Knowt
Note
Studied by 32 peopleNoteStudied by 10 peopleNoteStudied by 20 peopleNoteStudied by 29 peopleNoteStudied by 61 peopleNoteStudied by 31 people
Business Studies
Page 1: Introduction to Business
Overview of the concept and significance of business.
Page 2: Definition and Nature of Business
Business involves economic activities such as the production and sale of goods and services.
The primary motive is to earn profits while satisfying societal needs.
Page 3: Economic vs. Non-Economic Activities
Economic Activities
Defined as activities aimed at earning money and creating wealth.
Non-Economic Activities
Focus on social, psychological, or emotional needs (e.g., love, sympathy).
Objective is general good or mental satisfaction.
Examples
Economic: Operating a factory, restaurant services.
Non-Economic: Household activities, informal education at home.
Page 4: Goods vs. Services
Goods
Tangible, involve production, distribution, consumption, and ownership transfer.
Services
Intangible, cannot have ownership transfer, no distinct processes.
Page 5: Profit Motivation
Businesses aim for profit and must manage income relative to expenses.
Page 6: Social Needs Satisfaction
Highlighting the relevance of businesses in addressing societal needs.
Page 7: Characteristics of Business
Economic activity focused on making profits.
Involves production or procurement of goods/services.
Sale/exchange for profit; single transactions are not business.
Requires regular dealings; acknowledges the uncertainty of returns and inherent risks (strikes, theft, environmental factors).
Page 8: Types of Economic Activities
Business
Engaged in the production/sale of goods and services for profit.
Profession
Specialized knowledge or skills required; gives services for remuneration.
Employment
Work for others; salaried positions or contractual agreements. Examples: Manufacturing, fishing, teaching.
Page 9: Basis of Distinction Between Business, Profession, and Employment
Analyses the differences based on:
Establishment mode
Nature of work
Required qualifications
Capital investment needed
Reward structure and liability
Code of conduct regulations
Page 10: Not-for-Profit Organizations
Aim to achieve social goals rather than profit.
Examples include charities and NGOs.
Page 11: Business Objectives (3 Ps)
Profit
Essential for survival and growth.
People
Commitment to product quality and fair practices.
Planet
Recognizing environmental impacts and sustainability.
Page 12: Profit Earning Principles
Aims for survival, customer satisfaction, innovation, optimal resource use, and productivity improvement.
Page 13: People-Oriented Business Practices
Emphasizing quality and fair pricing, ethical practices, employment generation, and community services.
Page 14: Planet Considerations
Environmental impact reduction strategies in business practices.
Page 15: Classification of Business Activities
Industry: Production of goods/services.
Commerce: Distribution of goods/services.
Page 16: Types of Industries
Primary Industries: Raw materials extraction (21.82% GDP).
Secondary Industries: Manufacturing/construction (24.29% GDP).
Tertiary Industries: Services (53.89% GDP).
Page 17: Primary Industry Types
Extractive: Materials sourced from the natural environment.
Genetic: Breeding improvements (e.g., farming).
Page 18: Secondary Industries
Focused on manufacturing finished goods from raw materials.
Construction activities for infrastructure development.
Page 19: Secondary Industry Sub-Types
Manufacturing
Converting raw or semi-finished material into finished products.
Construction
Building infrastructure like bridges, dams, and buildings.
Page 20: Services Overview
Intangible functions that facilitate other business operations (e.g., transport, banking).
Page 21: Questions
Indicates the end of the section and openness for inquiries.
Page 22: Commerce Overview
Activities aiding the transfer of goods/services from producers to consumers.
Page 23: Functions of Commerce
Addresses various hindrances in trade, including:
Personal, place, time, risk, finance, and information relevancies.
Page 24: Types of Commerce
Trade: Primary form of commerce.
Auxiliaries to trade: Services enhancing trade efficiency.
Page 25: Internal Trade Definitions
Wholesale Trade
Bulk buying/selling between producers and wholesalers.
Retail Trade
Selling directly to consumers in smaller volumes.
Page 26: External Trade Definitions
Import Trade: Purchasing from abroad.
Export Trade: Selling to foreign countries.
Entrepot: Warehousing imports before re-export.
Page 27: Auxiliaries to Trade
Assist in removing trade hindrances through transportation, finance, and insurance.
Page 28: Business Activities Classification
Industry
Deals with production.
Commerce
Involves distribution.
Page 29: Understanding Business Risk
Risks represent the potential for inadequate profits/losses stemming from uncertainties.
Categorized into speculative and pure risks.
Page 30: Nature of Business Risks
Risks arise due to market uncertainties.
Essential part of business; cannot be avoided.
Degree varies by business scale; smaller firms generally face lower risk.
Profits reward the risk-taking involved.
Page 31: Causes of Business Risks
Natural: Environmental calamities
Human: Management inefficiency
Economic: Market fluctuations
Physical: Equipment failures
Other: Political and economic disturbances.
Page 32: Starting a Business - Entrepreneurship
Process of setting up a new venture with essential factors to consider.
Page 33: Basic Factors in Starting a Business
Line of business selection based on need and potential profitability.
Scale of business (micro, small, medium, large).
Business organization form (sole proprietorship, partnership, company).
Page 34: Additional Factors in Starting a Business
Location based on resource availability.
Financial requirements and capital assessments.
Necessary machinery and facilities.
Page 35: More Factors for Business Set-Up
Plant layout for optimal workflow.
Workforce requirements for various roles.
Tax planning considerations.
Legal formalities for recognition and function.
Page 36: Assignment Details
Requirement for submitting a business plan highlighting industry and risk factors.
Page 37: Forms of Business
Examination of different organizational structures.
Page 38: Key Legal Questions in Business
Ownership, management, liability, resource acquisition queries.
Page 39: Sole Proprietorship Overview
Owned and managed by an individual with full profit and risk responsibilities.
Page 40: Features of Sole Proprietorship
Formation ease, unlimited liability, sole control, and lack of business continuity.
Page 41: Merits of Sole Proprietorship
Quick decision-making, confidentiality, direct profit incentives, easy formation.
Page 42: Limitations of Sole Proprietorship
Limited resources, business lifespan, and managerial capability.
Page 43: Partnership Overview
Relationship based on profit-sharing as per the Indian Partnership Act, 1932.
Page 44: Features of Partnership
Shared formation, unlimited liability, mutual risk bearing, continuity issues.
Page 45: Merits of Partnership
Balance decision making, increased funding potential, risk sharing.
Page 46: Limitations of Partnership
Unlimited liability, potential conflicts, limited resources.
Page 47: Types of Partners
Describes active, dormant, secret, nominal, and holding partners in a partnership.
Page 48: Partner Types Comparison Table
Outlines contributions, management roles, and liabilities for each partner type.
Page 49: Types of Partnership by Duration
At-will: Continues indefinitely.
Particular: Finite duration based on objectives.
Page 50: Types of Partnership by Liability
General: Unlimited and joint liability.
Limited: At least one unlimited, others have limited liability.
Page 51: Partnership Deed Necessities
Essential written agreement detailing partnership terms.
Page 52: Registration for Partnership Firms
Highlights the need for registration for legal protections and functionality.
Page 53: Partnership Registration Process
Outlined steps per the Indian Partnership Act, 1932.
Page 54: Considering Best Forms of Business
Discussion of favorable organizational structures.
Page 55: Joint Hindu Family Business
Ownership and governance structures under Indian law.
Page 56: Features of Joint Hindu Family Business
Formation requirements, liability, control, and continuity mechanisms.
Page 57: Merits of Joint Hindu Family Business
Effective control, stable existence, and limited liability.
Page 58: Limitations of Joint Hindu Family Business
Limited resources and dominance concerns.
Page 59: Cooperative Society Definition
Voluntary associations of individuals for mutual economic benefit.
Page 60: Features of Cooperative Societies
Voluntary membership, limited liability, legally recognized entity.
Page 61: Control and Service Motives of Cooperatives
Member-controlled with an emphasis on mutual welfare.
Page 62: Merits of Cooperative Societies
Equal member treatment, limited liability, stable existence.
Page 63: Limitations of Cooperative Societies
Resource limitations, inefficiencies, and lack of secrecy.
Page 64: Types of Cooperative Societies
Consumer, producer, marketing, farmers, credit, and housing cooperatives.
Page 65: Consumer Cooperative Societies
Focus on consumer interest protection and cost savings.
Page 66: Producers Cooperative Societies
Support small producers against capitalists and enhance bargaining power.
Page 67: Marketing Cooperative Societies
Aids small producers in product marketing and distribution.
Page 68: Farmers Cooperative Societies
Focus on improving farmers' productivity and resource sharing.
Page 69: Credit Cooperative Societies
Provide affordable credit to members for various needs.
Page 70: Cooperative Housing Societies
Facilitate affordable residential solutions for members.
Page 71: Joint Stock Company Overview
Association for commercial activities under a legal entity.
Page 72: Company Features
Legal independence, share-based capital structure, perpetual succession.
Page 73: Shareholder and Governance in Companies
Ownership structure and decision-making bodies defined.
Page 74: Company Characteristics
Risk bearing, common seal usage, and management delegation.
Page 75: Company Merits
Limited liability, ease of ownership transfer, and perpetual existence.
Page 76: Company Limitations
Formation complexities, public disclosure levels, and impersonal work environments.
Page 77: Company Decision-Making and Regulation
Structure with multiple management levels and governance bureaucracy.
Page 78: Types of Companies
Further investigation into private and public companies.
Page 79: Private Company Characteristics
Restrictions on share transfers and membership limits; requires 'Private Limited' in the name.
Page 80: Private Company Privileges
Formation rapidity, prospectus exemptions, and reduced member requirements.
Page 81: Public Company Characteristics
More extensive membership, share transferability, and public subscription allowed.
Page 82: Public vs Private Company Differences
Comparison based on members, directors, share transfer, and public interactions.
Page 83: Advantages and Disadvantages of Organizational Forms
Evaluative discussion of business structures from formation to legal requirements.
Page 84: Comparison of Various Business Forms
Overview summarizing formation, membership, liability, and flexibility.
Page 85: Public, Private, & Global Enterprise Overview
Economic growth considerations within multiple organizational contexts.
Page 86: Public Sector Characteristics
Recovery of public entities reflecting government oversight.
Page 87: Characteristics of Public Sector Initiatives
Owned and managed by the government, centerpiece in economic policy.
Page 88: Public Enterprises Hierarchy
Examples of departmental undertakings, statutory corporations, and government companies.
Page 89: Departmental Undertakings Overview
Integrated aspects of government-controlled businesses.
Page 90: Key Features of Departmental Undertakings
Funding received from government budgets.
Page 91: Merits of Departmental Undertakings
Direct governmental control ensures accountability.
Page 92: Limitations of Departmental Undertakings
Flexibility restrictions and bureaucracy hamper quick operations.
Page 93: Statutory Corporations Overview
Legislative acts define their authority and operations.
Page 94: Features of Statutory Corporations
Input independence and financial autonomy distinguished.
Page 95: Merits and Limitations of Statutory Corporations
Balancing operational freedoms with increased regulatory oversight.
Page 96: Comparative Analysis of Organizational Types
Noting differences between departmental and statutory setups and their operational styles.
Page 97: Detailed Comparison Points
Definitions
Structures
Legal Statuses
Management styles
Autonomous vs regulated
Financial structures.
Page 98: Overview of Government Companies
Established as per the Companies Act, 2013, focusing on business objectives.
Page 99: Functions and Characteristics of Government Companies
Legal relativity and operational necessities based on owned shares.
Page 100: Merits of Government Companies
Seek to enhance efficiency within public domains via competitive practices.
Page 101: Limitations of Government Companies
Detours from public responsibilities and engagement standards.
Page 102: Statutory Company Distinctions
Description and comparison against joint stock companies followed by regulatory practices.
Page 103: External Environment Factors
Distinguishing aspects impacting business activities and functioning.
Page 104: Microenvironment and Definitions
Forces directly affecting a company from its immediate surrounding.
Page 105: Elements of the Microenvironment
Sources include suppliers, customers, competitors, and other stakeholders.
Page 106: Transitioning into Macroenvironment
Shift focus to larger uncontrollable forces that influence a firm's adaptability.
Page 107: Macro Environment Variables
Categories including economic, political, technological, legal, socio-cultural, ecological, and global influences.
Page 108: Political Environment Analysis
Significance of localized policy on business operations.
Page 109: Political Stability Considerations
Investing confidence relied heavily on a stable political atmosphere.
Page 110: Trade Union Overview
Functionality in safeguarding the rights and interests of workers.
Page 111: Historical Context of Trade Unions
Timeline and evolution of labor rights movements in context with major events.
Page 112: Economic Environment Dynamics
Influence of economic status’ variability on business performance.
Page 113: Employment Trends Over Time
Specifying employment distribution across sectors.
Page 114: Manufacturing Industry Significance
Overview of how the manufacturing sector scales within the economy.
Page 115: Energy Sector Insights
Analysis of renewable vs non-renewable energy production and use trends.
Page 116: Market Dynamics of the Gems and Jewelry Sector
Understanding importance in global trade and economic structure.
Page 117: Pharmaceuticals Manufacturing Framework
Contribution and emerging capabilities in international markets.
Page 118: Employment Growth Patterns
Context-based performance in workforce management and sector adaptation.
Page 119: Service Sector Insights
Recognition of the service sector's expansion and employment growth milestones.
Page 120: Overview of NITI Aayog
Functionality and role in India's strategic governance and economic management.
Page 121: GST Introduction
Explanation detailing Goods and Services Tax implications in the Indian market.
Page 122: Socio-Cultural and Technological Trends
Relationship between demographics and business adaptations.
Page 123: Key Population Demographics
Specifics of demographic breakdown and implications on banking and welfare.
Page 124: Cultural Awareness in Marketing
Emphasizing the importance of cultural context in branding and advertising strategies.
Page 125: Economic Development Context
Projected paths toward inclusive development and industry support dynamics.
Page 126: International Trade Forums and Organizations
Outlining the role of global institutions in shaping economic strategy.
Page 127: Importance of the WTO for India
Significance of membership in global trade discussions and economic positions.
Page 128: Disputes and Legal Issues in Global Trade
Analysis of disputes where India is involved with WTO frameworks.
Page 129: Current Events and Reforms
Overview of latest reforms and their expected impact on business standards.
Page 130: Conclusion of Organizational Types
Summary statement condensing all discussed organizations and their functions.
NoteStudied by 32 peopleNoteStudied by 10 peopleNoteStudied by 20 peopleNoteStudied by 29 peopleNoteStudied by 61 peopleNoteStudied by 31 people