“It is easy to open a business but it is an art to keep it open”
Concept of Business
The literal meaning of term “Business” is a state of being busy. It is a wider term and may be explained as an activity in which different persons exchange something of value, whether goods or services, for mutual gain or profit. It is an organized or systematic activity involving the satisfaction of human wants. Business involves regular or recurring purchase and sale of goods and services with the purpose of earning profits through the satisfaction of human needs. Repeated dealings rather than a single isolated transaction constitute business. Business may be distinguished from other activities by the fact that goods and services created or purchased are meant for sale and not for personal consumption.
“Business is an enterprise engaged in the production and distribution of goods for sale in market of rendering services for a price”
Production / Provision of goods and services
Acquisition of wealth of gain
Nature of Business
The meaning and nature of business can also be explained with the help of following points:
Business is a Human Activity:
Business is purely a human activity. It is the human being who starts business, earns a profit and manages different factors related to the business.
- Business is a System:
Business is a systematic and sound arrangement of various factors, which leads to the fulfillment of particular objective according to a well-established strategy. A business enterprise is a combination of various sub-systems.
- Business is a Social Process:
Business is a process, which is run by the owners with the help of employees, professionals and customers. These people are the part of society whose welfare is the responsibility of business. Thus, the business is a social process.
- Business is an Economic Activity:
Business is an economic activity as it is concerned with the creation, attainment and consumption of wealth.