BBM 1101: Intro to Business Studies Course Outline and Key Concepts
CHAPTER 1
1. Introduction
1.0 Definition of Business
1. An organization or enterprising entity engaged in commercial, industrial or professional
activities. A business can be a for-profit entity, such as a publicly-traded corporation, or a non-
profit organization engaged in business activities, such as an agricultural cooperative.
2. Any commercial, industrial or professional activity undertaken by an individual or a group.
3. A reference to a specific area or type of economic activity. The word Business in its economic
sense means human activities like production, extraction or purchase or sales of goods that are
performed for earning profits.
1.1 Features of Business
1.1.1 Exchange of goods and services
All business activities are directly or indirectly concerned with the exchange of goods or
services for money or money's worth.
1.1.2. Deals in numerous transactions
In business, the exchange of goods and services is a regular feature. A businessman regularly
deals in a number of transactions and not just one or two transactions.
1.1.3. Profit is the main Objective
The business is carried on with the intention of earning a profit. The profit is a reward for the
services of a businessman.
1.1.4. Business skills for economic success
Anyone cannot run a business. To be a good businessman, one needs to have good business
qualities and skills. A businessman needs experience and skill to run a business.
1.1.5. Risks and Uncertainties
Aba 101 Intro to Buss Chapter1: Introduction.
Odayo Frankline Page 1
, Business is subject to risks and uncertainties. Some risks, such as risks of loss due to fire and
theft can be insured. There are also uncertainties, such as loss due to change in demand or fall
in price cannot be insured and must be borne by the businessman.
1.1. 6. Buyer and Seller
Every business transaction has minimum two parties that is a buyer and a seller. Business is
nothing but a contract or an agreement between buyer and seller.
1.1.7. Connected with production
Business activity may be connected with production of goods or services. In this case, it is called
as industrial activity. The industry may be primary or secondary.
1.118. Marketing and Distribution of goods
Business activity may be concerned with marketing or distribution of goods in which case it is
called as commercial activity.
1.1.9. Deals in goods and services
In business there has to be dealings in goods and service.
Goods may be divided into following two categories :-
1. Consumer goods : Goods which are used by final consumer for consumption are called
consumer goods e.g. T.V., Soaps, etc.
2. Producer goods : Goods used by producer for further production are called producers
goods e.g. Machinery, equipments, etc. Services are intangible but can be exchanged for
value like providing transport, warehousing and insurance services, etc.
1.1.10. To Satisfy human wants
The businessman also desires to satisfy human wants through conduct of business. By
producing and supplying various commodities, businessmen try to promote consumer's
satisfaction.
1.1.11. Social obligations
Modern business is service oriented. Modern businessmen are conscious of their social
responsibility. Today's business is service-oriented rather than profit-oriented.
Aba 101 Intro to Buss Chapter1: Introduction.
Odayo Frankline Page 2
CHAPTER 1
1. Introduction
1.0 Definition of Business
1. An organization or enterprising entity engaged in commercial, industrial or professional
activities. A business can be a for-profit entity, such as a publicly-traded corporation, or a non-
profit organization engaged in business activities, such as an agricultural cooperative.
2. Any commercial, industrial or professional activity undertaken by an individual or a group.
3. A reference to a specific area or type of economic activity. The word Business in its economic
sense means human activities like production, extraction or purchase or sales of goods that are
performed for earning profits.
1.1 Features of Business
1.1.1 Exchange of goods and services
All business activities are directly or indirectly concerned with the exchange of goods or
services for money or money's worth.
1.1.2. Deals in numerous transactions
In business, the exchange of goods and services is a regular feature. A businessman regularly
deals in a number of transactions and not just one or two transactions.
1.1.3. Profit is the main Objective
The business is carried on with the intention of earning a profit. The profit is a reward for the
services of a businessman.
1.1.4. Business skills for economic success
Anyone cannot run a business. To be a good businessman, one needs to have good business
qualities and skills. A businessman needs experience and skill to run a business.
1.1.5. Risks and Uncertainties
Aba 101 Intro to Buss Chapter1: Introduction.
Odayo Frankline Page 1
, Business is subject to risks and uncertainties. Some risks, such as risks of loss due to fire and
theft can be insured. There are also uncertainties, such as loss due to change in demand or fall
in price cannot be insured and must be borne by the businessman.
1.1. 6. Buyer and Seller
Every business transaction has minimum two parties that is a buyer and a seller. Business is
nothing but a contract or an agreement between buyer and seller.
1.1.7. Connected with production
Business activity may be connected with production of goods or services. In this case, it is called
as industrial activity. The industry may be primary or secondary.
1.118. Marketing and Distribution of goods
Business activity may be concerned with marketing or distribution of goods in which case it is
called as commercial activity.
1.1.9. Deals in goods and services
In business there has to be dealings in goods and service.
Goods may be divided into following two categories :-
1. Consumer goods : Goods which are used by final consumer for consumption are called
consumer goods e.g. T.V., Soaps, etc.
2. Producer goods : Goods used by producer for further production are called producers
goods e.g. Machinery, equipments, etc. Services are intangible but can be exchanged for
value like providing transport, warehousing and insurance services, etc.
1.1.10. To Satisfy human wants
The businessman also desires to satisfy human wants through conduct of business. By
producing and supplying various commodities, businessmen try to promote consumer's
satisfaction.
1.1.11. Social obligations
Modern business is service oriented. Modern businessmen are conscious of their social
responsibility. Today's business is service-oriented rather than profit-oriented.
Aba 101 Intro to Buss Chapter1: Introduction.
Odayo Frankline Page 2
