Business refers to commercial activities that provide goods and services with the goal of earning a profit. It involves the combination of human, capital, and natural resources along with technology. Key characteristics of business include an entrepreneur dealing in goods/services, earning profit, and taking on elements of risk to create utility. Objectives of business are economic like profit and market creation, social like employment and quality products, and human like rewarding and satisfying employees. Business consists of industry, which produces goods, and commerce, which involves buying and selling, including trade and trade aids like transportation. Risk is an inherent part of business due to factors outside one's control such as natural events, competition, policy changes, and demand fluctuations.

1. Introduction To Business
Chapter No:1
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2. What is business
Meaning of Business
Literary meaning Technical meaning
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3. Meaning of Business
Literary meaning
 In literary sense, the term business
means being busy.
 The condition of business
Technical meaning
 Technically it means all commercial
and industrial activities that provide
goods and services to the people for
the sake of profit.
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4. Business is the combination of following things
Human
resources
Capital
resources
Natural
resources
Technology
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5. Activities not including in the Business
Social services
Personal consumption
Religious activities
Illegal activities
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6. Characteristics of Business
Entrepreneur
Deals with
goods and
services
Earn the
profit
Element of
risk
Creation of
utility
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7. Objectives of Business
Objectives
Economics
objectives
Social objectives
Human
objectives
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8. Economics objectives
 Earning the profit
The main purpose of business is to earn profit
 Creation of market
Every businessman creates is own consumer for its products, the more
customer created the wider will market.
 Innovation
 If a business want to stay in the market the best possible use of resources and continually
make innovation, bring new product to the market
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9. Social objectives
 More Employment opportunities
 A business provides employment to the people, its increase the
standard of living of peoples
 Avoidances of anti-social practices
 Its not fair that a businessman produce doing anti-social actives
such as hoarding, smuggling, overcharging ect.
 Supply of quality product
 The social responsibility of business is product good quality
products to the market.
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10. Human Objectives
Employees should
be properly
rewarded
A healthy condition
must be provide to
the workers
Job satisfaction of
workers
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11. Components of Business
Business
Industry Commerce
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12. Meaning of industry
 The term industry refers to that of business activity which is related to
extraction, production of products.
 Industry produce semi-finished or finished goods for consumers.
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13. Types of industry
Industry
Extractive industry Genetic industry
Manufacturing
Industry
Construction
industry
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14. Commerce
 Commerce is concern with buying and selling of goods and services. Its
includes all those activities which is related to the transfer of goods from
the place of production to consumers.
 Commerce divided onto two categories
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commerce
Trade Aid to trade

15. Types of Trade
 Retail trade
 Retailing consist of all activates which are related to the sale of goods and services to
the final consumers.
 Wholesale
 Trade involves the purchase of goods in large quantity
 External trade
 When there any purchase or sale of goods between two countries its called external
trade or foreign trade
 Internal trade
 The buying and selling of goods within boundary of a country is called internal trade
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16. Aid to Trade
Transport
Insurance
warehouse
Banking
Advertisement
Mercantile
agents
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17. Qualities of a Successful businessman
Knowledge of
business
Ability to plan
and organize
Foresight
Ethical
standard
Creativity
Technical skill
Financial
management
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18. What is Business Risk
 There is always a chance of suffering loss in the business. This danger of
loss unforeseeable events in future in the business named as risk.
 Business risk is the essential elements of business, but it can be minimized.
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19. Causes of Risk
Natural factors
Competition
Mismanagement
Change in
demand
Change in Govt
policy
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