Business refers to an economicactivity in which people regularlyengage in purchase productionand sale of goods and services,on a regular basis with the viewof earning profit by satisfying
An Economic Activity – Business is considered to be an economic activity because it is undertaken with the object of earning money or livelihood Regular Basis – Business involves dealings in goods or services on a regular basis. One single transaction of sale & purchase, therefore does not constitute business. Earning Profit – One of the main
Th isis the first stage of the production process.Raw materials are farmed or extracted from the land or sea People who work in the primary JOBS sector are : Mining • Farmers growing crops or rearing Farming livestock Fishing • Miners extracting such things as coal, gold
ExtractiveIndustry – These industries extract or draw out product from natural resources. Product of these industries are usually transformed into many other useful goods by manufacturing industries. For e.g. – Mining, Hunting , Lumbering Genetic Industry – These Industries remain engaged in breeding plants and animals for their use in further reproduction. For e.g. – Poultry Farming, Breeding Farms e.t.c
JOBSThese are concerned with providing Retail support Wholesaleservices to Primary & Secondary. Banking Examples are- &Insurance SolicitorsTransport Tourism &Banking LeisureInsurance Driving InstructorsWarehousing HairdresserCommunication
Trade is an essential part ofcommerce. It refers to saletransfer of exchange of goods.It helps in making the goodsproduced available to ultimateconsumers and users.
Trade may be classified into two broad categories-Internal TradeExternal Trade
Internal TradeThis is divided into two categories:Wholesale : when goods are purchased and sold in bulk , it is known as wholesale trade.Retail : when goods are purchased and sold in comparatively smaller quantities , for final consumption it
External or foreign trade consist of the exchange of goods and services between person or organisations operating in two or more countries. It is divided into three parts-
Import : If goods are purchased from another country, it is called import trade.Export Trade : If goods are sold to other countries it is known as export trade.Entrepot Trade : when goods are imported for export to other countries, it is known as entrepot trade.
These activities help in removing various hindrances which arise in connection with the production and distribution of goods.Parts of Auxiliaries Trade-Transportation & CommunicationBanking & FinanceInsuranceWarehousingAdvertising
Objective of business can be classified into three major categories :Organisational ObjectiveSocial ObjectivesPersonal Objectives
Organisational or economic ObjectivesSurvival : It is the basic objective of any6 business. Management must ensure the survival of the organisation .In order to survive, an organisation must earn enough revenues to cover costs.Profit : Only survival is not sufficient for the business. Management has to ensure that the organisation makes a profit which is very important for the success of business.
Social ObjectivesSocial objectives involve the creation of benefits for the society. Management of an organisation must consistently crate economic value for the society. This included:o Supply of quality product at reasonable prices.o Using Friendly methods of productions.o Generating employment opportunities to
Personal ObjectivesPersonal objectives are related to the employees of the organisation. Management should satisfy their diverse needs such as-Financial needsSocial needsHigher level needs(Personal growth and development)