Busy with any legal financial activities in order to
make profit are known is business. We can simplify that business nothing but
gaining benefit from the exchange goods and services between two or more
parties with adding economic value their goods and services.
Business refers to those financial activities which
from enterprises gain margin with creating good relationship between them as
well as approved by the view of law.
Financial activities are being done with a view to
making profits legally is called business. Business is free from burden of time
where a job has sets of rule and time duration.
So we can conclude though following features…..
·
Here need at least two parties
·
Creation goods and services
·
Adding economic value of that
·
Occurring within law
·
Objective to make profit
Features
of business:
Business
has sets of features which it differs from other profession. These are narrated
following…..
Entrepreneur:
Entrepreneur is an entity who tries to do something for getting economical
benefits. First step of business is started here. In this stage one can arrange
objectives and gather knowledge which needs to start business. Example subject
of business matter, deigned project paper, capital structure etc.
Expectation
of profit: Without profit activities do not consider as a
business. Business must have expectation of profit. Profit encourage the
entrepreneur to do continuous his activities.
Buying
and selling activities: For the exchange of goods and
services, business needs to buy and sell. It is the process of hand over of
ownership of goods and services between parties.
Risk
and uncertainty:
Business must have risk and uncertainty because future is always
uncertain. Businessman takes risk for the benefits.
Legal
Validity: Unlawful or harmful business do not considered as a
business. Business must have legal validity in the society and country.
There
are so many feature of business. These are proper use of resources, freedom of
actions, public welfare, self employed etc.
Functions
of business:
Business
functions are started to production of goods and services and ended to consumes
and satisfaction of customers. Among the functions of business, some are major
and some are auxiliary. More we can divide functions into two types on the
basis of necessity.
01. Major functions:
Major functions are production, purchase, sell, storing, accounting,
financing, planning, advertising, market analysis, transporting, insurance.
These functions help to run business smoothly and removing different obstruct
in moving ahead. These functions are narrated bellow-
Production: Production is the process of transformation
of the form of recourses. Raw materials are turned into goods which are useable
for human being. It is process of creation of products.
Purchase:
Purchase is a major function of business. Enterprise purchases row materials
from the suppliers. Businessman also purchases necessary machineries and
equipments.
Sell: Sales is the
process of owner’s transformation from one party to another. It creates revenue
for the enterprise.
Storing:
More production reduces the production cost. So a firm tries to minimize cost.
Then more products are required to store for future sales. Store removes the
obstruction of time.
Accounting:
Accounting is the information system where all kinds of transactions are
recorded for farther used in future. Every entity wants to know the profit his
business after a certain period.
Financing:
Financing is the activities of collection of capital and supply the capital in
right time in right place. It compares with the blood circulation of business.
02. Auxiliary functions:
These functions are forecasting, office, manpower, management,
diversification of goods and services, customer satisfaction etc.
Forecasting:
It is the qualification of entrepreneur. It helps to gain more profit and to
avoid loss. It is the estimation of future demand of goods as well as cost of
production.
Management:
Management is most important to run business smoothly. It ensures the continuous
profit and built good relationship with suppliers and customers.
Diversification:
Diversification helps to survive the business in long time. Product
diversification is most important function which creates potential market and
potential customers.
Manpower:
Without manpower we cannot continue the production process. Manpower needs to
run business with any obstruct. So select right manpower is important function.
Importance
of business:
Economy
stands on the activities of business in the world. There are no countries which
enrich its economy without business. No one can move through business
activities. Suppose that we start our morning reading newspaper where newspaper
is bought from an entity.
We can describe the importance from two
angles. One is economical importance another is social importance.
Economical
importance:
Economical
importance represents in bulletin point below….
Ø Increase
of individual income
Ø Increase
of national income
Ø Proper
use of wealth
Ø Infrastructure
development
Ø Technological
development
Ø Expansion
of banks and insurance
Ø Export
increase
Ø Govt.
revenue increase
Ø Capital
formation
Social
importance
Social importance narrates in briefly…..
Proper
distribution of national resources
Creation
of employment
Increasing
living standard
Relation
development
Social
development
Urbanization
