Business Organization presentation

Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
BBA(G)
(Second Semester)
BUSINESS ORGANIZATION
Paper Id 17102
Topic:
CONCEPT OF BUSINESS
By:Ms. Dipti Jain
AP (MGMT)

ECONOMIC ACTIVITIES
Activities which are undertaken by people with
the object of earning money are known as
economic activities. These activities are concerned
with production, exchange and distribution of
goods and services.

EXAMPLES OF ECONOMIC
ACTIVITIES
• Production of goods by a manufacturer in a
factory
• Selling of goods by retailer
• Medical profession carried on by a doctor
• Working as a teacher in a school
• Advertisement of goods by advertising agency

Types of Economic
Activities
Profession Employment Business

CHARACTERISTICS OF BUSINESS
• Sale, transfer or exchange
• Dealings in goods and services
• Regularity in dealings
• Profit Motive
• Risk or uncertainity

Scope of business
BUSINESS
INDUSTRY
COMMERCE
TRADE AND AUXILIARIES TO TRADE

INDUSTRY
EXTRACTIVE GENETIC
MANUFACTURING CONSTRUCTION

MEANING OF COMMERCE
Commerce includes all those activities which:
• Establish a link between the products and
consumer of goods, and
• Maintain a smooth and uninterrupted flow of
goods from producers to consumers.

COMMERCE
HINDRANCE OF PERSON
HINDRANCE OF PLACE
HINDRANCE OF TIME
HINDRANCE OF RISK
HINDRANCE OF EXCHANGE
HINDRANCE OF KNOWLEDGE

COMMERCE
AUXILIARIES
TO TRADETRADE

TRADE
INTERNAL INTERNATIONAL
WHOLESALE
RETAIL
IMPORTS EXPORTS
ENTREPOT

AUXILIARIES TO TRADE
WAREHOUSING
BANKING
INSURANCE
ADVERTISING
PACKING
TRANSPORTATION
MARKET INFORMATION

INTERRELATIONSHIP BETWEEN
INDUSTRY, TRADE AND
COMMERCE

INDUSTRY
COMMERCETRADE

INTER-RELATIONSHIP BETWEEN INDUSTRY, TRADE
AND COMMERCE
• Business is divided into two categories:
industry and commerce. Commerce is again
sub-divided into trade and aids to trade.
Practically all of them are closely related to
each other. They are inseparable. All of them
are parts of the whole business system.

INTER-RELATIONSHIP BETWEEN INDUSTRY,
TRADE AND COMMERCE
• Industry and commerce are closely related to
each other. Industry cannot exist without
commerce and commerce cannot exist
without industry. Because every producer has
to find his market for his products to sell. But
the producer has no direct connection with
the buyers or consumers. Hence, industry
needs commerce.

Commerce is concerned with the sale, transfer or
exchange of goods and services. Hence commerce
needs industry for the production of goods and
services. Commerce makes the necessary
arrangement for linking between producers and
ultimate consumers. It includes all those activities that
are involved in buying, selling, transporting, banking,
warehousing of goods, and insurance for safeguarding
the goods.

AND COMMERCE
• Trade includes sale, transfer or exchange of goods. It
does not include other functions of commerce like
transportation, insurance, banking, warehousing, etc.
If there were no trade, the producers would have to
find customers for their products. Therefore without
trade there would be little need for commerce.
Similarly trade without aids to trade is meaningless.

AND COMMERCE
• In conclusion, we can say that industry, trade
and commerce are inter-related with each
other. Industry is concerned with production
of goods and services and commerce arranges
its sales; but the actual operation of sales is in
the hands of trade. So they cannot work
independent.

Business Organization presentation

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Business Organization presentation