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    Introduction To Business: Chapter # 1

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    aifar
    This document provides an introduction to business concepts. It defines business as human activities directed toward providing or acquiring wealth through buying and selling goods. Business includes trading, manufacturing, and services. It also outlines the components and scope of business, describing industry as the production of goods and services and commerce as the transfer of goods from production to consumers. Common business problems and qualities of a good businessman are also listed.

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    Introduction To Business: Chapter # 1

    Uploaded by

    aifar
    81 views17 pages
    This document provides an introduction to business concepts. It defines business as human activities directed toward providing or acquiring wealth through buying and selling goods. Business includes trading, manufacturing, and services. It also outlines the components and scope of business, describing industry as the production of goods and services and commerce as the transfer of goods from production to consumers. Common business problems and qualities of a good businessman are also listed.

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    ITB_CH01

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    This document provides an introduction to business concepts. It defines business as human activities directed toward providing or acquiring wealth through buying and selling goods. Business includes trading, manufacturing, and services. It also outlines the components and scope of business, describing industry as the production of goods and services and commerce as the transfer of goods from production to consumers. Common business problems and qualities of a good businessman are also listed.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    81 views17 pages

    Introduction To Business: Chapter # 1

    Uploaded by

    aifar
    This document provides an introduction to business concepts. It defines business as human activities directed toward providing or acquiring wealth through buying and selling goods. Business includes trading, manufacturing, and services. It also outlines the components and scope of business, describing industry as the production of goods and services and commerce as the transfer of goods from production to consumers. Common business problems and qualities of a good businessman are also listed.

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    Download as pptx, pdf, or txt
    of 17

    Chapter # 1

    Introduction to Business
    CONCEPT OF BUSINESS

    The word “business” means the state of being


    busy. Generally, the term business includes all
    human activities concerned with earning money.
    In other words, business is an activity in which
    various persons regularly produce or exchange
    goods and services for mutual gain or profit. The
    goods and services produced or purchased for
    personal use are not included in “business”.
    DEFINITION
    1. According to L. H. Haney
    “Business may be defined as human activities directed
    toward providing or acquiring wealth through buying
    and selling of goods.”
    2. James Stephenson says that:
    “Every human activity which is engaged in for the sake
    of earning profit may be called business.”

    3. In the words of B. W. Wheeler


    “An institution organized and operated to provide
    goods and services to the society, under the incentive
    of private gain” is business.
    NATURE OF BUSINESS
    The following points state the nature of business in brief:
    1. Trading:
    Buying or selling securities or commodities.

    2. Manufacturing:
    A business engaged in manufacturing some product.
    3. Services:
    performance of duties or provision of space and equipment
    helpful to others
    Nature of Business

    Trading Manufacturing Services

    S P C S P C
    S P C

    Where;

    S= Sole Proprietorship
    P= Partnership
    C= Corporation
    Components and Scope of business
    COMPONENTS OF BUSINESS
    Business bears the following components:
    a) Industry
    b) Commerce
    INDUSTRY

    Industry is connected with the production and


    preparation of goods and services. It is a place
    where raw material is converted into finished
    or semi-finished goods, which have the ability
    to satisfy human needs or can be used in
    another industry as a base material. In other
    words, industry means that part of business
    activity, which is concerned with the
    extraction, production and fabrication of
    products.
    KINDS OF INDSTRY
    1. Primary Industry
    2. Secondary Industry
    PRIMARY INDUSTRY

    Primary industry is engaged in the production or


    extraction of raw materials, which are used in the
    secondary industry. Primary industry can be divided into
    two parts:
    a) Extractive Industry
    b) Genetic Industry

    (a) Extractive Industry


    Extractive industries are those industries, which extract,
    raise or produce raw material from below or above or
    above the surface of the earth. For example, fishery,
    extraction of oil, gas and coal etc.
    (b) Genetic Industry
    Genetic industries are those, which are engaged
    in reproducing and multiplying certain species
    of animals and plants. For example, poultry
    farm, fishing farm, diary farm, plant nurseries
    etc.
    2. SECONDARY INDUSTRY

    These industries use raw materials and make


    useful goods. Raw material of these industries is
    obtained from primary industry. Secondary
    industry can be divided into three parts:
    a) Constructive Industry
    b) Manufacturing Industry
    c) Services Industry
    (a) Constructive Industry
    All kinds of constructions are included in this industry. For
    example, buildings, canals, roads, bridges etc.

    (b) Manufacturing Industry

    In this industry, material is converted into some finished


    goods or semi-finished goods. For example, textile mills,
    sugar mills etc.

    (c) Services Industry

    These industries include those industries, which are


    engaged in providing services of professionals such as
    lawyers, doctors, teacher etc.
    COMMERCE

    Commerce is the second component of business. The


    term “commerce” includes all activities, functions
    and institutions, which are involved in transferring
    goods, produced in various industries, from their
    place of production to ultimate consumers.
    In the words of Evelyn Thomas:
    “Commercial occupations deal with the buying and
    selling of goods, the exchange of commodities and
    distribution of the finished goods.”
    In simple words, “trade and aids to trade” is called
    commerce.
    SCOPE OF BUSINESS
    The scope of business can be explained as:
    1. Trade
    2. Banking
    3. Transportation
    4. Insurance
    5. Warehousing
    6. Production
    7. Banking/Finance
    8. Marketing
    Common Business Problem
    1. Organizational Problems
    i. Types of ownership
    ii. Types of channels to be used
    iii. Internal organization
    2. Nature of Business
    3. Finance or raising Capital
    4. Location & Layout
    5. Hiring (staffing)
    6. Types of goods & services
    7. Marketing
    8. Competition
    9. Risk/Insurance
    10. Government Laws
    QUALITIES OF A GOOD BUSINESSMAN
    Following are the basic personal skills or qualities which a
    good businessman must possess:

    1. Ability to Plan
    2. Competent
    3. Goal Oriented
    4. Cooperative
    5. Risk Taker
    6. Decision Maker
    7. Organized
    8. Evaluator
    9. Honest
    10. Hardworking
    11.Initiator
    12.Knowledge able
    13.Leadership Quality
    14. Negotiator

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