Notesale: Turn your study into money

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Introduction to Business, Nature of
Business, Objectives of Business
Humans are busy in doing some activities or the other
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The first
type of activities are called Economic Activities, while the second type of
activities are called Non-Economic Activities
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Meaning of Business:-

Business is the sum total of all the activities
which starts right from the production of goods and services down to the
task of taking them to the consumers
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For example, they
include transport and communication, insurance, storage, banking , etc
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H
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Nature of Business: An Economic Activity
 Exchange of goods and services
 Regularity in dealing
 Profit Motive
 Element of risk

 Creation of Utility
 Consumer Satisfaction
 Create Employment Opportunities
1
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It is essential
to see that any activity performed by an individual should be
economic in nature in order to be called business, for example, the
purchase – sale of goods by a shopkeeper
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Exchange of goods and services:- In business, if we purchase any
material for our personal use them it will not be called business, the
material should only be purchased for sale
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3
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For
example, if a person purchase a bicycle and sold it but for next few
months he does not perform any transaction then it is not called
business
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4
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If your purpose is to earn profit only then it will be
called business
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Element of risk:- It is not easy to do a business, there will always be
many difficulties in front of you
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But if you want to do
business you must have the guts to bear risks
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Creation of utility:- In order to make things more useful to society
their utility is enhanced by the efforts of businessman
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Utility of place is created by carrying goods from the place
of production to the place of consumption, utility of form is created
by changing their size or form,utility of time is created by storing
them in godowns etc
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Consumer Satisfaction:- Consumer satisfaction is important in
business as well as earning profit
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8
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Because when a business is opened it will
need people to perform many activities essential in a business
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Objectives of Business:-

Economic Objectives:- This is an objective of business without which
business cannot be thought of
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Business has following economic objectives:1
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No body sets a business to gain
loss, everybody wants to earn profit
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2
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If we have more and
more customers , the larger we can earn profit
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If we succeed in satisfying our
consumers then our business will be able to get established in
market for a long time
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Innovation:- Today a business can be established for a long
time only if it adopts innovation
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For example, to produce new products,
adopting new technologies in a business, to do market research,
to provide more facilities to customers
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Social Objectives :- Business is established in society and it is an
important part of society
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It has
following social objectives:1
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No business should be induldge in

profiteering kind of activities
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Hence, your products should be of good
quality as well as with good prices
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Contribution to Community Development:- Business should
contribute some good things to society like establishing
schools, colleges, hospitals, etc
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3
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It is your duty to
return their profit as only you are not the owner of your
business they are too
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Providing employment:- Now-a-days, the employment is the
biggest problem of society
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Business should provide
employment opportunities to its people

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