Nature and significance of business
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Transcript of Nature and significance of business
CLASS 1 1Business studies
CHAPTER – NATURE AND PURPOSE OF
HUMAN ACTIVITIES
Activities performed by human beings to meet needs and wants or for personal satisfaction. Human activities can be categorized as Economic and Non-Economic activities.
TYPES OF ECONOMIC ACTIVITIES
BUSINESSEMPLOYEMENTPROFESSION
CLASSIFICATION OF INDUSTRIES
INDUSTRY-◦PRIMARY INDUSTRIES EXTRACTIVE INDUSTRIES GENETIC INDUSTRIES
oSECONDARY INDUSTRIES MANUFACTURING INDUSTRIES ANALYTICAL INDUSTRIES SYNTHETICAL INDUSTRIES PROCESSING INDUSTRIES ASSEMBLING INDUSTRIES CONSTRUCTION INDUSTRIES
TERTIARY INDUSTRIES provide supporting services to primary and secondary industries.
They provide services in the field of banking , communication, transportation, advertising, warehousing etc.
CHARACTERSTICS OF BUSINESS
ECONOMIC ACTIVITYSALE OR EXCHANGE OF GOODS AND
SERVICESPROFIT MOTIVEELEMEN TOF RISKUNCERTAINITY OF RETURNDEALING ON REGULAR BASIS
OBJECTIVES OF BUSINESS
ECONOMIC OBJECTIVESProfitSurvivalGrowth
Social objectives Employment opportunities Social welfare Employee welfare and development
ROLE OF PROFIT
REWARD FOR BEARING RISKCREATING CREDITWORTHINESSYARDSTICK FOR BUSIENSS PERFORMANCE
Business risk
CAUSES OF BUSINESS RISK
NATURAL CAUSESHUMAN CAUSES ECONOMIC CAUSESEXTERNAL CAUSES
TYPES OF BUSINESS RISK
SPECULATIVE RISKSPURE RISKSINSURABLE RISKSUNINSURABLE RISKS