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Basic Concept of Business
Definition of Business
The word ‘Business’ is come from the English words
‘Busi+Ness’. Business is the legal process of
production and purchasing and selling to earn profit.
 B.O Wheeler said , “Business is an institution
organized to provide goods and services to the society
under the incentive of gain.”
 Skinner said , “Business is the exchange of goods ,
services or money for mutual benefit or profit.”
Definition of Business
 In a word, “Business means creation of utility”.
From the functional point of view, the business is
related all kinds of legal works of producing , marketing
and exchanging products and services with the intension
to earn profit .
Functions of Business
There are many function need for running a business.
These are given below:-
 Planning : To make a plan is so essential for
production, distribution and investment. Without
planning any business can’t achieve their destiny.
 Production : Production or creating utility is the
primary function. By producing goods and delivering
services business organizations try to fulfill the needs of
the people.
 Purchase : To continue the process of production
businessmen purchase raw-materials from the suppliers.
Functions of Business
 Sale : Sale means transfer of the ownership of goods
and delivery services to another person.
 Insurance : In business there are many types of risks
such as deflation , price falling, fire and accident etc .
For that reason should take insurance policy.
 Market research : By market research businessmen get
the information about the customer’s need , demand ,
purchasing power , expectation.
Functions of Business
 Grading & Standardization : Grading means to
classify the products according to their criteria , quantity
, value and nature. Standardization means to divide the
product according to the quality.
 Advertisement & Publicity : Business organization
should make advertisement and publicity to create
customer and inform them about the shape ,size , quality
and price of production.
Importance of Business
There are many importance of business , these are
given below :-
 Economic Importance
1.Proper utilization
2.Division of labor
3.Utilization of developed technology
4.Encouraging savings
5.Increase government revenue
6.Growth of personal & national income
7.Development of banking and insurance
Importance of Business
 Social Importance
1.Supply of goods and service
2.Create employment
3.Improvement of the living standard
4.Development of efficiency , culture and industrial
arts
5.Urbanization
6.Help to industry
7.Development of International Relationship
Is Business an Occupation ?
People are involved in various works for livelihood .
Involving in the different occupation people are try to earn
money . For that reason early stage of civilization people
are involved in business to earn money for livelihood .
But in this moment there arises a question that :
“Is business an occupation”?
Is Business an Occupation ?
If we want to this question at first we should mention
difference between business and occupation . Difference in
below :-
A). Special knowledge is needed to be professional ,
But for businessman it is not essential .
B).Professional need to acquire knowledge by training
and experience . But in business it is not necessary.
C).To involve in any occupational organization is
needed to be a member of the representative professional
organization . But the persons who want to conduct
business need not do these activities.
Is Business an Occupation ?
D).In profession; main objective is to deliver service
for livelihood. But in business earning money or profit is
main objective.
E).People of any profession should follow the ethical
codes for the guidance of conduct , but the businessman
has no certain ethical codes as guidance of conduct.
From the analysis , we can say business is not treated as
profession . But all types of occupational works are
treated as profession.
Thank You

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Basic concept of business

  • 1. Basic Concept of Business
  • 2. Definition of Business The word ‘Business’ is come from the English words ‘Busi+Ness’. Business is the legal process of production and purchasing and selling to earn profit.  B.O Wheeler said , “Business is an institution organized to provide goods and services to the society under the incentive of gain.”  Skinner said , “Business is the exchange of goods , services or money for mutual benefit or profit.”
  • 3. Definition of Business  In a word, “Business means creation of utility”. From the functional point of view, the business is related all kinds of legal works of producing , marketing and exchanging products and services with the intension to earn profit .
  • 4. Functions of Business There are many function need for running a business. These are given below:-  Planning : To make a plan is so essential for production, distribution and investment. Without planning any business can’t achieve their destiny.  Production : Production or creating utility is the primary function. By producing goods and delivering services business organizations try to fulfill the needs of the people.  Purchase : To continue the process of production businessmen purchase raw-materials from the suppliers.
  • 5. Functions of Business  Sale : Sale means transfer of the ownership of goods and delivery services to another person.  Insurance : In business there are many types of risks such as deflation , price falling, fire and accident etc . For that reason should take insurance policy.  Market research : By market research businessmen get the information about the customer’s need , demand , purchasing power , expectation.
  • 6. Functions of Business  Grading & Standardization : Grading means to classify the products according to their criteria , quantity , value and nature. Standardization means to divide the product according to the quality.  Advertisement & Publicity : Business organization should make advertisement and publicity to create customer and inform them about the shape ,size , quality and price of production.
  • 7. Importance of Business There are many importance of business , these are given below :-  Economic Importance 1.Proper utilization 2.Division of labor 3.Utilization of developed technology 4.Encouraging savings 5.Increase government revenue 6.Growth of personal & national income 7.Development of banking and insurance
  • 8. Importance of Business  Social Importance 1.Supply of goods and service 2.Create employment 3.Improvement of the living standard 4.Development of efficiency , culture and industrial arts 5.Urbanization 6.Help to industry 7.Development of International Relationship
  • 9. Is Business an Occupation ? People are involved in various works for livelihood . Involving in the different occupation people are try to earn money . For that reason early stage of civilization people are involved in business to earn money for livelihood . But in this moment there arises a question that : “Is business an occupation”?
  • 10. Is Business an Occupation ? If we want to this question at first we should mention difference between business and occupation . Difference in below :- A). Special knowledge is needed to be professional , But for businessman it is not essential . B).Professional need to acquire knowledge by training and experience . But in business it is not necessary. C).To involve in any occupational organization is needed to be a member of the representative professional organization . But the persons who want to conduct business need not do these activities.
  • 11. Is Business an Occupation ? D).In profession; main objective is to deliver service for livelihood. But in business earning money or profit is main objective. E).People of any profession should follow the ethical codes for the guidance of conduct , but the businessman has no certain ethical codes as guidance of conduct. From the analysis , we can say business is not treated as profession . But all types of occupational works are treated as profession.