2. CONCEPT OF BUSINESS.
• The term is derived from the word busy. Thus,
business means being busy.
• In specific sense- ‘it refers to an occupation in
which people regularly engage in the activities
related to purchase, production and sale of
goods and services with a view of earning a
profit and satisfy the needs of other people.
4. • ECONOMIC ACTIVITIES- the activities
performed to earn a livelihood
• example: Employment
• NON-ECONOMIC ACTIVITIES- the activities
performed out of sentiments.
• example: Charity
5. TYPES OF ECONOMIC ACTIVITIES
ECONOMIC
ACTIVITY
BUSINESS PROFESSION EMPLOYMENT
6. BUSINESS
• It may be defined as, “an economic activity
involving the production and sale of goods
and services undertaken with a motive of
earning profits by satisfying human needs in
the society.
• Example: Sunfeast, Puma, etc.
7. PROFESSION
• It is an activity involving specialized services
provided by well qualified experts in return for
professional fees.
• Example: Doctors, Lawyers, Chartered
Accountants.
8. EMPLOYMENT
• It stands for performing work as per service
contract under an employer in return for
salaries and wages.
• Example: Managers, Teachers, laborers.
9.
10. CHARACTERISTICS OF BUSINESS
ACTIVITIES
• An economic activity
• Production and Procurement of goods and
services
• Sale or exchange of goods and services
• Dealings in goods and services on a regular basis
• Profit earning
• Uncertainty of return
• Element of risk
12. OBJECTIVES OF THE BUSINESS
• PRIMARY OBJECTIVE- PROFIT MAKING
• REASONS:
• It is the main source of income
• Used for all the requirements of the business
• Indicates efficiency
• Builds reputation.
13. • SECONDARY OBJECTIVES-
• Market standing
• Innovation
• Productivity
• Physical and financial resources
• Earning profits
• Employee performance and development
• Social responsibilities
14. BUSINESS RISKS
• It refers to the possibility of inadequate profits
or even losses due to uncertainties or
unexpected events.
• TYPES:
• SPECULATIVE RISK: can result in a loss or a
profit
• PURE RISK: it is a possibility of a loss or no
loss.
15. NATURE OF BUSINESS RISK
• Arise due to uncertainties
• Is an essential part of every business
• Depends upon the nature and size of the
business
• Profit is the reward for taking risk
16. CAUSES OF BUSINESS RISK
• Natural causes
• Human causes
• Economic causes
• Other causes
17. STARTING A BUSINESS
• Selection of line business
• Size of the firm
• Choice of the firm
• Location
• Finance or Capital
• Physical facilities
• Plant layout
• Workforce commitment
• Tax planning
• Launching the enterprise.
