3. INTRODUCTION
In order to satisfy human needs require different
types of goods and services. The form of producing of
good and services to those who are in need of them.
These are undertaken with the object of earning money
or livelihood. Hence, it is called an economic activity.
Business is a major economic activity since it is
concerned with the production and sale of goods and
services that people need.
4. Activities undertaken with the object of earning
money or livelihood are known as economic activities .
for example ; a teacher goes to school, a manager to
his office, a doctor to his clinic , a worker to the
factory and a lawyer to the court
5. Activities which are
undertaken to derive
psychological satisfaction or
for religious or social
obligations, or are performed
out of love, sympathy,
patriotism and similar
sentiments are called non
economic activities.
6. Business means busyness or the state of being
busy . However, in a specific sense, business includes
all occupations in which people regularly engage in
activities with a view to earning profit. Such activities
may consist of production or purchase of goods for
sale , or exchange of goods or providing services to
satisfy the needs of others
7. CHARACTERISTICS OF BUSINESS ACTIVITIES
An economic activity since it is concerned with the production and
distribution of goods and service.
Every business enterprise either produce goods or assembles them
from producers to be sold to consumers. Services denotes facilities
offered to consumers.
Sales of exchange of goods and service for the satisfaction of human
needs.
Business consisting of dealing in goods and service.
Regularity or continuity of dealing in business activities.
Profit is the main motto of exchanging goods and services.
Business involves risk (Chance of loss)
8. The occupation of the
people or economic
activities can be classified
into three broad categories
Business, Profession and
Employment
BUSINESS
PROFESSION
EMPLOYMENT
9. Business refers to those
economic activities consist of
production or purchase of
goods for sales or exchange
goods or providing services
with the object of earning
profit. Those who are engaged
in the business activities earn
income in the form of profit.
10. A profession may be
defined as an occupation
which involves the rendering
of personal services of special
and expert. Those engaged in
professions are known as
professionals. The specialised
services are rendered to their
clients for a remuneration
called fees.
11. Employment is a kind of
human occupation where a
person perform the work
assigned to him by his
employer under an
agreement or rules of
services in return for a
remuneration called salary or
wages .
EMPLOYMENT
12.
13.
14. Industry refers to economic
activities connected with the raising,
production, conversion , processing
or fabrication of products. An
industry may be primary or
secondary.
15.
16. Which are concerned with the extracting,
producing, and processing of natural resources.
Such type of industry may be further sub divided
into two;
17. EXTRACTIVE INDUSTRIES
Which are engaged in the
extraction or production of
wealth from soil, water or air
extracting minerals from
under the earth, fishing,
procuring timber from forests,
etc... are activities of
extractive industries.
18. Genetic industries refers to
those activities which are
undertaken for producing,
breeding, multiplying certain
species of plants or animals
with the object of earning
profits from their sales. Eg;
cattle breeding, poultry farming
etc...
19.
20.
21. Analytical industry - this industry analyse and separates different
element from the same minerals eg.. oil refinery
Synthetical industry - this kind of industry combines various
ingredients into new product eg...cement industry
Processing industry - here involves successive stages of
manufacturing process to get finished goods eg.. sugar or paper
industry.
Assembling industry - assembles different components into a new
product. eg.. computer or television industry etc...
22. CONSTRUCTION INDUSTRY
It refers to those activities
concerned with the construction of
building, roads, bridges, canals,
etc.. their products are not
marketed like other industries.
23. It provide support service
to primary and secondary
industries. They also
include various activities
relating to trade.
24.
25. Commerce may
be defined as “ the sum
total of all those processes
which are engaged in the
removal of the hindrances
of person , place and time
in the exchange of
commodities.
COMMERCE = TRADE + AIDS TO TRADE
26. TRADE
TRANSPORT
WAREHOUSING
STORAGE
INSURANCE
BANKING AND FINANCING
ADVERTISING
SALESMANSHIP
27. It means buying and
selling of goods . But, there are
various other activities that
facilitate trade. These activities
called services or auxiliaries to
trade. This include transport,
banking, insurance,
warehousing, packaging etc...
28.
29. It also called internal trade or domestic trade consist of sale,
transfer or exchange of goods within country. The primary object of
a home trade is to bring about equitable distribution of goods
within the country.
It involves buying goods from producers in large quantities
and selling them to retailers in small quantities.
Retail trade consists in the supply of the requirements of the
consumers in small quantities needed by them . they buy large
quantity from wholesalers and give to small quantity to customers.
30.
31. Foreign trade consists of trade among different nations.
Here goods are moved from one country to another. Foreign
trade is mostly conducted on wholesale basis. It is also known as
international trade. It may be further divided into;
- which consist of purchasing of goods from
supplier of a foreign country for home use.
- which consist of the selling of home goods to
foreign countries
which consists of importing of foreign
produced goods from some countries with the object of re-
exporting them to some other countries.
32. Organisations engaged in different types of
business activities are called business enterprises. It
may be an industrial , trading or service enterprises.
These service enterprises facilitates movement,
storage, finance, risk coverage and sales promotion
of goods. They also help the consumers in satisfying
their needs and desires.
33. Production usually takes
place in particular locations. Here
there is an obstacle or barrier of
place. This is removed by transport
through various modes - road, rail, or
coastal shipping transport. Along
with transport facility there arises the
need for communication facilities.
These will help producers, traders
and consumers exchange information
with one another.
34. Business requires funds for
acquiring assets, purchasing raw
materials and meeting day to day
expenses. Finance or fund which is the
foundations of business activities is
provides by banks. They accept deposit
from the public and provided credit to the
public. They generally lend money by
providing overdraft and cash credit
facilities, loans and advances and
discounting of bills.
35. In business , there are
innumerable risk such as
destruction of property by fire,
earthquake, theft, damages of
goods held in stock, loss of goods
in transit, etc... so, insurance has
been protects property and human
beings. On payment of a nominal
amount called premium, the
amount of loss or damages is
compensates by the insurance
company.
36. Usually goods are
produced in factories or small
scale business units are not sold
or consumed immediately. They
are to be kept in good condition
and make them available as and
when needed. Warehouse help to
storage and stabilize price by
equalizing supplies.
37. It is one of thee most
important devices of promoting
sales, especially consumer
goods like soaps, detergent,
electronic goods etc...it helps in
provide required information and
inducing them to buy particular
items.
38. Business activities are undertaken primarily to earn profit
because, profit is the lifeblood of the business. Business activities
cannot be undertaken in isolation from the rest of the society.
Thus business activities should be conducted to fulfil the
expectations of the society and they will have multiplicity of
objectives, including social responsibility to survive and prosper
in long run. It may be stated here that profit is the primary
objective but not the only one.
39. It is a source of income, and it provides the means for livelihood
for the businessman.
Profit may earned to provide growth and expansion of the
businessman
Profit earning ability is considered to be the index of business
success.
Profit is the reward for the entrepreneur’s taking business risk.
Profit provide economic power and status to businessman
It can raise funds on easy terms.
40.
41. Business activities
can be sustained only if it
has a good standing in the
market. This necessitates
of the business to lay
down objectives to
establish a place in the
market and protect itself
from competition.
42. Innovation means exploring
and discovering ways and
means by which products are
made more useful to customers.
The business world is highly
competitive. In order to capture
the market, new or improved
products must be offered for
sale.
43. Productivity is
ascertained by comparing the
value of inputs. It is usually
taken as the measure of
efficiency. Every business
must aim at greater
productivity by making the
best possible use of the
scarce resources.
44. All business
establishments require
physical and financial
resources. Physical
resources include plant,
machinery, offices etc... by
financial resources mean
fund to produce and supply
goods and services to their
customers
45. The primary
objectives of the
business is to earn
profit. It is driving
force behind every
enterprises. Profit has
multiple objectives.
46. Good managers are needed by business
enterprises to conduct and co ordinate various
business activities. Managers must be motivated
well to get the best out of them. Manager
performance and development must be an
important objectives of any business.
47. Workers performance and attitude very much
determine the productivity and profitability of any
business enterprise . every business enterprises
must provide the workers with incentives to
improve their performance.
48. Social responsibility refers
to the obligations of
businessmen to pursue those
policies, to make those
decisions which are desirable in
terms of the objectives and
values of our society.
49. Risk means possibility of loss. In business, risk is
unavoidable. Business enterprise usually face two types of risk
;Speculative and pure.
involves both chance for a gain or loss.
Such risk arise due to change in the market conditions like
fluctuations in demand and supply, change in tastes and habits of
customers.
involves the possibility of loss or even no loss. Fire,
theft, earthquake, strike, etc... are example of pure risk.
50. Natural causes -
damages from flood, fire,
earthquakes, etc.,
Human causes - caused
by theft, bad debts,
invalidated contracts and
other acts of general
public.
51. Risk arising from
competition - in the form of
entry of new products into
the market, low cost of
products, new inventions
etc..,
Price fluctuations - this may
totally upset stock values,
selling price, budget
proposals, cost and income
forecast.
