What is Business?
Business is the outcome of the combined efforts of one or more than one individuals to fulfil a social need i.e. producing and selling goods/services in order to earn profit.
Forms of Business
- Sole proprietorship
- Partnership
- Cooperative
- A company limited by shares
- A company limited by guarantee with a share capital
- Less common types of companies are
Features of Business Or Nature of Business Or Characteristics of Business
- Economic Activity
- Production or Trading of Goods or Services for Sale
- Sale or Exchange of Goods and Services
- Regularity in Dealings
- Profit Earning
- Risk Factor
- Uncertainty of Returns
- Legal Activity
- Creative and Dynamic
- Government control
Objectives of Business Or Importance of Business
It is generally believed that a business has a single objective. That is, to make a profit. But it cannot be the only objective of the business. While pursuing the objective of earning a profit, business units do keep the interest of their owners in view. However, any business unit cannot ignore the interests of its employees, customers, the community, as well the interests of society as a whole. Thus, the objectives of business may be classified as:
- Economic Objectives
- Social Objectives
- Human Objectives
- National Objectives
- Global Objectives
Quality or Components or Characteristics of a successful business
The best of the best are committed to doing the “work” of business. They don’t avoid the stuff they don’t like the tough stuff that defines a leader’s determination to win. Just like profitability, success is an outcome. Leaders and companies that master the disciplines of success stand out from their competition. The following are the quality or components or characteristics of a successful business:
- Leadership
- Business Culture
- Financial Literacy
- Structure and Systems
- Skill development
- Everyone sells
- Work environment
- Compensation
- Brand Identity
- Community Service
Different Environments of Business
Dimensions of business environment mean all the factors, forces and institutions which have direct or indirect influence over business transactions. General Environment is the most important dimension of the business environment as a businessman cannot influence or change the components of the general environment rather he has to change his plans and policies according to the changes taking place in the general environment.
- Economical Environment
- Social Environment
- Political Environment
- Legal Environment
- Technological Environment
