30-11-2012, 11:49 AM
NATURE AND PURPOSE OF BUSINESS
NATURE AND PURPOSE.ppt (Size: 338 KB / Downloads: 35)
Business?
Business is an Economic activity which involves regular production and or exchange of goods and services with the main purpose of earning profits through the satisfaction of human wants.
Business pervades all human activities directed towards earning profits or economic gains.
Industry,trade,Banking,Transport,Insurance,warehousing,advertising etc are integral part of modern business.
Definition of Business
Business refers to all those activities
which are concerned with the production and /or purchase and sale of goods or services with the purpose of selling them at a profit.
Characteristics of business
Economic Activity
Production or procurement (acquisition of goods for the purpose of sale)
Dealing in goods and services;( goods are consumer goods and capital goods)
Satisfaction of consumer wants
Regular dealings (continuous supply of goods and services)
Profit motive
Uncertainty.
Risk element
Creation of utility
Can profit be the sole objective of a Business
A lay man may say that business is carried on for profit only. But a good business man cannot afford to keep profits as his sole objective.
“earning of profits cannot be the objective of a business any more than eating is the objective of living”
Definition of trade
Trade is that branch of commerce which deals with exchange of goods and services in terms of money between different persons known as
‘traders’