This document outlines key points about business that will be covered, including definitions of business, the nature and scope of business, problems in business, and the importance and functions of business. It also discusses the qualities needed to be a successful businessman. Specifically, it provides definitions of business as a lawful activity undertaken for profit, outlines the areas of industry, commerce, and direct services, and lists functions of businessmen like financing, risk-taking, and management.

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
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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
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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
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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
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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
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8.  Enterprise
 Production
 Dynamism
 Dealing
 Market Provision
 Recurrence
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Quaid e Azam College of
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9.  Earning Profit
 Risks
 Finance
 Utilities
 Global Nature
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Quaid e Azam College of
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10.  Business Selection
 Business Location
 Business Size
 Product Demand
 Factors Combination
 Capital Provision
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11.  Physical Facilities
 Staff Selection
 Office Equipment
 Legal Requirement
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Quaid e Azam College of
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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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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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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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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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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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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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20.  Firmness
 Effeciency
 Healthiness
 Cooperation
 Industrious
 Team Spirit
 Honesty
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