Business is concerned with commercial activities on regular basis with the aim to earn a profit.
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What is a Business?
It is an activity that deals with the buying and selling of goods and services for mutual gain. It is an integral part of economic activities which are directly concerned with money. For example, shopkeepers/retailers purchase grocery items from wholesalers and sell to customers.
“Business is an activity directed towards producing or acquiring wealth through buying and selling goods.”
-By Lewis H. Honey
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The main aim of every company is to earn a profit. Doing any activity related to charity or social service will not be considered as a profit motive, if any organisation will do these services, then these will be covered under social objectives which are very different from earning profit.
2.Regularity in transactions:
One-time transaction does not mean business, regular occurrence of transactions is very important for it.
Example (1): If I sold old jewellery to buy new jewellery once, in this case, I am not doing business but if I will do this thing on regular basis to earn money then it will be a business. So regularity is a must for business.
3. Sale or exchange:
The production of goods for own use is not a business. So the production of goods for selling is considered a business. For example manufacturing of toys for their own kids is not business but for sale, if toys are manufactured will be considered as business.
Let’s take one another example: buying a diamond ring for a spouse is not a business but buying diamond rings for resale is business. So there must be a sale or exchange of goods or services.
Uncertainty related to any mishappening is called a risk. Every enterprise faces up and downs so it does not mean that every time a business will get profits all the time. In the future market conditions may change which includes customer preferences, a market trend related to any product, all these may lead to any loss.
5. Quality Product:
Organizations must be a focus on the quality of the product so that customers will retain for a long period of time. Offering quality gives the best results in the form of goodwill, high sale turnover.
The quality standards should be maintained by the business for achieving success. For example Mc Donald, Dominos. These are mainly focused on good quality products with a unique set of standards, that’s why these are famous in the world.
6. Consumer satisfaction:
Consumers are satisfied only when they get the best quality and actual value for their purchase. One of the main purposes of the organisation is to create and make customer delight from the operations.
Adequate funds are necessary to run any business whether it is small or large. For example, if we want to sell something, firstly we have to buy that thing by spending money nobody will give us free of cost.
Every business has some other responsibilities which are different from actual business operations these are some welfare activities which are performed by the business without any monetary benefit/profit like environment protection by using eco-friendly techniques, employment generation, free education facilities to the lower class society, etc.
Objectives of business:
Objectives are the goals to guide the efforts. These are the main steps to follow the pathway for achieving the vision of the business and are divided into three major categories:
Economic objectives tell us about business survival, its growth, and profitability index.Business have to make themselves financially sound so that any kind of risk can be taken in the near future.
Society provides many things like raw material, human resources, natural resources for smooth running for the business, then this the responsibility of the business to take care of society and fulfill the requirements of society.
So business has to play an important role related to social objectives. For example, the generation of employment, provide quality products at fair prices.
Individual or human objectives are related to all workmen working in the organization/business. So for taking care of all employees some objectives have to fulfil be the business
For example good working conditions, good salary packages, growth, rewards and recognition, housing facility, medical facility, education, training, etc.
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