The Meaning Of Business

The meaning of business can be stated in

many different ways.
Some scholars believe that
“Business is people performing activities
necessary in the producing and selling of
products and services”
Economists believe that “business is the
creation and distribution of material goods
and services that will satisfy human needs
and wants, both individual and institutions”
 A Business is an Activity
• That Produces an output
• Which is consumed in order to satisfy the
need/want.
• With the aim of earning profit.
• Resources are used up in this process which are
the factors of production i.e,land,labour,capital
and entrepreneur.
• Thus business combines
human,material,technological and financial
resources carried on for profit.
 Definitions Of Business
• The term business has been defined differently
by various writers.
• “Business is any enterprise which
makes,distributes or provide any service which
other members of the community need and are
within pay for it.”
• “Business may be defined as an activity in which
different persons exchange something of value
whether goods or services for mutual gain or
services”
• Ronald defines business that produces or sells
goods and services to make profit “
 Definition
of business
• Business is an institution organised & operated to
provide goods & services to society under incentive of
private gain.
• Any person or organization that produces useful goods
or services is called a business.
• Business includes those activities in which people
working individually or more often in association with
others, strive to produce & to distribute the goods &
services that are necessary to the well being, comfort &
happiness of individuals & for the benefits of society as a
whole.
• Business is a legal economic activity which is carried on
with the aim of carrying profit.
 Characteristics Of Business
• 1:Entrepreneur
• 2:Deals in goods and Services
• 3:Involves production or exchange of goods
• 4:Series of deals
• 5:Desire to earn profit
• 6:Involves element of risk
• 7:creation of utilities
 Activities Excluded from
business
• 1:Social Services activities
• 2:Personal consumption activities
• 3:Religious activities
• 4:Illegal activities
IMPORTANCE OF BUSSINESS IN
THE PRESENT DAY WORLD

1: Mass production of goods

2: Expansion of market
3: Innovations
4: Fast means of communication and transport
5: Provision of credit by banks
6: Insurance
7: Employment
8: Business supplies services
9: business has helped in raising standard
of living
10: Source of ravines
11: Urbanization
 QUALITIES OF A SUCCESSFUL
BUSINESSMAN
1: Knowledge of business
2: Ability to plan n organize
3: Foresight
4: Ethical standard
5: Initiative and creativity
6: Steadfast and courageous
7: Adaptability to changes
8: Industrious
9: Sound financial management
10: technical skills
11: Team spirit
12: Conceptual skill
13: Honesty