Introduction To Business

Nature of Business
Chapter-1
 Business
 Concept:
 Characteristics:
1. Goods & Services
2. Exchange
3. Regular Dealing
4. Profit
5. Creation of utility
6. Capital
7. Risk
8. Competition
9. Change
10. Information
 Division/Components of Business a). Industry b). Commerce
 a). Industry:
 Concept
1. Primary Industry
Extractive Industry
Genetic Industry

2. Secondary Industry
Manufacturing Industry
Construction Industry

3. Tertiary Industry
 b). Commerce:
 Functions: Commerce helps in flow of P/S from the producers to
consumers by removing following obstacles.

1. Hindrance of person
2. Hindrance of place
3. Hindrance of time
4. Hindrance of risk
5. Hindrance of exchange
6. Hindrance of knowledge
 Divisions of Commerce: a) Trade b). Aids to Trade
a). Trade:
Domestic Trade
Wholesale Trade
Retail Trade
Foreign Trade
Import Trade
Export Trade

b). Aids to Trade

1. Transportation
2. Banking & Finance
3. Insurance
4. Storage
5. Marketing & Advertising
6. Packaging
 Objectives of Business
a). Economic Objective
1. Earn Profit
2. Create Customers
3. Modernization
4. Productivity

b). Social Objective

5. Quality Goods
6. Reasonable Price
7. Social Recognition
8. Personal Satisfaction
9. Public Service
10. Investment Opportunities
11. Employment Opportunities
12. Living Standard
 c). National Objective
1. Development
2. Foreign Exchange
3. Research & Development
 Functions of Business
1. Production
2. Purchase
3. Selling
4. Storage
5. Marketing
6. Transportation
7. Banking
8. Insurance
9. Middleman
10. Research

Business & Profession…

 Qualities of Successful Businessman
1. Initiative & Decision Making
2. Determination & Courage
3. Intelligent & Alert
4. Leadership Qualities
5. Business Morality
6. Training & Education
7. Time Sense
8. Regularity & Reliability
9. Skills
10. Adaptation & Good Memory
11. Courtesy
12. Cooperation
13. Pleasant Personality
14. Other Qualities
 Problems Before Starting Business
1. Selection of Business
2. Selection of Product
3. Size of Business
4. Selection of Business Organization
5. Financial Planning
6. Selection of Location
7. Selection of Employees
8. Government Policy
9. Effective & Efficient Management
10. Maintenance of Office
11. Legal Formalities
 Forms of Business Organizations
1. Sole Proprietorship
2. Partnership
3. Company
4. Limited Liability Partnership
5. Cooperative Societies

Ideal Form of Organization

6. Formation
7. Capital
8. Liability
9. Management
10. Stability
11. Flexibility
12. Tax Liability
13. Government Regulations
14. Secrecy
15. Transfer of Ownership
Any Questions