Bachelor of Business Administration-I

Course Name-Computer Applications for Business

Topic:- Basic concepts of business

Reference Video Link

https://www.youtube.com/watch?v=ZobEVTGl5Jo

Study Material
Business is either your occupation, profession, or trade, or is a commercial activity which
involves providing goods or services in exchange for profits.

Profits in business are not necessarily money. It can be a benefit in any form which is
acknowledged by the business (entity) involved in the business (activity).

Business Definition
A business (entity) is an organisation or any other entity engaged in commercial,
professional, charitable or industrial activities. It can be a for-profit entity or a not-for-profit
entity and may or may not have a separate existence from the people/person controlling it.

A business (activity) is a commercial activity which involves providing goods or services

with a primary motive of earning profits.

Concept Of Business
The business concept is the fundamental idea behind the business. The business model, plan,
vision, and mission are developed based on this concept. Uber for example, was started on
the concept of aggregating taxi drivers and providing their services on demand under one
brand. Every other business strategy was developed based on this concept.

Objective Of The Business

The business objective is what makes the business go on and conduct its activities in a long
run. It is the reason why the business exists. While most of the people argue that profit
making is the core objective of every business. Few have come up with the new underlying
objective.

According to the traditional concept, business exists only to earn profits by providing the
goods and services to the customers. According to the modern concept, the underlying
objective of every business is customer satisfaction as this is what results in most profits. If
the customer is satisfied, business excels.
Types Of Business
Businesses can be classified into but are not limited to 4 types. These are –

Manufacturing
Manufacturing businesses are the producers who develop the product and sell it either
directly to the customer or the middlemen to conduct sales. Examples of manufacturing
businesses are steel factories, plastic factories, etc.

Service
This type of business deals in selling intangible goods to the consumers. Unlike tangible
goods, services cannot be stored or separated from the provider.

Service firms offer professional services, expertise, commission-based promotions, etc.

Examples include salons, schools, consultancy etc.