Business Organisation
Q. What is Business? Discuss in detail the different types of profession
and also describe importance of business.
Meaning: The word “business” means the state of being busy. So “business” means all those
human activities which are related to the production and distribution of goods and services
with the object of earning profit. E.g. Farmer, Fisherman, Manufacturer.
Business also includes those activities which indirectly help in production and exchange of
goods such as transport, insurance, banking, warehousing etc. Every business enterprise
whether it is carried on a small or a large scale deals in goods and services for earning of money.
If an enterprise is to survive, grow and expand, it must yield profit. So business includes all the
commercial and industrial activities that provide goods and services to the people with an
objective to earn profit.
Definition: According to L.H Haney “Business may be defined as a human activity directed
towards producing or acquiring wealth through buying and selling goods”
Importance of Business
1. Economic development:
Business is important for economic development. Concept of true business is used in industries
and commerce. Industries use men, money, materials, methods and machines and help to
create employment. Commerce is the concept of exchange goods/services at national and
international levels. It helps to earn foreign currency by export business too. Therefore,
business helps in economic development
2. Utilizing natural resources
Every country has diverse natural resources. Business must be directed towards proper and
efficient utilization of resources. Business utilizes the resources like water, minerals, ores and
so to achieve its own goals. But resources must be utilized without exploitation.
3. Creation of utility:
Business creates place and time utility. It helps to satisfy the needs of human beings. Financial
utility is to be maximized.
4. Employment:
Business helps to provide job to people. It provides various types of managerial or technical job.
Many types of business houses like hotels, industries, and transport companies are established
for business which helps to solve the unemployment problem.
5. Revenue generation:
Business is the source of revenue generation. It pays taxes, royalties, fees, custom duties, and
other things which help to generate government revenue.
6. Earning foreign currency:
It is the source of earning foreign currency. Business can earn foreign currency through
exporting the goods and services.
7. Development of country:
Development of industries helps to utilize natural resources, create time and place utility,
provide employment opportunities, help in revenue generation and earning foreign currency. All
,these things help in the development of the economy of the country and the economic
development is the major factor that can develop the nation to a wider sense.
8. Provide investment opportunities:
Establishment of new industries and commercial fields are the major source of investment.
Further the profit owned by the investors after the successful operation of business helps to
ensure larger amount of saving which can be invested in the newer future for pension of current
business or establishment of newer business. Thus business helps in providing investment
opportunities.
9. International relations:
Business is the medium for development of national and international relationship. It helps to
maintain harmonious relation among the various countries. There can be mutual understanding
and better diplomatic relationship among the countries. Import and export is the major base for
international relationship.
10. Self sufficiency:
It helps in achieving countries and individuals self sufficiency. It also helps in improving the
living standard of people by reducing the dependency.
Functions of Business
0. Organizing function:
It helps to organize all the activities. It organizes men, Machine, materials, money and methods.
It performs different activities and all activities are organized properly
2. Financing function:
It is related to money. It helps in maximum utilization of resources. Bank is a financial company.
All the activities related to money are defined in this function.
3. Production function:
The main function of business is to produce goods and commodities and transfer them to right
place at right time. It helps to complete needs of human beings.
4. Distributing function:
It helps in the transfer of goods/services from producers to customers. It transfers right product
at right time in right place.
5. Personnel function:
It deals with human activities. It is related o the utilization of people to perform different
activities. It is also called staffing function. It helps in management of resources.
6. Managing function:
It helps in management of business. It includes planning, organizing, controlling, coordinating,
decision making and so on. It helps making activities of people effective.
7. Research and development function:
It helps in improvement of product. It works under the taste, desire and preference of the
customers. In it various marketing, strategies, skills, knowledge and experts are used. Research
and development is the main way to achieve profit with customer satisfaction
, Q. Differentiate between Public sector and Private
sector.
BASIS FOR
PUBLIC SECTOR PRIVATE SECTOR
COMPARISON
Meaning The section of a nation's economy, The section of a nation's economy,
which is under the control of which owned and controlled by
government, whether it is central, private individuals or companies is
state or local, is known as the Public known as Private Sector.
Sector.
Basic objective To serve the citizens of the country. Earning Profit
Raises money Public Revenue like tax, duty, penalty Issuing shares and debentures or by
from etc. taking loan
Areas Police, Army, Mining, Health, Finance, Information Technology,
Manufacturing, Electricity, Education, Mining, Transport, Education,
Transport, Telecommunication, Telecommunication, Manufacturing,
Agriculture, Banking, Insurance, etc. Banking, Construction,
Pharmaceuticals etc.
Benefits of Job security, Retirement benefits, Good salary package, Competitive
working Allowances, Perquisites etc. environment, Incentives etc.
Basis of Seniority Merit
Promotion
Job Stability Yes No
Q. What is Business? Discuss in detail the different types of profession
and also describe importance of business.
Meaning: The word “business” means the state of being busy. So “business” means all those
human activities which are related to the production and distribution of goods and services
with the object of earning profit. E.g. Farmer, Fisherman, Manufacturer.
Business also includes those activities which indirectly help in production and exchange of
goods such as transport, insurance, banking, warehousing etc. Every business enterprise
whether it is carried on a small or a large scale deals in goods and services for earning of money.
If an enterprise is to survive, grow and expand, it must yield profit. So business includes all the
commercial and industrial activities that provide goods and services to the people with an
objective to earn profit.
Definition: According to L.H Haney “Business may be defined as a human activity directed
towards producing or acquiring wealth through buying and selling goods”
Importance of Business
1. Economic development:
Business is important for economic development. Concept of true business is used in industries
and commerce. Industries use men, money, materials, methods and machines and help to
create employment. Commerce is the concept of exchange goods/services at national and
international levels. It helps to earn foreign currency by export business too. Therefore,
business helps in economic development
2. Utilizing natural resources
Every country has diverse natural resources. Business must be directed towards proper and
efficient utilization of resources. Business utilizes the resources like water, minerals, ores and
so to achieve its own goals. But resources must be utilized without exploitation.
3. Creation of utility:
Business creates place and time utility. It helps to satisfy the needs of human beings. Financial
utility is to be maximized.
4. Employment:
Business helps to provide job to people. It provides various types of managerial or technical job.
Many types of business houses like hotels, industries, and transport companies are established
for business which helps to solve the unemployment problem.
5. Revenue generation:
Business is the source of revenue generation. It pays taxes, royalties, fees, custom duties, and
other things which help to generate government revenue.
6. Earning foreign currency:
It is the source of earning foreign currency. Business can earn foreign currency through
exporting the goods and services.
7. Development of country:
Development of industries helps to utilize natural resources, create time and place utility,
provide employment opportunities, help in revenue generation and earning foreign currency. All
,these things help in the development of the economy of the country and the economic
development is the major factor that can develop the nation to a wider sense.
8. Provide investment opportunities:
Establishment of new industries and commercial fields are the major source of investment.
Further the profit owned by the investors after the successful operation of business helps to
ensure larger amount of saving which can be invested in the newer future for pension of current
business or establishment of newer business. Thus business helps in providing investment
opportunities.
9. International relations:
Business is the medium for development of national and international relationship. It helps to
maintain harmonious relation among the various countries. There can be mutual understanding
and better diplomatic relationship among the countries. Import and export is the major base for
international relationship.
10. Self sufficiency:
It helps in achieving countries and individuals self sufficiency. It also helps in improving the
living standard of people by reducing the dependency.
Functions of Business
0. Organizing function:
It helps to organize all the activities. It organizes men, Machine, materials, money and methods.
It performs different activities and all activities are organized properly
2. Financing function:
It is related to money. It helps in maximum utilization of resources. Bank is a financial company.
All the activities related to money are defined in this function.
3. Production function:
The main function of business is to produce goods and commodities and transfer them to right
place at right time. It helps to complete needs of human beings.
4. Distributing function:
It helps in the transfer of goods/services from producers to customers. It transfers right product
at right time in right place.
5. Personnel function:
It deals with human activities. It is related o the utilization of people to perform different
activities. It is also called staffing function. It helps in management of resources.
6. Managing function:
It helps in management of business. It includes planning, organizing, controlling, coordinating,
decision making and so on. It helps making activities of people effective.
7. Research and development function:
It helps in improvement of product. It works under the taste, desire and preference of the
customers. In it various marketing, strategies, skills, knowledge and experts are used. Research
and development is the main way to achieve profit with customer satisfaction
, Q. Differentiate between Public sector and Private
sector.
BASIS FOR
PUBLIC SECTOR PRIVATE SECTOR
COMPARISON
Meaning The section of a nation's economy, The section of a nation's economy,
which is under the control of which owned and controlled by
government, whether it is central, private individuals or companies is
state or local, is known as the Public known as Private Sector.
Sector.
Basic objective To serve the citizens of the country. Earning Profit
Raises money Public Revenue like tax, duty, penalty Issuing shares and debentures or by
from etc. taking loan
Areas Police, Army, Mining, Health, Finance, Information Technology,
Manufacturing, Electricity, Education, Mining, Transport, Education,
Transport, Telecommunication, Telecommunication, Manufacturing,
Agriculture, Banking, Insurance, etc. Banking, Construction,
Pharmaceuticals etc.
Benefits of Job security, Retirement benefits, Good salary package, Competitive
working Allowances, Perquisites etc. environment, Incentives etc.
Basis of Seniority Merit
Promotion
Job Stability Yes No
