nature and purpose of b/s

b/s refers to an occupation in which people regularly engage in activities related to purchase, sale or production of goods and services with a view of earning profits
classification of activities
1. economic
  1. these are done to earn livelihood
  2. categories
    1. business
      1. refers to those activities which are connected with the sale of goods and services with a motive of earning profit
    2. profession
      1. includes those activities that require special skill and knowledge
    3. employment
      1. employment refers to the occupation in which people work for others and get renumerated in return
2. non-economic
  1. these are done out of sympathy and love
characteristics of b/s
1. an economic activity
2. production of goods and services
3. sale of goods and services
4. dealing in sale of goods and services on a regular basis
5. profit earning
6. risk bearnig
7. uncertainity of returns
classification of b/s acts
1. industry
  1. PRimary
    1. extractive
    2. genetic
  2. secondary
    1. manufacturing
      1. processing
      2. assembling
      3. analytical
      4. synthetical
    2. construction
  3. tertiary
2. commerce
  1. trade
    1. internal
      1. retail
      2. wholesale
    2. external
      1. import
      2. export
      3. entreport
  2. aux of trade
    1. advertising
    2. finance
    3. transport
    4. warehousing
    5. insurance
objectives of b/s
1. market standing
2. innovation
  1. inovation in product
  2. innovation in various skills and activities
3. productivity
4. physical and financial resources
5. earning profits
6. manager performance and development
7. worker performance and attitude
8. social responsibility
business risks
1. types
  1. speculative
    1. involve both possibily of gain and loss
  2. pure
    1. possibility of loss or no loss
2. nature
  1. b/s risk arise due to uncertainties
  2. risk is essential
  3. risk depends mainly upon nature and size of b/s
  4. profit s the reward for risk bearing
3. cauases
  1. natural
  2. human
  3. economic
  4. other
starting a b/s
1. selection of line of b/s
2. size of firm
3. choice of form of ownership
4. location
5. financing
6. physical facilities
7. plant layout
8. competent workforce
9. tax planning
10. launching

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nature and purpose of b/s

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	Created by animesh.agarwal almost 11 years ago