BUSINESS DEFINITION,CONCEPT AND NATURE

CONCEPT OF BUSINESS

The literal meaning of term “Business” is a state of being busy. It is a wider term and may be explained as an activity in which different persons exchange something of value, whether goods or services, for mutual gain or profit. It is an organized or systematic activity involving the satisfaction of human wants. Business involves regular or recurring purchase and sale of goods and services with the purpose of earning profits through the satisfaction of human needs. Repeated dealings rather than a single isolated transaction constitute business. Business may be distinguished from other activities by

the fact that goods and services created or purchased are meant for sale and not for personal consumption.

DEFINITIONS:

Various experts have defined business in different ways. Some of the popular definitions of business are given below:

(i) "Business is an enterprise engaged in the production and distribution ' of goods for sale in market or rendering services for a price ".

        (RJV. Ownes)                                                                                                                 

(ii) "Business may be defined as human activity directed towards producing or acquiring wealth through buying and selling goods ".,

    (LH. Haney)                                                                                                                     

(iii) “Business is an institution organized and operated to provide goods and services to society under the incentive of private gain ”.

       (B. 0. Wheeler)    

                                                                           

NATURE OF BUSINESS 

The meaning and nature of business can also be explained with the help of following points:

(i) Business is a Human Activity:

           Business is purely a human activity. It is the human being who starts business, earns profit and manages different factors related to the business.

(ii) Business is a System:

                Business is a systematic and sound arrangement of various factors, which leads to the fulfillment of particular objective according to a well established strategy. A business enterprise is a combination of, various sub-systems.

 (iii) Business is a Social Process:

         Business is a process, which is run by the owners with the help of employees, professionals and customers. These people are the part of

society whose welfare is the responsibility of business. Thus, the business is a social process.

(iv) Business is an Economic Activity:

                 Business is an economic activity as it is concerned with the creation, attainment and consumption Of wealth.