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What do you mean by Business ?

Literally the word business means the state of being busy. When aperson is busy in doing some work, he is said to make some business.

In the above sense, eating, reading, writing and playing will be

include in the category of business. Different authors have defined

business in different ways. Some of the important definitions on

business are:

According to Prof. Richard Owens, business means "an enterprise

engaged in the production and distribution of goods for sale in amarket or rendering service for a price". This definition gives

emphasis on the acquisition and distribution of goods.

According to Anshen, the word business means "the way men make

their living". Bookseller is termed as a businessman because he earns

his living by selling books. According to Haney, Business may be

defined "as human activity directed towards providing or acquiring

wealth through buying and selling goods". The business also include

discharging of certain services on payment.

All activities are not business activities an thus the activities come

under business must have the following characteristics:

It involves creation of utilities. The activities must be a recurring one. It involves transfer of title by purchase and sale. It involves mutual benefit both to the buyer and the seller. It must be directed for earning one's livelihood.

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A business (also known as enterprise orfirm) is

an organization involved in the trade ofgoods, services,

or both to consumers.

Business is an economic activity, which is related with continuous and regular

production and distribution of goods and services for satisfying human wants.

All of us need food, clothing and shelter. We also have many other household

requirements to be satisfied in our daily lives. We met these requirements fromthe shopkeeper. The shopkeeper gets from wholesaler. The wholesaler gets from

manufacturers. The shopkeeper, the wholesaler, the manufacturer are doingbusiness and

therefore they are called as Businessman.

Definitions of Business

Stephenson defines business as, "The regular production or purchase and sale

of goods undertaken with an objective of earning profit and acquiring wealth

through the satisfaction of human wants."

According to Dicksee, "Business refers to a form of activity conducted with anobjective of earning profits for the benefit of those on whose behalf the activity

is conducted."

Lewis Henry defines business as, "Human activity directed towards producing

or acquiring wealth through buying and selling of goods."Thus, the term business means continuous production and distribution of goods

and services with the aim of earning profits under uncertain market conditions.

Features of Business

Characteristics or features of business are discussed in following points :-

1. Exchange of goods and services

https://en.wikipedia.org/wiki/Organizationhttps://en.wikipedia.org/wiki/Tradehttps://en.wikipedia.org/wiki/Good_(economics)https://en.wikipedia.org/wiki/Service_(economics)https://en.wikipedia.org/wiki/Consumerhttp://kalyan-city.blogspot.com/2011/03/what-are-economic-activities-types-of.htmlhttp://kalyan-city.blogspot.com/2011/03/what-are-economic-activities-types-of.htmlhttps://en.wikipedia.org/wiki/Consumerhttps://en.wikipedia.org/wiki/Service_(economics)https://en.wikipedia.org/wiki/Good_(economics)https://en.wikipedia.org/wiki/Tradehttps://en.wikipedia.org/wiki/Organization

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All business activities are directly or indirectly concerned with the exchange of

goods or services for money or money's worth.

2. Deals in numerous transactions

In business, the exchange of goods and services is a regular feature. A

businessman regularly deals in a number of transactions and not just one or two

transactions.

3. Profit is the main Objective

The business is carried on with the intention of earning a profit. The profit is areward for the services of a businessman.

4. Business skills for economic success

Anyone cannot run a business. To be a good businessman, one needs to havegood business qualities and skills. A businessman needs experience and skill to

run a business.

5. Risks and Uncertainties

Business is subject to risks and uncertainties. Some risks, such as risks of lossdue to fire and theft can be insured. There are also uncertainties, such as loss

due to change in demand or fall in price cannot be insured and must be borne by

the businessman.

6. Buyer and Seller

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Every business transaction has minimum two parties that is a buyer and a seller.

Business is nothing but a contract or an agreement between buyer and seller.

7. Connected with production

Business activity may be connected with production of goods or services. In this

case, it is called as industrial activity. The industry may be primary or

secondary.

8. Marketing and Distribution of goods

Business activity may be concerned with marketing or distribution of goods in

which case it is called as commercial activity.

9. Deals in goods and services

In business there has to be dealings in goods and service.

Goods may be divided into following two categories :-

1. Consumer goods : Goods which are used by final consumer for consumptionare called consumer goods e.g. T.V., Soaps, etc.

2. Producer goods : Goods used by producer for further production are calledproducers goods e.g. Machinery, equipments, etc. Services are intangible but

can be exchanged for value like providing transport, warehousing and

insurance services, etc.

10. To Satisfy human wants

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The businessman also desires to satisfy human wants through conduct of

business. By producing and supplying various commodities, businessmen try to

promote consumer's satisfaction.

11. Social obligations

Modern business is service oriented. Modern businessmen are conscious of their

social responsibility. Today's business is service-oriented rather than profit-

oriented.

A business (company, enterprise or firm) is a legally recognized

organization designed to provide goods and/or services to consumers.Businesses are predominant in capitalist economies. Most businesses

are privately owned. A business is typically formed to earn profit that

will increase the wealth of its owners and grow the business itself.

The owners and operators of a business have as one of their main

objectives the receipt or generation of a financial return in exchange

for work and acceptance of risk. Notable exceptions include

cooperative enterprises and state-owned enterprises. Businesses canalso be formed not-for-profit or be state-owned

All businesses have commercial objectives. For-profit businesses sell

products or services to generate revenue and earnings. Success

depends on the ability to gain more in revenue than is spent on fixed

and variable expenses. Nonprofit businesses must bring in enough

revenue to pay employees and cover the costs to administer or support

programs. Any money they have left over after expenses is put back

into the organization