“It is easy to open a business but it is an art to keep it open”
“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.
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“Business
is an enterprise engaged in the production and distribution of goods for sale
in market of rendering services for a price”
Main Points
Human
activity
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.
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