Sunday 29 January 2012

Nature And Scope of A business.

Introduction Of A Business

The word business technically means a state of being busy, every person is engaged in some kind of occupation a farmer works in the field and worker works in the factory, and the clerk does his office work in an office a teacher teaches in the classes, and salesman busy in selling goods to people. An entrepreneur is busy running his factory or business, the primary aim of all these people is to earn their livelihood while doing some work or implementing ideas.


All creative human activities relating to the production of goods either services for satisfying human needs are known as business, it is also a gainful procedure through which individuals and groups exchange goods and services for the sake of earnings.


FEATURES OF BUSINESS:



Entrepreneur

There must be someone out to take the initiative for establishing a good business with nice ideas. A person who recognized the need for every product or service will be known as an entrepreneur.

Goods & Services Dealing:

Every business low either small always deals in goods and services. Goods include both customer's goods like clothes, shoes, toothpaste, and industrial goods like, raw material, tools, and machinery, etc.


Risk Management:

Every business involves a greater element of risk and uncertainty. In fact, a businessman tries to foresee future uncertainties and plan his business activities accordingly.

Profit:

Profit is the most important feature of a business. Business is started for the purpose of earning profit and profit is the driving force of every business activity. An incentive of earning profits keeps a person in business, also necessary for the continuity of the business. This does not mean that there will be no chances of losses in business.



Production:

Businesses always deal with the production of goods and services. The main object of business is to provide goods and services to the society for the purpose of earning profit. The goods must be produced or manufactured. So that these can be sold in the market.


Sales:

Sales are related to the transfer of values. Production for personal use does not come under the scope of business for example if a shoemaker makes a pair of shoes and wears himself this act is not treated as a business. Simply, if a person makes a pair of shoes for the purpose of selling, now his act will be treated as a businessman.

Finance:

Finance is a very important feature of the business. No businessman can start a business without finance, in simple words that finance is a lifeblood of every business.

Management:

Every and each enterprise needs an organization for its successful working. Different business activities are divided into departments, sections, and jobs and organization creates the framework for managerial performance and helps in coordinating various business activities.

Regularity:

In every big or small business, only those transactions are included which have regularity and continuity and the isolated transactions will not be called business, even if the person earns profit from that deal. A person builds a house for himself, but later on sell it on profit.


Utility:

Goods are provided to the consumer as per there liking and requirements. Business creates different types of utilities in goods so that the consumer may use them and make a profit.


Consumer Satisfaction Need:

The ultimate aim of the business is to supply goods to consumers. The goods are produced for the consumers. If a consumer is satisfied, he will purchase the same thing again, Otherwise, he will go for an alternative product. We don't have to lose the consumer satisfaction.

Planing:

Planning is the most important character of business and planning is related to all the activities of the business and planning is always based on past experience and skills.


Business Objectives:

Profit is not the only objective of business, every work is started with an objective. The objective is a goal and the achievement of which is a necessity and all efforts are concentrated for the fulfillment of the objective.

Profit Earning:

We can not deny that business is started for earning profits. Profit is a basic incentive to business pursuits. Profits are needed to face various uncertainties like the trade cycle, change in demand pattern, fluctuations in money markets. Good business needs profits not only for its existence but also for expansion. Investors want an adequate return on their investments, the worker wants higher wages and the entrepreneur needs money for reinvesting. The non-profit business will cause unemployment and get to poverty.


Goods Production:

Profit can be earned only VIA exchange of goods and services takes place, So, the next objective is to produce more goods and sell them to the consumer and get good satisfaction.

Markets Creation For A Business:

The main aim of the businessman is to sell products and marketing consist of these efforts which effects transfer in ownership regards to goods and care for their physical distribution.

Technology Improvement:

A businessman should always strive to use the latest methods of production. In this new ERA of competition, everybody tries to sell his products by offering goods quality products at lower prices. We must provide more good quality than others with lower prices to have lots of earnings.

Humanity Objectives:

The human objective of business requires that a workable balance should be maintained among the claims of various interested groups like employees, shareholders, and consumers. These objects can change the business sideline and offers a good initiative.




For more ideas and relative information visit i2bnotes.blogspot.com to get news and updates regarding the business ideas.




15 comments:

  1. but written above are not scope..?

    ReplyDelete
    Replies
    1. It is the short summary of a scope...Thanks....

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  5. what was that :o admin are you sure this is scope of business? i mean to say this is quite tuff

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  6. Why not explain the concept and Nature of any type of business not in general viewpoint

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    1. I will share the concept accordingly, keep in touch.

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