Definition of business
• Business: profit and non-profit seeking activities of
those engaged in purchasing or selling goods and
services to satisfy society’s needs and wants.
What is business?
• Activity seeking profit
• Provides goods/services
• Satisfy standard of living- quality of life [..Higher in
USA, Germany & Japan]
• Nonprofit organizations
• Not-for-profit organizations: businesslike
establishments that have primary objectives other than
returning profits to their owners
Evolution of Business
The Service &
Evolution of Business in BD
• Service Industries
Revenue, Profit and loss
Revenue -- The total amount of money a business takes in during
a given period by selling goods and services.
Profit -- The amount of money a business earns above and
beyond what it spends for salaries and other expenses.
Loss -- Occurs when a business’ expenses are more than its
Objectives of Business
Need and Needs satisfaction
• The multiplicity of human needs
o Humans have a wide range of unlimited physical and psychological needs to
o Range from the most basic need for food to the need for self esteem
o Society has limited resources to satisfy needs:
• Natural resources
• Human resources