Nature of Buisness

BST

Concept of business

Business refers to an occupation in which people regularly engage in activities related to purchase,production and/or sale of goods and services with a view to earning profits.

Types of Activities

1. Economic activities - earn livelihood

2. Non economic activities - out of love sympathy, etc

Categories of Economic Activities

1. Business

2. Profession

3. Employment

Characteristics of Business Activities

1. Economic Activity

2. Production or Procurement of goods and services

3. Dealings in goods and services on a daily basis

4. Profit earning

5. Sale or exchange of goods and service

6. Element of risk

7. Uncertainty of return

Classification of business activities

1. Industry - Industry is concerned with the production or processing of goods and materials.

2. Commerce - Commerce includes all those activities, which are necessary for facilitating the exchange of goods and services.

Types of industry

1. Primary- Genetic, Extractive

2. Secondary- Manufacturing(Assembling, Synthetic, Processing, Analytical), Construction

3. Tertiary

Trade/ Auxiliaries to Trade

1. Transport and communication

2. Banking and finance

3. Insurance

4. Warehousing

5. Advertising and public relations (PR)

Objectives of business

1. Market standing

2. innovation

3. physical and financial resources

4. productivity

5. social responsibility

6. Earning profit

Business risk