Introduction to Bussiness.Doc
INTRODUCTION TO BUSINESS
Business
If a man remains busy with an activity which is production oriented is called Business.
Production means creation of utility. In a word business is a creation of utility.
Man can’t produce anything. Man can only procure resources from nature and can change its shape, place and time.
Utility: Utility means capacity to satisfy human need or want.
Something which has got the capacity to satisfy human need or want, we say that it has got utility.
Business organization: All organizations all over the world are engaged in either producing a product or rendering a service or generating an idea. These organizations are popularly known as Business organization.
NEED: Need refers to those goods and services which are essential for our living. We can’t survive without them. Our existence will be at stake (threatened) without them.
Example:
1. Food 2. Shelter 3. Clothing 4. Medical care 5. Education and Training.
WANT: Want refers to those goods and services which are not essential for our living but we require them for a better living. They make our life easy and enjoyable.
Example:
1. Mobile 2. Computer 3. Electricity 4. Television etc.
Need is limited but want is unlimited. Need can’t be created; it already exists but want may be created.
Definitions of Business • We all are involved in business in some-way or other. • Business is something with which we live. • Business needs people, people also need business. • Business needs people in the form of owner, manager, employee ands customer. • People form the core of business.
OWNER: Owner is a person who owns the business, he usually provides the capital. He sets the objectives, makes decisions. His decision is final in regard to his business. He takes the risk and enjoys the rewards that the business provides.
MANAGER: Manager is a person who is responsible for the operation of a business.
Managers may be of two types: 1. Owner
Business
If a man remains busy with an activity which is production oriented is called Business.
Production means creation of utility. In a word business is a creation of utility.
Man can’t produce anything. Man can only procure resources from nature and can change its shape, place and time.
Utility: Utility means capacity to satisfy human need or want.
Something which has got the capacity to satisfy human need or want, we say that it has got utility.
Business organization: All organizations all over the world are engaged in either producing a product or rendering a service or generating an idea. These organizations are popularly known as Business organization.
NEED: Need refers to those goods and services which are essential for our living. We can’t survive without them. Our existence will be at stake (threatened) without them.
Example:
1. Food 2. Shelter 3. Clothing 4. Medical care 5. Education and Training.
WANT: Want refers to those goods and services which are not essential for our living but we require them for a better living. They make our life easy and enjoyable.
Example:
1. Mobile 2. Computer 3. Electricity 4. Television etc.
Need is limited but want is unlimited. Need can’t be created; it already exists but want may be created.
Definitions of Business • We all are involved in business in some-way or other. • Business is something with which we live. • Business needs people, people also need business. • Business needs people in the form of owner, manager, employee ands customer. • People form the core of business.
OWNER: Owner is a person who owns the business, he usually provides the capital. He sets the objectives, makes decisions. His decision is final in regard to his business. He takes the risk and enjoys the rewards that the business provides.
MANAGER: Manager is a person who is responsible for the operation of a business.
Managers may be of two types: 1. Owner