ppt on forms of buisness

1. Name – Amit gupta
Class - 10th I
Subject - B.st.

2. What is business?
 A business, also known as an enterprise or a firm, is
an organizationinvolved in the trade of goods, services, or both to consumers .
Businesses are prevalent in capitalist economies, where most of them
are privately owned and provide goods and services to customers in exchange
for other goods, services, or money. Businesses may also be not-for-
profit or state-owned. A business owned by multiple individuals may be
referred to as a company.
 The etymology of "business" stems from the idea of being busy, and implies
socially valuable and rewarding work. Business can refer to a particular
organization or, more generally, to an entire market sector, e.g. "the music
business". Compound forms such as agribusiness represent subsets of the
word's broader meaning, which encompasses all activity by suppliers of goods
and services.

4.  Sole proprietorship: A sole proprietorship is owned by one person and operates
for their benefit. The owner may operate the business alone or with other people. A sole
proprietor has unlimited liability for all obligations incurred by the business, whether
from operating costs or judgements against the business. All assets of the business
belong to a sole proprietor, including, for example, computer infrastructure,
any inventory, manufacturing equipment and/or retail fixtures, as well as any real
propertyowned by the business.
 Partnership: A partnership is a business owned by two or more people. In most
forms of partnerships, each partner has unlimited liability for the debts incurred by the
business. The three most prevalent types of for-profit partnerships are general
partnerships, limited partnerships, and limited liability partnerships.
 Cooperative: Often referred to as a "co-op", a cooperative is a limited liability
business that can organize for-profit or not-for-profit. A cooperative differs from a
corporation in that it has members, not shareholders, and they share decision-making
authority. Cooperatives are typically classified as either consumer cooperatives or worker
cooperatives. Cooperatives are fundamental to the ideology of economic democracy.

6.  Business
 Business refers to an economic activity in which people regularly engages in production
or purchase of goods for sale, or exchange of goods or supply of services to satisfy the
needs of other people with an ultimate motive to earn profits. The word business is
derived from the word 'busy'. Thus, "business" relates to the state of being busy.
 Characteristics of Business:-
 Economic activity: It is an economic activity because the object around doing it is
always to earn money or livelihood and not out of love, affection, sympathy, etc.
 Earning Profit: Purpose of doing business is to earn income by way of profit. No
business can survive for long without profits. Possible efforts to maximize profits, by
increasing the volume of sales or reducing costs is always seen.
 Uncertainty of return: Returns in business is always uncertain. The capital invested
may return in the way of profit or may be completed vanished in the way of losses, this is
where the future of the business was decided whether it continues or shutdowns.
 Risk: Risk is always involved in here in the form of losses. It is caused by some
unfavorable or undesirable events.

7.  Profession
 Profession is an economic activity in which people are engaged to earn means
for their livelihood by using their Skills and special knowledge that is acquired
from many studies and practice in a particular field. It is obviously an economic
activity since the ultimate goal for taking up this is to earn some money.
Characteristics of Profession
 Economic activity: Profession is considered to be an economic activity
because it is undertaken with the object of earning money or livelihood and
not because of love, affection, sympathy or any other sentimental reason.
 Good conduct: When the Professionals are more skilled and experienced with
regard to their work they earn good conduct which in turn gives them an
opportunity to earn the maximum reward. No conduct; no work.
 Scope for maximizing incomes: It all goes with the experience in the
concerned field. Professionals like lawyers, doctors, etc obviously need to face
hard days in the very beginning when they make an entry into their respective
field. In course of time with good conduct they can make a good incomes.
 Qualification: Unlike businessmen, expertise and training is essential for
professionals to get on with their work to make good income.

8.  Employment
 Employment refers to an economic activity where an individual work for a
company or and organization and get remunerated. Those who gets employed
by others (companies or organisations) are employees and those who employs
individuals are employers (may be person, company or an organization). Every
employee needs certain qualification and training as prescribed by the
employer.
 Characteristics of Employment
 Economic activity: Employment obviously dropped under economic activity
as it is done to earn some means for the livelihood and absolutely not because
of love, affection, sympathy or any other sentimental reason.
 Qualification: This is very essential for any employee. Unless the employee
possesses the prescribed qualifications for a job he never gets appointed fr the
same.
 No risk: Guaranteed job; regular remunerations are always the best features of
this economic activity called employment untill and unless the employee
behaves properly and never go on his own at work place.
 Certainty return: Remuneration for an employee is always certain and is
regular untill he continues in the job and is not fired out of it.
 Conduct: This is a very essential thing for any employee. Norms of behaviour
laid down by the employer are to be followed very strictly else will be fired.

10.  Every business enterprise has certain objectives which regulate and generate its
activities. Objectives are needed in every area where performance and results
directly affect survival and prosperity of a business. Various objectives of
business may be classified into four broad categories as follows:
 1. Economic Objectives:
 Business is basically an economic activity. Therefore, its primary objectives are
economic in nature. The main economic objectives of business are as follows:
 (i) Earning profits:
 A business enterprise is established for earning some income. It is the hope of
earning profits that inspires people to start business. Profit is essential for the
survival of every business unit.
 Profit is also necessary for the expansion and growth of business. Profits ensure
continuous flow of capital for the modernisation and extension of business
operations in future.
 (iii) Innovations:
 They develop new technology, introduce new designs and new tools and
processes to minimise costs and to satisfy ever increasing wants of customers.
In order to create customers business has to explore new markets and attract
more customers. It has also to retain old customers by providing better services
to them.

11.  2. Social objectives
 Business does not exist in a vacuum. It is a part of society. It cannot survive and
grow without the support of society. Business must therefore discharge social
responsibilities in addition to earning profits.
 (i) Supplying desired goods at reasonable prices:
 Business is expected to supply the goods and services required by the society.
Goods and services should be of good quality and these should be supplied at
reasonable prices. It is also the social obligation of business to avoid
malpractices like boarding, Black marketing and misleading advertising.
 (ii) Fair Remuneration to employees:
 Employees must be given fair compensation for their work. In addition to
wages and salary a reasonable part of profits should be distributed among
employees in recognition of their contributions. Such sharing of profits will
help to increase the motivation and efficiency of employees.
 (iii) Employment Generation:
 Business should provide opportunities for gainful employment to members of
the society. In a country like India unemployment has become a serious
problem and the Government is unable to offer jobs to all.
 Therefore, provision of adequate and full employment opportunities is a
significant service to society.

12.  3. Human Objectives
 Business is run by people and for people. Labour is a valuable human
element in business. Human objectives of business are concerned with the
well-being of labour . These objectives help in achieving economic and
social objectives of business. Human objectives of business are given
below:
 i. Labour welfare:
 Business must recognise the dignity of labour and human factor should
be given due recognition. Proper opportunities should be provided for u
tilising individual talents and satisfying aspirations of workers.
 ii. Developing human resources:
 Employees must be provided the opportunities for developing new skills
and attitudes. Human resources are the most valuable asset of business
and their development will help in the growth of business.
 Business can facilitate self- development of workers by encouraging
creativity and innovation among them.

14.  Business activities are undertaken to satisfy human wants by producing
goods or rendering services.
We may classify business activities on the basis of functions into two
broad categories
(a) Industry and
(b) Commerce.
Industry is concerned with the production and processing of goods. This type of
business units are called ‘industrial enterprises’ which produce consumer goods
as well as machinery and equipments. On the other hand, ‘commerce’ includes
all those activities which are necessary for the storage and distribution of goods.
Such units are called ‘commercial enterprises’ which include trading and service
activities like transport, banking, insurance
and warehousing.

16.  Industry and its Types
Industry means production of goods for sale by the application of human or mechanical
power. In other words, industry refers to economic activities which are connected with
raising, producing and processing of goods and services.
Characteristics of Industry
The main characteristics of industry are as follows:-
• Industry refers to the productive aspect of business.
• Production is done by the application of human or mechanical power.
• It creates form utility to natural or partly processed goods.
• It is concerned with the production of both producer and consumer goods.
• Industrial activities are regulated by different laws.
• It involves continuous operation.
Types of Industries
Industries are divided into two broad categories:
(i) Primary industries
(ii) Secondary industries.
Primary industries include all those activities which are connected with extraction,
producing and processing of natural resources. These industries may be further sub-
divided into two types: (a) extractive and (b) genetic.Secondary industries are concerned
with the materials which have already been produced at the primary stage. For example,
mining of iron ore is a primary industry, but manufacture of steel is a secondary industry.

17.  a) Extractive Industries:
Extractive industries are concerned with the extraction of materials from the earth, sea
and air such as mining, farming, fishing and hunting etc. Products of these industries are
used either directly for consumption such as food grains, fruits and vegetables or as raw
materials such as cotton, sugar-cane, etc.
b) Genetic Industries:
Genetic industries include activities connected with rearing and breeding of animals and
birds and growing plants. Reproduction and multiplication is the main activity in these
industries, such as, agriculture, animal husbandry, dairy, poultry, pisciculture etc. Main
products are milk, wool, butter, cheese, meat, egg, fish, seeds of plants, etc.Secondary
industries may also be of two types: (a) manufacturing, and (b) construction.
a) Manufacturing Industries :
Industries engaged in the conversion of raw materials or semi-finished products into
finished product are called manufacturing industries. Cotton is converted onto textiles and
iron one is converted into in these industries.It creates a form utility of the product.
b) Construction Industries :
The activities of Construction industries include erection of buildings, bridges, roads,
railways canals etc. Their output do not consists of movable goods. It makes use of the
output of other industries like brick,cement, steel etc.

18. 
Commerce is the sum total of all the activities connected with the placing of the
product before the ultimate consumer. It provides the necessary link between the
producer and the consumer of goods . Commerce is defined ‘as activities
involving the removal of hindrances in the process of exchange’.
The main characteristics of commerce are as follows:
(i) Commerce is the sum total of activities which facilitate the availability of
goods to consumers from different producers.
(ii) It aims at ensuring proper distribution of goods.
(iii) It adds different type of utilities to the goods by making goods available
at the right time and the right place to the people who need them.
(iv) It includes trade and auxiliary to trade
Characteristics of Trade
The main characteristics of trade are as follows:
(i) Trade is regarded as the primary activity in commerce;
(ii) It means exchange of goods and services for price;
(iii) It helps in directing the flow of goods to the most profitable market;
(iv) It helps to equalise the supply of and demand for goods in different
markets both national and international.

19.  Classification of Trade
Trade may be classified into (i) Home Trade or Internal Trade and (ii) Foreign Trade or
External Trade.
i) Home Trade:
Home Trade means trade carried on within the boundaries of a country.The primary object
of home trade is to bring about proper distribution of goods within the country. It may be
divided into two types
(a) Wholesale Trade and (b) Retail Trade
(a) Wholesale Trade: Wholesale trade involves buying goods from
producers and selling them in small quantities to retailers. The wholesaler generally deals
in large quantities of goods of a limited number of varieties. He serves as a connecting link
between the producer and the retail dealer.
(b) Retail Trade:
A retail trade consists of selling goods directly to the consumers in small quantities. A
retailer usually purchases goods from wholesalers or manufacturers and deals in a variety
of goods of different manufacturers.
ii) External Trade:
External trade refers to trade between two countries. It implies buying and selling of goods
by traders of two different countries. It creates a very wide market for goods produced in
different countries. External trade involves (a) Export and (b) Import.
Export is concerned with the sale of goods to foreign countries.
Import trade relates to the purchasing of goods from other countries.

21.  The term business risk refers to the possibility of inadequate profits or even losses due to
uncertainties e.g., changes in tastes, preferences of consumers, strikes, increased
competition, change in government policy, obsolence etc .Every business organization
contains various risk elements while doing the business.
 For example, an owner of a business may face different risks like in production,risks due
to irregular supply of raw materials, machinery breakdown, labor unrest, etc. In
marketing, risks may arise due to different market price fluctuations, changing trends
and fashions, error in sales forecasting, etc. In addition, there may be loss of assets of the
firm due to fire, flood, earthquakes, riots or war and political unrest which may cause
unwanted interruptions in the business operations. Thus business risks may take place in
different forms depending upon the nature and size of the business.
 Internal risks arise from factors (endogenous variables, which can be controlled) such as
human factors (talent management, strikes), technological factors (emerging
technologies), physical factors (failure of machines, fire or theft), operational factors
(access to credit, cost cutting, advertisement). External risks arise from factors
(exogenous variables, which cannot be controlled) such as economic factors (market
risks, pricing pressure), natural factors (floods, earthquakes), political factors
(compliance and regulations of government).

22.  Classification
 The Business risk is classified into different 5 main types[7]
 1) Strategic Risk: They are the risks associated with the operations of that
particular industry . These kind of risks arise from
 a) Business Environment: Buyers and sellers interacting to buy and sell goods
and services, changes in supply and demand, competitive structures and
introduction of new technologies.
 b) Transaction: Assets relocation of mergers and acquisitions, spin-offs,
alliances and joint ventures.
 c) Investor Relations: Strategy for communicating with individuals who have
invested in the business.
 2) Financial Risk: These are the risks associated with the financial structure
and transactions of the particular industry.
 3) Operational Risk: These are the risks associated with the operational and
administrative procedures of the particular industry which are very common in
today's generation.
 4) Compliance Risk(Legal Risk): These are risks associated with the need to
comply with the rules and regulations of the government.
 5) Other risks: There would be different risks like natural disaster(floods) and
others depend upon the nature and scale of the industry.