MGT211 Introduction to Business

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MGT211  Introduction to Business

https://drive.google.com/drive/folders/1roLCoUR26Dy30IlkVdVijdHbR3atRuth?usp=sharing

 CONCEPT OF BUSINESS

Literally, the word “business” means the state of being busy. Generally, the term business

includes all human activities concerned with earning money. In other words, business is an

activity in which various persons regularly produce or exchange goods and services for

mutual gain or profit. The goods and services produced or purchased for personal use are

not included in “business”.

DEFINITION

 James Stephenson says that:

“Every human activity which is engaged in for the sake of earning profit may be

called business.”

COMPONENTS OF BUSINESS

Business bears the following components:

 Industry

 Commerce

INDUSTRY

Industry is connected with the production and preparation of goods and services. It is a

place where raw material is converted into finished or semi-finished goods, which have the

ability to satisfy human needs or can be used in another industry as a base material. In

other words, industry means that part of business activity, which is concerned with the

extraction, production and fabrication of products.

KINDS OF INDSTRY

1. Primary Industry

2. Secondary Industry

COMMERCE

Commerce is the second component of business. The term “commerce” includes all

activities, functions and institutions, which are involved in transferring goods, produced in

various industries, from their place of production to ultimate consumers.

In simple words, “trade and aids to trade” is called commerce.


CHARACTERISTICS OF BUISNESS

Following are the essential characteristics of a good business:

1. Capital

Capital is the lifeblood of every business. It is the most essential and important element of

business. In case of deficiency, loans can be taken from various financial institutions.

2. Creation of Utility

Utility is an economic term referring to that characteristic of a certain commodity, which

can satisfy any human need. Business creates utility, which gives benefit to the entire

society as well as the businessmen.

3. Dealing in Goods and Services

Every business deals with sale, purchase, production and exchange of goods and services for

some consideration.

4. Employment

Business is a good source of employment for its owners as well as for other people, for

example, employees, agents, transporters etc.

5. Islamic Process

Business is an Islamic way of earning living. Income from business is known as profit, which

is Rizq-e-Halal. The Holy Prophet Muhammad himself did prosperous business.

6. Motive

The motive of business is to earn profit. Otherwise it will not be termed as business.

7. Organization

Every business needs an organization for its successful working. A proper organization is

helpful in the smooth running of business and achieving the objectives.

8. Productions or Purchase of Goods

A businessman deals in production or purchase of goods. These goods are supplied to the

people. So, it is necessary that more goods should be produced so that demand of people

may be fulfilled.

Comments

  1. Unknown26 December 2021 at 09:34

    ye mids ki prepration ka liya kaafi to ni ha

    ReplyDelete
  2. iqra khalid26 December 2021 at 11:00

    open the one-drive link then you will get all the stuff

    ReplyDelete

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