1) Entrepreneur:
Wednesday, 12 October 2011
CHARACTERISTICS OF BUSINESS:
The Essential Characteristics or Features Of Business Are As Under:
1) Entrepreneur:
An entrepreneur is a person who combines the factors of production to produce goods and services for profit. The presence of an entrepreneur is essential in any business which may be operated on a small or on a large scale.
1) Entrepreneur:
2) Deals in Goods And Services
Deals in Goods And Services:
Every business enterprise whether it is carried on a small or a large scale deals in goods and services. The goods may be consumer goods such as bread, butter, cloth, shoes, pens etc, or capital goods like plant, machinery, building, etc, or it may take the shape of services like transportation , electricity, banking, insurance, advertising etc.
3) Involves Production or Exchange of Goods
Involves Production or Exchange of Goods:
An important characteristic of business is that it involves production or sale of goods and services for earning of money. Any activity undertaken for personal consumption or for free distribution fall outside the scope of business. Business includes only economic activities.
4) Series of Deals
Series of Deals:
Business consists of producing or purchasing and selling of goods on continous and regular basis. One or two stray or isolated transactions are not treated as business. A student, for instance, sells his old books in the market is not doing business. However, if he purchase old books and sells them is spare time on regular basis to earn profit, it will then be treated as business.
5) Desire to Earn Profi
Desire to Earn Profit:
The primary aim of business is to earn profit. if an enterprise is to survive, grow and expand, it must yield profit. Profit making thus is an essential element of business.
6) Creation of Utilities
Creation of Utilities: An important characteristic of business is the creation of utilities is goods so that consumers may use them.
For instance, when goods are transported from the places of production to the places of consumers who ultimately use them, then place utility is created. When raw material is converted into finished goods, it creats form utility. When it is stored and brought into the market when needed, then time utility is created.
IMPORTANT OF BUSINESS IN THE PRESENT DAY WORLD
IMPORTANT OF BUSINESS IN THE PRESENT DAY WORLD:
Importance of Business: In earnly time, the goods were produced for one's own self or for the use of family members at the most. As time passed on, the business was conducted by means of barter system in which goods of one kind were exchanged for other goods of equal value. When coins cam into use, business expanded both in rural and urban areas. With the increase of transport facilities, the important and export of goods developed between the nation. The industrial Revolution of the 18th century increased the scale of production, division of labour, specialization and standardizaion of goods. Over the years, the size of business has expanded. The ise of machines has increased. The working business is being computerized ar a very fast speed now. The important of business can be judged from the various activities connected with it.
IMPORTANT OF BUSINESS
Mass Production of Goods:
1) The business of today is making the best possible use of the scarce resources for production goods on a larger scale. The us of automatic machines, new materials, new processing methods etc have not only lowered the cost of production of goods but has helped the producers in producing goods in desired quality and quantity.
Expansion of Market:
2) In the modern world, goods are produced by business according to the needs and expectations of the customers. The customers want goods and services of requisite quality, atreasonable price in at right time. The business of today tries to satisfy the costumers both within and outside the country by developing and designing the products according to the tastes and purchasing power of the costumers. Markets, therefore, have expanded consumption of goods due to increase in number of customers all over the world.
Importance of Business: In earnly time, the goods were produced for one's own self or for the use of family members at the most. As time passed on, the business was conducted by means of barter system in which goods of one kind were exchanged for other goods of equal value. When coins cam into use, business expanded both in rural and urban areas. With the increase of transport facilities, the important and export of goods developed between the nation. The industrial Revolution of the 18th century increased the scale of production, division of labour, specialization and standardizaion of goods. Over the years, the size of business has expanded. The ise of machines has increased. The working business is being computerized ar a very fast speed now. The important of business can be judged from the various activities connected with it.
IMPORTANT OF BUSINESS
Mass Production of Goods:
1) The business of today is making the best possible use of the scarce resources for production goods on a larger scale. The us of automatic machines, new materials, new processing methods etc have not only lowered the cost of production of goods but has helped the producers in producing goods in desired quality and quantity.
Expansion of Market:
2) In the modern world, goods are produced by business according to the needs and expectations of the customers. The customers want goods and services of requisite quality, atreasonable price in at right time. The business of today tries to satisfy the costumers both within and outside the country by developing and designing the products according to the tastes and purchasing power of the costumers. Markets, therefore, have expanded consumption of goods due to increase in number of customers all over the world.
Subscribe to:
Posts (Atom)
