1. Masters in Human Resource Management
Quaid e Azam College of
Commerce, University of Peshawar 6/3/2013 1

2. Points to be covered:
 Meaning of Business
 Definition of Business
 Nature of Business
 Problems of Business
 Scope of Business
 Importance of Business
 Functions of a Businessman
 Qualities of a Businessman
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Quaid e Azam College of
Commerce, University of Peshawar

3.  Term Business has special usage and
technical meaning as well.
 In its wider sense business means any activity
undertaken for earning profit.
 In limited or technical sense business means
only those activities that are undertaken for
earning profit within legal and moral limits.
 Business means any lawful economic activity
which is conducted to earn profit through
satisfaction human wants.
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Quaid e Azam College of
Commerce, University of Peshawar

4.  An enterprise which makes, distributes or
provides any article or service which the other
members of community need and are able
and willing to pay for it.
 Business may be defined as human activity
directed towards providing or acquiring
wealth through buying and selling.
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Quaid e Azam College of
Commerce, University of Peshawar

5.  Business includes those activities which
removes the hindrances/obstacles of time,
persons, and place in the exchange of goods.
 All those commercial and industrial activities
that provide goods and services to the people
with an objective to earn profit
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Quaid e Azam College of
Commerce, University of Peshawar

6.  Business is the activity that was chosen by the
Holy Prophet (S.A.W.W.) as his profession
 It offers 90% of the earnings to the mankind.
 Division of labour led to the earliest form of
trade that is called barter system.
 Lack of double coincidence of wants and
indivisibility of many goods were the main
problems with barter
 Introduction of money greatly facilitated the
exchange
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Quaid e Azam College of
Commerce, University of Peshawar

7.  Extensive specialization of labour established
mass production.
 Profit is the reward of entrepreneur that is
generally the highest due to the fact of facing
risk of loss.
 Entrepreneurs produce want satisfying goods
and services and exchange them for profit.
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Quaid e Azam College of
Commerce, University of Peshawar

8.  Enterprise
 Production
 Dynamism
 Dealing
 Market Provision
 Recurrence
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Quaid e Azam College of
Commerce, University of Peshawar

9.  Earning Profit
 Risks
 Finance
 Utilities
 Global Nature
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Quaid e Azam College of
Commerce, University of Peshawar

10.  Business Selection
 Business Location
 Business Size
 Product Demand
 Factors Combination
 Capital Provision
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Quaid e Azam College of
Commerce, University of Peshawar

11.  Physical Facilities
 Staff Selection
 Office Equipment
 Legal Requirement
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Quaid e Azam College of
Commerce, University of Peshawar

12.  A) Industry: Concerns engaged in production
of goods
1) Manufacturing: Raw Material into Finished
Goods
2) Construction
3) Extraction: Mining, Fishing, Agriculture
4) Genetic: Hatcheries, Poultry Farming, Fish
Farming, Nurseries etc
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Commerce, University of Peshawar 12

13. 1. Trade
 Home Trade a) Whole Sale b) Retail
 Foreign Trade a) Export b) Import
2 Aids to Trade
i. Mercantile Agents
ii. Transport
iii. Warehousing
iv. Banking
v. Insurance
vi. Communication
vii. Advertising
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Commerce, University of Peshawar 13

14. i. Teachers
ii. Doctors
iii. Lawyers
iv. Hairdressers
v. Mechanics
vi. Electricians
vii. Plumbers
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Commerce, University of Peshawar 14

15.  A) Industry: Concerns engaged in production of goods
1) Manufacturing: Raw Material into Finished Goods
2) Construction
3) Extraction: Mining, Fishing, Agriculture
4) Genetic: Hatcheries, Poultry Farming, Fish Farming, Nurseries etc
B) Commerce:
1. Trade
 Home Trade a) Whole Sale b) Retail
 Foreign Trade a) Export b) Import
2 Aids to Trade
i. Mercantile Agents
ii. Transport
iii. Warehousing
iv. Banking
v. Insurance
vi. Communication
vii. Advertising
C) Direct Services
i. Teachers
ii. Doctors
iii. Lawyers
iv. Hairdressers
v. Mechanics
vi. Electricians
vii. Plumbers
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Commerce, University of Peshawar 15

16. Industry Commerce
 A) Industry: Concerns
engaged in production of
goods
1) Manufacturing: Raw
Material into Finished
Goods
2) Construction
3) Extraction: Mining,
Fishing, Agriculture
4) Genetic: Hatcheries,
Poultry Farming, Fish
Farming, Nurseries etc
 Commerce:
1. Trade
 Home Trade a) Whole
Sale b) Retail
 Foreign Trade a)
Export b) Import
2 Aids to Trade
i. Mercantile Agents
ii. Transport
iii. Warehousing
iv. Banking
v. Insurance
vi. Communication
vii. Advertising
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Quaid e Azam College of
Commerce, University of Peshawar 16

17. 1) Production
2) Distribution
3) Employment
4) Efficient Utilization of Resources
5) Innovation
6) Economic Progress
7) Better Living Standard
8) Foreign Relations
9) Collection of Indirect Taxes
10) Govt Policies Designing
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Commerce, University of Peshawar 17

18. 1) Financing and Risk Taking
2) Managing Plan, organize, staff, direct, control
3) Marketing 4Ps
4) Purchasing & Inventory Management
5) Production & Operation Management
6) Accounting
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Commerce, University of Peshawar 18

19.  Business Aptitude
 Managerial guts
 Technical
 Financial Capability
 Business Ethics
 Creative and Trend setter
 Ability to reap opportunities
 Adaptive/Adjustive
 Independence
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Commerce, University of Peshawar 19

20.  Firmness
 Effeciency
 Healthiness
 Cooperation
 Industrious
 Team Spirit
 Honesty
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Commerce, University of Peshawar 20