INTRODUCTION

Introduction to Business
Lesson 01
 Any activity to earn
profit.
DEFINITION The word “business”
is derived from the
term “busyness.”
Entrepreneurshi  A phenomenon in which a person searches for
p an opportunity and try to avail it.
Components  Industry

of business  Commerce
  Conversion of raw material into finished goods.
Industry  This is a form utility.
  Primary Industry
 Extractive Industry _ Extraction of underground
Types of resources.
Industry  Genetics _ People doing business by changing
genes.
  Secondary Industry
 Construction _ Construction of buildings, roads,
bridges etc.
Types of  Manufacturing _ Conversion of raw material into
industries final goods.
 Services _ Banking, consultancy, accountant,
Lawyer, Interior decorator, designer, music
composer etc.
  All those activities which start from the warehouse
Commerce of the manufacturer to the buyer.
  Trade
 Trade means buying and selling
Types of
commerce  Aid to trade
 Institutions that are meant and build to assist and
support the trading process.
  Labor _ People working in an organization.
 Capital _ Amount invested by investor in the
business.
Factors of
 Entrepreneurship _ Management ability of the
production people who are running the business.
 Physical Resources _ Land, labor, building, vehicles,
machinery etc.
Economic  A system for allocation of resources.
System
Types of  Planned Economy
Economic  Free market Economy
Systems
Types of  External Forces
 Factors found outside an organization.
environment  These factors are not controllable by the
al forces organization.
Types of  Internal Forces
environment  Factors within the organization.
 These are controllable by the organization.
al forces
  Strengths

SWOT  Weaknesses

Analysis  Opportunities
 Threats