Meaning Of Business

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

352

Pages:

1
Author:

JJIssac

MEANING OF BUSINESS  Business refers to all profit-producing activities that provide goods and services to satisfy customer needs. It involves work efforts connected to producing wealth. A business makes, distributes or provides needed products or services that customers can and will pay for. The essence of business is producing and selling for profit by satisfying customer needs through integrated activities bridging producers and customers. Characteristics Activities of Key characteristics activities include: Business of business  Production and acquisition of goods to be supplied and sold  Regular dealings in goods and services ensuring continuity  Sale or transfer of goods for profit  Profit as reward for services rendered and efficiency  Uncertainty and risk-taking focusing on the unknown future Objectives Organizations of Business Major objectives are:  Generate profits, the prime differentiator from non-business entities  Grow bigger operations  Develop by improving goods, services, processes etc. in size and Survive through adaptation in the competitive environment Other objectives relate to market share, sales increases, new product launches etc. Social objectives include satisfying consumer needs, paying fair wages etc. Scope and Nature of Business Businesses involve:  Industry - Production of goods through manufacturing and construction  Commerce - Distribution of produced goods through trade Types of Industries  Primary industries: Extractive (fishing, mining, agriculture) or Genetic (agriculture, forestry, fish farming)  Secondary Manufacturing materials into Construction infrastructure)  Service enterprises: Providing services like transport, insurance, vehicle repair etc. industries: (converting products) or (buildings, In summary, business refers to regular, integrated profit-seeking activities of producing and distributing needed goods and services to satisfy customer needs. It has economic objectives like profits and growth as well as social objectives. The scope covers a range of goods producing and distributing industries and service enterprises.