MGT211 Introduction to Business
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.
ye mids ki prepration ka liya kaafi to ni ha
ReplyDeleteopen the one-drive link then you will get all the stuff
ReplyDelete