Men have unending necessities or want. Without fulfilling those necessities, men cannot live or survive Wealth or resources having utility can satisfy human wants. These resources are limited or scarce. human efforts to earn resources or money are Known as economic activities. The process of economic activities to produce products or render serves to earn profit, is Known as business profit is the excess of sales revenues over the expenses of earning those and is Known as Economic surplus of business in the socialism Terminology.
Business is everywhere in the world and everyone is linked with or engulfed by the business. the food we eat, the cloth we wear, the car are ride or drive, the television we watch or enjoy etc. are produced, distributed and sold by the business. To be able to buy these things, we earn money working mainly in a business. The bank where we keep the saved portion of the money is also doing business thus “A business is an organization engaged in producing goods and or rendering services to make estimated or realized economic surplus Known profit”
Products, available in the Market, are created by the operation of money business. Let us think about a piece of bread (a loaf): first a farmer grew the wheat with the help of fertilizer supplied by a chemical fertilizer company and other input; when it became matured (ripen), He harvested it using a machine he bought (may be, with the help of bank loan) from a manufacturer. He carried the wheat by a truck to mill which ground it into flour and sold it to bakery, may be company. That company brought the flour by train or truck to its plant, where it was combined with other ingredients bought from other suppliers to make bread the bakery, than wrapped the bread in plastic or polyethylene bought from another company. using the trucks or vans, bought from a vehicle manufacturer, the baker transported the bread to a retail store, where we are able to purchase it.
Business denotes those human activities, which are directed toward creating utilities and acquiring wealth through the process of buying and selling and the direct or indirect services of various agencies -01 aid in the production and distribution commodities. Thus business includes all activities in the arena of manufacturing, trading or merchandising transportation, warehousing, banking and finance, insurance promotion, etc.
That caters to the needs of ultimate consumers and aid in the production and distribution of goods. As the matter of fact, All material substances supplied by the creator to which the businessman, by their different activities or serves, create new or additional utility for the purpose of making those useful to satisfy human want. The businessmen to earn income or profit always do predication utility creation or value addition. So business may be defined as the creation, transportation and exchange or utilities in from of goods and services for the making profit or economic surplus. In wider perspective, any systematic or organization course of activates to care profit thought production and sale of goods service is business. Thus, business includes industry, commerce and direst services.
That caters to the needs of ultimate consumers and aid in the production and distribution of goods. As the matter of fact, All material substances supplied by the creator to which the businessman, by their different activities or serves, create new or additional utility for the purpose of making those useful to satisfy human want. The businessmen to earn income or profit always do predication utility creation or value addition. So business may be defined as the creation, transportation and exchange or utilities in from of goods and services for the making profit or economic surplus. In wider perspective, any systematic or organization course of activates to care profit thought production and sale of goods service is business. Thus, business includes industry, commerce and direst services.
Industry, in an organization of activities to create utility or value. Different types of industrial activities are extraction of natural resources, construction, manufacturing, mining, fishing, forestry, agriculture, etc. Industry deals with production.
Production, is down with the ultimate aim of consumption. Producers and consumer stay at two extreme points or poles at different places. There are some hindrances between producer and consumers, and the distribution process requires the removal of those hindrances with the help of some services. These services are transportation, insurance, warehousing or finance, trade, advertising or promotion etc. Which in aggregate mean commerce. Thus, commerce is a branch of business lice industry.
Direct services, or professional services, like management, engineering, consultancy, audit and assurance service, Information Technology (IT), etc. assist the process of production and distribution. These are also preformed with an aim to earn profit. So, these are also areas of business. Therefore, business includes industry commerce and direct services.
What is Business?
Business is a risky activity. Risk is inherent in business. ‘Where is no risk, there is no gain business’, is a proverb. Business is defined by scholars differently, which are as follows:
“Business denotes human activities which produce or acquire wealth thought buying or selling of goods.”-business organization, Dr. B.B. Ghosh.
“Business is basically an activates of people working singly or with others for the purpose of producing and selling the goods or services that our country requires.”-Introduction to business, Raymond E. Glos and Harold A. Baker.
“Busness is institution organized and operated to provide goods and services to the society under the incentive of gain.”-Business: An Introduction Analysis – bayer O. wheeler.
” Business includes those human activities related to production and distribution of goods services and jobs with a view to earn profit.” – Fundamentals of business, Roger W. Boson.
Professor Hney, “organization is a harmonious adjustment of specialized part for the accomplishment of some common purposes.”
Thus, organization of economic activities for profit is business.