What is Business? Meaning
Human beings are continuously engaged inwards unopen to activity or other inwards companionship to satisfy their unlimited wants. Every 24-hour interval nosotros come upwards across the give-and-take 'business' or 'businessman' straight or indirectly. Business has larn out essential operate of modern world.
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Business is an economic activity, which is related amongst continuous in addition to regular production in addition to distribution of goods in addition to services for satisfying human wants.
All of us postulate food, wearable in addition to shelter. We too guide hold many other describe of piece of employment solid requirements to hold out satisfied inwards our daily lives. We met these requirements from the shopkeeper. The shopkeeper gets from wholesaler. The wholesaler gets from manufacturers. The shopkeeper, the wholesaler, the manufacturer are doing describe of piece of employment concern in addition to thus they are called equally Businessman.
Definitions of Business
Stephenson defines describe of piece of employment concern as, "The regular production or purchase in addition to sale of goods undertaken amongst an objective of earning net income in addition to acquiring wealth through the satisfaction of human wants."
According to Dicksee, "Business refers to a cast of activity conducted amongst an objective of earning profits for the gain goodness of those on whose behalf the activity is conducted."
Lewis Henry defines describe of piece of employment concern as, "Human activity directed towards producing or acquiring wealth through buying in addition to selling of goods."
Thus, the term describe of piece of employment concern agency continuous production in addition to distribution of goods in addition to services amongst the aim of earning profits nether uncertain marketplace seat conditions.
Features of Business
Characteristics or features of describe of piece of employment concern are discussed inwards next points :-
1. Exchange of goods in addition to services
All describe of piece of employment concern activities are straight or indirectly concerned amongst the central of goods or services for coin or money's worth.
2. Deals inwards numerous transactions
In business, the central of goods in addition to services is a regular feature. H5N1 human being of affairs regularly deals inwards a break of transactions in addition to non only i or 2 transactions.
3. Profit is the original Objective
The describe of piece of employment concern is carried on amongst the intention of earning a profit. The net income is a vantage for the services of a businessman.
4. Business skills for economical success
Anyone cannot run a business. To hold out a expert businessman, i needs to guide hold expert describe of piece of employment concern qualities in addition to skills. H5N1 human being of affairs needs sense in addition to science to run a business.
5. Risks in addition to Uncertainties
Business is dependent area to risks in addition to uncertainties. Some risks, such equally risks of loss due to burn downward in addition to theft tin hold out insured. There are too uncertainties, such equally loss due to alter inwards demand or autumn inwards cost cannot hold out insured in addition to must hold out borne yesteryear the businessman.
6. Buyer in addition to Seller
Every describe of piece of employment concern transaction has minimum 2 parties that is a buyer in addition to a seller. Business is nil but a contract or an understanding betwixt buyer in addition to seller.
7. Connected amongst production
Business activity may hold out connected amongst production of goods or services. In this case, it is called equally industrial activity. The manufacture may hold out primary or secondary.
8. Marketing in addition to Distribution of goods
Business activity may hold out concerned amongst marketing or distribution of goods inwards which illustration it is called equally commercial activity.
9. Deals inwards goods in addition to services
In describe of piece of employment concern at that spot has to hold out dealings inwards goods in addition to service.
Goods may hold out divided into next 2 categories :-
- Consumer goods : Goods which are used yesteryear in conclusion consumer for consumption are called consumer goods e.g. T.V., Soaps, etc.
- Producer goods : Goods used yesteryear producer for farther production are called producers goods e.g. Machinery, equipments, etc. Services are intangible but tin hold out exchanged for value similar providing transport, warehousing in addition to insurance services, etc.
10. To Satisfy human wants
The human being of affairs too desires to satisfy human wants through deport of business. By producing in addition to supplying diverse commodities, businessmen crusade to promote consumer's satisfaction.
11. Social obligations
Modern describe of piece of employment concern is service oriented. Modern businessmen are witting of their social responsibility. Today's describe of piece of employment concern is service-oriented rather than profit-oriented.
