This document provides an overview of the nature of business. It defines business as an organization that obtains resources like funds, labor, and equipment to provide goods or services to customers in exchange for money. The document outlines key characteristics of business like the sale of goods/services, continuity, and profit motive. It also discusses the components/systems of business including personnel, finance, marketing, and production functions. The primary objective of modern business is stated as making a profit, with secondary objectives like creating customers, innovating new products, providing value, employment, and fair returns. Principles of organization, essentials of success, qualities of successful businessmen, and business ethics are also summarized.

1. Nature of Business
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Dr. R. PREMA
Assistant Professor in
Commerce
Business Organisation and
Office Management

4. “The State of being Busy”
“Satisfaction of Human wants”
Barter System
Introduction

5. A business entity is an organization that
needs fund, labour, machines or inputs to
provide goods or services to the customers
with the transactions through the medium
of money or in monetary terms. But such
an organization can take many forms.
Introduction

6. Dicksee (1980), “Business refers to a form
of activity conducted with an objective of
earning. profits for the benefit of those on
whose behalf the activity is conducted.”
Definition - Business

7. Characteristics of Business
Sale, transfer or exchange of
gods and services for value
Continuity of dealings
Profit motive
Uncertainty and risk
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8. Scope or Components of Business

9. Business and Profession
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 Business - Earn Profit by supplying goods
and Services
 Profession – An advice or service rendered by
one or a group of persons which does not
include manufacturing or selling of goods.

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Establishment
Nature of Operations
Motive
Qualifications
Investment
Reward
Transferability of interest
Code of conduct and ethics

11. Business System
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Personnel
Function
Finance
Function
Marketing
Function
Production
Function
Business
System
Commerce

12. Objectives of Modern Business
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Primary
Secondary
Objectives

13. Primary Objective
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Profit motive

14. Secondary Objectives
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Economic
• Creation of
customers
• Innovating
new
commodities
Social
• Supply of
good quality
at fair prices
• Employment
Opportunitie
• Fair returns
to Investors
Human
• Fair deal to
employees
• Developing
Human
Resources
• Job
satisfaction
employees

15. Principles of Organisation
1. Clear definition of objectives and policies
2. Division of labour
3. Supervision and control
4. Expansion
5. Standardization
6. Simplicity
7. Recurring the personnel
8. Duties and Responsibilities
9. Financial Incentives

16. Essentials of a Successful Business
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Planning
Objectives
Research
Location
& Size
Sound
Organisation
Adequate
Finance
Effective
Managemen
t
Effective
Distribution
System

17. Qualities of Successful Businessman
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Determination and will power
Accuracy
Capacity to take quick decisions
Alertness
Honesty

18. Qualities of Successful Businessman
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Co-operative attitude
Leadership
Training
Energy
Other qualities

19. Business Ethics
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Concerned with moral values or acts
Application of general principles
Growing awareness of public
Render justice to various parties

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