nature and purpose of business

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Chapter-1 of business studies this can give a basic idea about Business studies sub

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Birla Shiksha Kendra Welcomes you to XI commerce class : 

Birla Shiksha Kendra Welcomes you to XI commerce class Birla Shiksha Kendra

PowerPoint Presentation: 

NATURE AND PURPOSE OF BUSINESS

PowerPoint Presentation: 

What is business ? How we identify it is a business? Do we need a permanent place to start the business ? What is the ultimate aim behind business? Find some business organization around your Locality? Birla Shiksha Kendra

Business?: 

Business? Business is an Economic activity which involves regular production and or exchange of goods and services with the main purpose of earning profits through the satisfaction of human wants. Birla Shiksha Kendra

Familiar the meaning OF Business?: 

Familiar the meaning OF Business? 1.business involves production and exchange of goods. 2.It’s main aim is to earn profit. 3.It must satisfy human wants. “ These activities are organised and performed under the framework of an institution known as business organisation /firm/enterprise.” Birla Shiksha Kendra

PowerPoint Presentation: 

“ According to B.O Wheeler, Business is an institution organised and operated to provide goods and services to society under the incentive of private gain.” Birla Shiksha Kendra

TYPES OF ECONOMIC ACTIVITY: 

TYPES OF ECONOMIC ACTIVITY ECONOMIC ACTIVITIES BUSINESS PROFESSION EMPLOYMENT TRADE INDUSTRY BANKING TRANSPORTATION INSURANCE WAREHOUSING ADVERTISING ETC . MEDICAL LEGAL CHARTERED ACCOUNTANT . MANAGER FOREMAN CLERK SALESPERSON WORKER,ETC.. . Birla Shiksha Kendra

Definition of Business: 

Definition of Business Business refers to all those activities which are concerned with the production and /or purchase and sale of goods or services with the purpose of selling them at a profit. Birla Shiksha Kendra

Characteristics of business: 

Characteristics of business Economic Activity Production or procurement (acquisition of goods for the purpose of sale) Dealing in goods and services;( goods are consumer goods and capital goods) Satisfaction of consumer wants Regular dealings (continuous supply of goods and services) Profit motive Uncertainty. Risk element Creation of utility Birla Shiksha Kendra

Objectives Of Business: 

Objectives Of Business Business objectives as the purpose or the reason for the existence of the business in the society. Birla Shiksha Kendra

Business activities: 

Business activities Business activities broadly divided in to three; They are, a) Economic objectives, b) social objectives c)Human objectives Birla Shiksha Kendra

PowerPoint Presentation: 

TYPES OF BUSINESS ACTIVITY ECONOMIC OBJECTIVES HUMAN OBJECTIVES SOCIAL OBJECTIVES 1)EARNING OF PROFIT 2)CREATION OF CUSTOMERS 3)INNOVATION 4)EFFECTIVE UTILISATION OF RESOURCE 1)GOOD SERVICE AND FAIR DEALINGS 2)TREATING EMPLOYEES AS PARTNERS 3) DEVELOPMENT OF EMPLOYEES SKILLS 4) JOB SATISFACTION OF EMPLOYEES 1)BETTER QUALITY PRODUCTS 2)FAIR TRADE PRACTICES 3)GENERATION OF EMPLOYMENT EMPLOYEES WELFARE 4)COMMUNITY SERVICE 5)PROTECTION OF EMPLOYMENT Birla Shiksha Kendra

NECESSITY OF PROFITABILITY OBJECTIVE : 

NECESSITY OF PROFITABILITY OBJECTIVE ACCORDING TO PETER. F. DRUCKER “ A BUSINESS MUST ACHIEVE SUFFICIENT PROFITS TO COVER THE RISKS OF ECONOMIC ACTIVITY AND THUS TO AVOID LOSS” Birla Shiksha Kendra

Can profit be the sole objective of a Business: 

Can profit be the sole objective of a Business A lay man may say that business is carried on for profit only. But a good business man cannot afford to keep profits as his sole objective. “earning of profits cannot be the objective of a business any more than eating is the objective of living”

Classification of business activities: 

Classification of business activities Business activities are classified on the basis of 3 criteria,ie, 1 size 2 ownership 3 functions

Classification of business activities: 

Classification of business activities On the basis of size business activities are classified as 1 small scale 2 large scale Small scale the investment does not exceed Rs 100 lakhs. Large scale means the investment exceed 1 Crore

Classification of business activities: 

Classification of business activities On the basis of OWNERSHIP business activities are classified as Public sector –under the govt. control pvt sector-under private control Joint sector –both govt. and private

Classification of business activities: 

Classification of business activities Public enterprises may be organized as Departmental undertaking Government company Statutory corporation etc… But pvt.enterprises are like; Sole trader, Joint Hindu family Partnership Joint stock company And co-operative society.

Classification of business activities: 

Classification of business activities On the basis of functions business activities are classified in to two; Industry and commerce Commercial activities are again classified as ; trade and aids to trade

PowerPoint Presentation: 

BUSINESS ACTIVITIES INDUSTRY COMMERCE Trade 1 EXTRACTIVE 2 GENETIC 3 MANUFACTURING 4 CONSTRUCTION Aids to Trade Home trade; 1)Retail trade 2) wholesale trade Foreign trade 1 import 2 export 3 Entrepot Transport Warehousing Insurance Banking advertising

A brief review of the various types of Business activities: 

A brief review of the various types of Business activities 1 Industrial activities or Enterprise; It includes mining ,breeding,costruction of roads building,etc....(manufacturing,mining,constructions ) . 2 Commercial activities; commercial activities involve exchange of goods and services like...transport, ware housing,banking,insurance and advertisement. . 3 Trading activities or firms; it refers to purchase and sale of goods to earn profits by the business men known as traders. They engaged in a) Home trade - includes wholesale and retail b) foreign trade- import-export and entreport

Types of industries: 

Types of industries Primary industry; it includes extraction ,producing and processing of natural resource (extractive+ Genetic) Secondary industry are concerned with processing materials which have already been produced at the primary stage. Manufacturing and construction industry is under secondary industry.

Manufacturing industry may assume the following forms: 

Manufacturing industry may assume the following forms Processing industry; raw materials are processed through a series of manufacturing operations making use of analytical and synthetic method)-textile sugar and steel. Assembly line industry; in assembly industry, the finished products can be produced only after various components have been made and then brought together for final assembly. automobile watches,telivision are examples

Definition of trade : 

Definition of trade Trade is that branch of commerce which deals with exchange of goods and services in terms of money between different persons known as ‘traders’

External or foreign trade: 

External or foreign trade Import trade Export trade & Entrepot trade

AUXILIARIES TO TRADE: 

AUXILIARIES TO TRADE Transportation and communication Banking Insurance ware housing Advertising And packaging