What is Business?
A company (also known as a company or business) is an organization that deals with trade in goods, services, or both for the consumer. [1] Companies predominate in capitalist economies, where most of them are privately owned and managed to earn profit to increase the wealth of their owners. Companies can also not-for-profit or public ownership. A company owned by several persons may be designated as a company, although that term a more precise meaning.
The etymology of "business" refers to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three possibilities, depending on the scope - the singular usage of a particular organization understand the general use to refer to a particular market sector, "the music business" and compound forms such as agribusiness, and the broadest sense, includes all activities by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate and the complexity of meanings.
Man is constantly engaged in a business or other to satisfy their unlimited wants. Every day we 'business' or the word "businessman" directly or indirectly. Company has become essential part of the modern world.
Business is an economic activity, which is related to the permanent and regular production and distribution of goods and services to meet human needs.
All of us need food, clothing and shelter. We also have many other household requirements to be met in our daily lives. We have these requirements of the retailer. The retailer receives from wholesalers. The wholesaler receives from manufacturers. The retailer, the wholesaler, the manufacturer doing business and therefore are named as a businessman.
1- The regular production or purchase and selling of goods with a goal of earning profits and acquire wealth by satisfying human needs
2- Refers to a form of business activity conducted with a goal of earning profits for those on whose behalf the activity is carried
3- Human activity designed to produce or acquire wealth through buying and selling goods
Thus, the term company means continuous production and distribution of goods and services with the aim of earning profits in uncertain market conditions.
Features of The Business:
Characteristics or features of business are discussed in following points :-
1. Exchange of goods and services:
All activities are directly or indirectly involved in the exchange of goods or services for money or money's worth.
2. Deals in numerous transactions:
In business, the exchange of goods and services is a regular function. A businessman deals regularly in a number of transactions and not just one or two transactions.
3. Profit is the main Objective:
The company is exercised with the intention of earning a profit. The profit is a reward for the services of a businessman.
4. Business skills for economic success:
Everyone is not a business. A good businessman, a must have good business skills and abilities. A businessman has experience and skill to run a business.
5. Risks and Uncertainties:
Business is subject to risks and uncertainties. Some risks, such as risk of loss due to fire and theft can be assured. There are also uncertainties, such as the loss due to changes in demand or drop in price is not guaranteed and must be paid by the businessman.
6. Buyer and Seller:
Every business transaction has at least two parties a buyer and a seller. Business is nothing more than a contract or an agreement between buyer and seller.
7. Connected with production:
Business activity may be connected with the production of goods or services. In this case it is called as industrial activity. The industry may be primary or secondary.
8. Marketing and Distribution of goods:
Business activities may be involved in marketing and distribution of goods, in which case he is called as commercial activity.
9. Deals in goods and services:
In business transactions should be in goods and services.
Goods can be divided into two categories: -
Consumer Goods: Goods for consumption by end use are called consumer goods such as TV, Soaps, etc.
Producer goods: goods produced by the manufacturer for further production of goods are called producers such machines, equipment, etc. Services are intangible, but can be exchanged for value, such as providing transportation, warehousing and insurance services, etc.
10. To Satisfy human wants:
The businessman also wants to meet human needs through behavior business. By producing and supplying various commodities, businessmen seek to promote consumer satisfaction.
11. Social obligations:
The modern business is service oriented. Modern businesses are aware of their social responsibility. Today's business is service oriented rather than profit.
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