launching of enterprise
 BUSINESS
 The term business risk refers to the possibility of
RISK
inadequate profits or even losses due to
uncertainties or unexpected events.
 Busniess enterprises constantly face two types of
risks:
specultive risk and pure.
 Speculative risk– involves both the possibility of
gain as well as the possibility of loss.Examples-
change in demand and supply, chages in fasion and
taste of consumers etc.
 Pure risk involve only the possibility of loss or no
loss. Example- the chance of fire, theft or strike.
 NATURE OF BUSINESS RISK
1. Business risk arise due to uncertainties.
2. Risk is the essential part of business.
3. Degree of risk depends upon the nature
and size of business.
4. Profit is the reward for risk taking.
Causes of business
i. Natural causes – natural calamities like flood, earthquake,
risks heavy
Human causrains
lightning,
 es – dishonesty, carelessness or negligence of employees, stoppage of work
etc.
due to power failure, strikes, management efficiency.
Economiccauses– uncertainties relating to demand for goods, competition prices, colection of
ii.
duesfrom customers, changeof technology or method of production.
iv. Other causes– political disturbance, mechanical failure etc.
iii
.