Nowadays the word business is

  • Эссе на тему «Бизнес в современном обществе»
    В нашей стране все больше людей задумываются о собственном бизнесе. Обычно это малый бизнес, ведь на средний или крупный денег у людей нет. Интересует бизнес и меня, и я хотел бы в будущем связать с ним свою жизнь.
    Бизнесом люди интересуются по разным причинам. Одних привлекают высокие доходы. Другие не находят работы, которая бы их устраивала. Третьих привлекает свобода мысли и идей, с которыми всегда связан бизнес.
    В детстве я думал, что бизнесмены – это те, кто покупает товар за границей дешево, а потом продает дорого в ларьке или на рынке. Вот и вся суть бизнеса. Таким «торгашом» мне быть, честно говоря, не хотелось.
    Позже я понял, что возможности современного бизнеса намного шире. Производство какого-нибудь товара – это теперь тоже бизнес. Даже выплавка стали на заводе – тоже он, только крупный. Серьезный бизнес, наоборот, укрепляет экономику страны, а не «убивает» ее заграничным ширпотребом. Бизнесмен платит больше налогов, чем обычный гражданин, и создает новые рабочие места для людей. Конечно, так происходит только в том случае, если это социально ответственный бизнес. То есть тут соблюдают права работников, а не просто используют их труд.
    Организовать социально полезный бизнес могут и небогатые люди, важно только иметь какой-то стартовый капитал. Таким бизнесом могут стать мастерские, где изготавливают детали для машин и заводских станков. Или ателье, где шьют оригинальную одежду и обувь. Это могут быть и Интернет-сайты. Сегодня даже ферма и поля, засеянные, например, подсолнечником – это уже собственное дело. Из маленького бизнеса со временем может вырасти большой: из частного медицинского кабинета – прогрессивная современная клиника, из салона мебели – фабрика, а из маленькой выставки собственных картин – художественная галерея.
    Бизнесу мешают высокие налоги, а еще больше ему «ставит палки в колеса» коррупция. Государство должно следить за тем, чтобы бизнес был честным, но часто оно требует себя «умасливать» деньгами. Поэтому у нас в стране малый бизнес развит недостаточно, и простые люди еще боятся с ним связываться.
    Сочинение на тему | Октябрь 2015 источник

  • Предпринимательская деятельность — основа капиталистического строя. Там, где есть бизнес и право на частную собственность, есть процветание экономики и жизни каждого отдельного гражданина. Предпринимательство есть ответственность, а ответственность есть свобода в привычном понимании слова.
    Ответственный человек в меньшей степени зависим от обстоятельств, поскольку понимает, что в конечном итоге его жизнь — в его собственном владении.
    В противовес этому, мы можем наблюдать пример развития нашего народа в последние сто лет. Сколько умов мы потеряли при революции? А сколько теряем сейчас? Когда даже не особо одарённый, но упорный по жизни человек просто уезжает в страны Европы и Запада. Условия жизни, менталитет, средняя заработная плата, качество предоставляемых услуг. Всё это привлекает молодых и амбициозных стартаперов, не желающие мериться с гнетущими условиями пост — советской реальности.
    Можно было бы поставить этот вопрос в особо философском ключе, но в реальности всё проще, чем может показаться.
    МОТИВАЦИЯ ОТ И К.
    Пост — советский человек начисто лишён мотивации к чему—либо хорошему, но имеет огромную мотивацию убежать от плохого. На протяжении всего времени правления коммунистического строя, людей особо не спрашивали, чего они хотят от жизни. Всех привели к общему знаменателю равенства, что невозможно просто биологически. Каждый человек изначально имеет навыки, которыми он лучше или хуже будет владеть в жизни, чем остальные. Человек имеет свои ценности, выработанные в ходе социализации. Это приводит к выходу на свои истинные желания и в конечном счёте, на свою миссию в том мире.
    А там, где есть миссия, там и появляется желание прийти к определённым регалиям. У нас этого не было. Индивидуальность была заглушена на корню, а для особо одарённых существовали особые, опять — таки, лагеря. В конечном счёте, мы потеряли достаточную часть инициативных людей. В оставшейся части населения, чётко прописывались парадигмы «не выделяйся» «будь как все» «деньги — это зло», что привело к полному подавлению проявлений воли. Творческие порывы чётко фильтровались цензурой, а инициатива была строго наказуема даже в рамках семьи.
    Каждый русский человек может вспомнить моменты, когда он хотел сделать что-то своё, а ответ от родителей слышал «а ты уроки сделал?! Вот когда сделаешь, тогда можешь заниматься чем хочешь» А затем шло мытьё посуды, походы в магазин, и на себя банально не оставалось времени.
    Когда исчезает индивидуальность, исчезает и понимание себя в социуме и в мире в целом. О каких проявлениях в бизнесе можно говорить, когда человек не знает, что он хочет? Следовательно, не знаешь, как жить свою жизнь, то за тебя её живёт кто-то другой.
    Люди не находились на своих местах, и выполняли задачи им не свойственные.
    Отсюда идёт извечная проблема мотивации русского человека.
    «Не знаю чего хочу, но знаю чего не хочу.» Не хочу идти в институт, ибо знаю, что мне не нужна данная специальность. И знаю, что не хочу идти в армию. И в итоге, приходится терпеть все тяготы и лишения, когда находишься не на своём месте из-за страха и не понимания, что делать дальше. Почему человек готовиться к диплому не за полгода, а за неделю до сдачи? Почему человек не готовиться к экзаменам за месяц, а за ночь до сдачи? Почему человек не выполняет рабочий план планомерно, а за три дня до конца месяца?
    Потому что ему это не интересно. Это не его деятельность. Это деятельность его родителей, не реализовавшие свои желания в молодости и в попытках реализовать их через своё чадо, отправившие его в институт. Получать «престижное» высшее образование.
    Человек не может с огнём в глазах идти к чужим целям. В данных условиях он может лишь существовать. Но о жизни речи уж точно не идёт. Какая может быть мотивация к чему-то высокому, когда человек ходит в институт, чтобы подарить своим родителям бумажку, цена которой за рамками РФ — грош.
    ОТСУТСТВИЕ ИДЕИ.
    Америка нужна этому миру для качественных услуг и их рекламы.
    Азия нужна этому миру для сохранения старых традиций и знаний, накопленных веками мудрейшими из людей.
    Европа — центр цивилизации. Туда сейчас едут практически все люди со всего света.
    А для чего нужна Россия?
    Иногда складывается такое ощущение, что это испытательный полигон отборочной селекции. Есть низкий уровень жизни, и человек от этого бежит. Вырвался — получаешь всё. Не выбрался — не получаешь ничего. Это забавно, парадоксально, но именно этот уровень жизни ведёт к тому, что у нас очень много талантливых людей. Но они не находят для себя вариантов реализации собственных желаний, и в итоге уезжают в Европу.
    Простой пример.
    В наших условиях жизни выросли одни из лучших программистов в мире. Почему? Потому что все они в детстве играли в игры. Кто «не в теме», объясню.
    Для нашей страны покупка игровой приставки в 90 — х и начале нулевых была непозволительная роскошь. Как и покупка персонального компьютера.
    Но компьютеры уже тогда были необходимым инструментом, игровые приставки — нет.
    В то время игровые разработчики не особо уделяли внимание оптимизации своих проектов. Игры выходили очень «сырыми», не доделанными. В итоге игрокам самим приходилось переписывать исходные коды игры. А играть очень хотелось. И ради получения удовольствия приходилось доделывать игры за разработчиков. То есть быть самому себе программистом.
    Наверное, именно этим можно объяснить рвение русского человека в IT — сфере.
    На выходе, мы получаем потенциальных программистов элитного класса. Ведущих специалистов в своей области. И что дальше? Они не задерживаются в России. А зачем? Когда можно выучить чужой язык и устроиться в забугорную компанию и получать в месяц оклад, равный средней заработной плате в России за полгода, и это минимум.
    Зачем? Ради какой идеи? Сделать государство лучше? У Русских чётко прописано ” здесь всегда будет плохо«. Нет общей идеи для народа. И поэтому смысла делать бизнес здесь нет. Лучше уж поехать сразу на всё готовое. Хотя любому человеку ясно что Россия — страна непаханых полей. Конкуренции практически нет, учитывая качество предоставляемых услуг. Изучаешь рынок, выписываешь надоевшие и устаревшие элементы, убираешь их и делаешь не как все. Ах да. Я забыл. «Не выделяйся».
    БЕЗОТВЕТСТВЕННОСТЬ.
    Причины всех бед. Зачем отвечать за свои доходы? Это роль государства. Зачем следить за своим здоровьем? Это роль медицины. Зачем уделять внимание саморазвитию? Это удел школ. Зачем заниматься своей социализацией? Это роль социальных институтов.
    И так во всём. Человек не несёт ответа за свою жизнь, но при этом радостно помогает голодающим детям в Африке, при средней зарплате около 35 тысяч. Гениально!
    К этому добавляется встроенное с детства чувство вины. Ты должен кому угодно, но не себе. В итоге получаем вечно должных и вечно бедных как в материальном плане, так и в плане качества жизни.
    Итого, пока не понятно, сколько это ещё будет продолжаться. Ясно одно — перспективы русского бизнеса в таких условиях крайне удручающие. Изменить ситуацию может лишь воспитание нового поколения в ценностях свободы, права на частную собственность, и ответственности за свою жизнь. Но сколько должно пройти времени? Десять лет? Двадцать?
    России нужны умы. Именно эти умы смогут сделать нашу страну лучше и возможно выместить застоявшихся гигантов индустрии с рынка. Но пока об этом можно лишь говорить в рамках отдалённого будущего, а не настоящего.

  • на английском языке с переводом на русский язык

    Business

    Бизнес

    Nowadays the word “business” is very popular. It is used everywhere: in communication tied with commercial deals, in mass media, in modern books and films, in scientific and educational context. Sometimes business is equated to trade, but it is a broader phenomenon including all the institutes and relations associated with entrepreneurship – not only goods sale and purchase, but also various services (for example, financial or consulting ones), the banking system, marketing, business etiquette. Business is a main instrument and basis of the market that forms the capitalist economy.
    В наши дни слово «бизнес» очень популярно. Оно используется везде: в коммуникации, связанной с коммерческими сделками, в СМИ, в современных книгах и фильмах, в научном и образовательном контексте. Иногда бизнес отождествляется с торговлей, но это более широкий феномен, включающий все институты и отношения, соотносящиеся с предпринимательством – не только продажу и покупку товаров, но и различные услуги (например, финансовые или консалтинговые), банковскую систему, маркетинг, деловой этикет. Бизнес – главный инструмент и основа рынка, который формирует капиталистическую экономику.
    The most widespread type of this global thing is the small business. Today every full age person may create a venture if he or she has all the necessary documents (primarily, the license) and some initial capital. Certainly, a few businesspersons can constitute a group of co-owners. On the market, a private enterprise should participate in the competitive struggle in order to survive and realize its goals. A businessman develops his company hiring managers and employees, choosing partners, and attracting clients through advertisement, beneficial price policy or social activities (charity, events for children, etc.).
    Самый распространённый тип этого глобального явления – малый бизнес. Сегодня любой совершеннолетний человек может создать предприятие, если у него или у неё есть все необходимые документы (прежде всего, лицензия) и стартовый капитал. Конечно, несколько предпринимателей могут составлять группу совладельцев. На рынке частное предприятие должно участвовать в конкурентной борьбе, чтобы выжить и реализовать свои цели. Бизнесмен развивает компанию, нанимая менеджеров и сотрудников, выбирая партнёров и привлекая клиентов с помощью рекламы, выгодной ценовой политики или социальной деятельности (благотворительности, детских мероприятий и т.д.).
    However, there are other, alternative forms of business: educational business, show business, social entrepreneurship… Almost all the spheres of our life depend on it. Besides, business affects features of modern mentality: the ideal of a strong, independent, initiative person who effectively uses his or her time and opportunities was born in the business environment. For this reason, a great number of young people dream of launching their own venture.
    Однако есть другие, альтернативные формы бизнеса: образовательный бизнес, шоу-бизнес, социальное предпринимательство… Почти все сферы нашей жизни зависят от него. Кроме того, бизнес влияет на особенности современной ментальности: идеал сильного, независимого, инициативного человека, который эффективно использует своё время и свои возможности, родился в бизнес-среде. По этой причине огромное количество молодых людей мечтает открыть собственное предприятие.

  • Сегодня, очень многие ищут способы, чтобы, ели даже, и не стать миллиардером, то, хотя бы, прилично и стабильно зарабатывать. Стремятся к этому, практически, все, вот, только, выходит это , у единиц. Особенно, мечтают об этом, школьники старших классов. Их можно , без труда, понять – мотивация. Кто-то хочет «крутой» мобильник, планшет или ноутбук, а у кого-то, и вовсе, нет денег, чтобы, более-менее, достойно одеваться. К сожалению, настало такое время, что далеко не все родители, могут обеспечить своих детей. И это очень печальный факт.
    Школьники же, понимая, что «другого выхода» у них нет, вместо того, чтобы учиться, пытаются заниматься «бизнесом», в подавляющем большинстве случаев, даже не подозревая о том, что это такое, и что вообще, нужно делать, чтобы стать бизнесменом.
    Естественно, далеко не у всех школьников, богатые родители, и самый «оптимальный вариант», как считают дети – это бизнес с нуля.
    Естественно, как его начинать, они даже, понятия не имеют. Начинают что-то помогать продать, купить и т.д. Выполняют мелкие поручения, одним словом – полная ерунда. В самом лучшем случае, они имеют за это мизерную оплату, которой, даже пополнить мобильник, не хватит. А, в подавляющем большинстве случаев, их просто «посылают в необитаемые края», пригрозив, при этом, уведомить дирекцию школы и полицию, о «факте вымогательства». Понятное дело, что любой ребенок испугается и останется «с носом».
    Но, вопрос, остается вопросом: возможен ли, бизнес для школьников? Судя по практике, как ни странно – да!
    В первую очередь, что должен понимать школьник, что никто не платит деньги просто так. Чтобы иметь деньги, а уж, тем более, начать собственный бизнес, необходимо обладать определенными знаниями.
    На сегодняшний день, очень многие школьники, особенно, старших классов, практикуют такой вид заработка, как написание рефератов, сочинений, контрольных и т.д. Оплата, естественно, тут происходит по договоренности.
    Но, есть и те, кто «шагнул далеко вперед». особенно, это касается тех, кто хорошо знаком с мобильными приложениями и программированием. Есть школьники, которые, на сегодняшний день, благодаря своим знаниям, зарабатывают, в десятки, а то и в сотни раз больше, чем их родители. Они прописывают различные приложения к играм, тестируют и т.д. И, надо сказать, они любят свое дело, и, к счастью, уже определились с местом в жизни. Такими школьниками, уже давно заинтересовались крупные разработчики, и, даже, готовы полностью оплатить их будущее образование в ВУЗах.
    К сожалению, есть и другие «бизнесмены». Нет, зарабатывают они ни чем не меньше, чем те, о ком сказано выше, вот, только, не заработок это… Все, естественно, догадались, что речь идет о школьниках-хакерах.
    Эти малолетние псевдо-гении, без труда взломают страницу в соцсети, интернет-ящик и т.д. Но, это «цветочки». Многие из них, великолепно знают принцип защиты банковской системы, ее изъяны, и, без труда, «хакают» чужие счета, естественно, с воровством средств.
    Любой школьник, должен знать и понимать, что от такого вида «бизнеса», нужно держаться, как можно, дальше, так как, ни к чему хорошему, кроме «забора с колючей проволокой», он не приведет!

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    по дисциплине «Экономика организации»
    на тему:
    «Предпринимательство – важнейший вид экономической деятельности»
    Работу выполнила:
    студентка 2 курса
    гр. Д-21-11
    А.Р. Хабибуллина
    Руководитель:
    преподаватель
    экономических дисциплин
    первой квалификационной категории
    Е.В. Симонова
    2013
    Предпринимательство – важнейший вид экономической деятельности
    Предпринимательство является двигателем любой современной развитой экономики, поскольку именно предприниматели создают большинство рабочих мест, внедряют новшества, стимулируют рост благосостояния среднего класса и закладывают основу гражданского общества и политической свободы.
    Предпринимательство является одной из форм экономической деятельности. Это инициативная самостоятельная деятельность граждан и их объединений, осуществляемая на свой страх и риск и под свою ответственность, направленная на получение прибыли.
    Так кто же такой предприниматель? С юридической точки зрения предприниматель – это физическое лицо, зарегистрированное в установленном порядке и осуществляющее предпринимательскую деятельность. Предприниматель может заниматься любыми видами деятельности, если они не запрещены законом (хозяйственно-производственной, торгово-закупочной, инновационной, консультационной, посреднической).
    Стоит отметить, что предпринимательская деятельность может осуществляться как одним человеком, так и коллективом (партнеры), с применением наемного труда или без него, с образованием юридического лица или без него.
    А студент может стать предпринимателем? Давайте обратимся к законодательству. Не всякий гражданин вправе заниматься предпринимательской деятельностью. Необходимым условием для того, чтобы можно было зарабатывать деньги предпринимательством, является дееспособность человека. Дееспособным человек считается с момента совершеннолетия, то есть по достижении восемнадцатилетнего возраста. За несовершеннолетних почти все сделки совершают от их имени только их родители, усыновители и опекуны (ст. 28 Гражданского кодекса Российской Федерации).
    Однако полная дееспособность может наступить и раньше указанного возраста. Гражданин, не достигший восемнадцатилетнего возраста, приобретает дееспособность в полном объеме со времени вступления в брак (п.2 ст.21 Гражданского кодекса Российской Федерации). Статьей 13 Семейного кодекса Российской Федерации брачный возраст установлен в восемнадцать лет. Однако при наличии уважительных причин разрешается вступать в брак лицам, достигшим шестнадцати лет. Следовательно, шестнадцатилетний подросток, вступивший в брак, становится полностью дееспособным.
    Важно знать: в соответствии с гражданским законодательством отдельные категории дееспособных граждан не имеют права заниматься предпринимательской деятельностью. Так, должностным лицам органов государственной власти и государственного управления запрещается: заниматься самостоятельной предпринимательской деятельностью; иметь в собственности предприятия; самостоятельно или через представителей голосовать посредством принадлежащих им акций, вкладов, паев, долей при принятии решений общим собранием хозяйственного товарищества и общества; занимать должности в органах управления хозяйствующего субъекта. Не имеют права заниматься предпринимательской деятельностью военнослужащие, работники полиции, работники налоговых органов и органов налоговой полиции и некоторые другие категории граждан.
    Что же все-таки необходимо для развития предпринимательства, иначе говоря, какие условия необходимы для развития предпринимательской деятельности? Ответ:
    стабильность экономической и социальной ситуации в стране;
    экономическая свобода производителей и потребителей;
    открытость и равновесность рынка.
    Имеются ли в настоящее время перечисленные условия? Давайте подумаем вместе, рассуждая о стабильности экономической и социальной ситуации в стране. Экономический кризис, обнищание народа, с одной стороны, создают трудности для развития предпринимательства, с другой стороны, государство пытается защитить предпринимателей через систему законодательных актов и льгот.
    Теперь поговорим немного об экономической свободе участников рыночных отношений. Экономическая свобода производителя – это право производителя товара на самостоятельный выбор профиля, структуры и объема производства, условий реализации, цен на продукцию. Достигается компромиссными соглашениями с другими участниками рынка. Свобода потребителя выражается в свободе потребительского выбора на рынке товаров и услуг. А свобода предпринимательства выражается в том, что каждый член общества самостоятельно распределяет свои ресурсы в соответствии со своими интересами и при желании может самостоятельно организовать процесс производства товаров и услуг. Предприниматель сам определяет, что, как и для кого производить, где, как, кому, сколько и по какой цене реализовывать произведенную продукцию, каким образом организовать производство и на что тратить полученную выручку.
    Наверное, нас заинтересует, а что же такое открытость и равновесность рынка. Открытый рынок — рынок, на котором может торговать любой субъект и цены которого определяются только спросом и предложением. Рыночное равновесие (равновесность рынка) — ситуация на рынке, когда спрос на товар равен его предложению; объём продукта и его цену называют равновесными. Рыночное равновесие характеризуется равновесной ценой и равновесным объёмом.
    При выполнении вышеперечисленных условий предпринимательство будет развиваться.
    Давайте подумаем вместе и определим, какие же черты предпринимательства являются важнейшими? А ведь это – риск, мобильность и динамичность. Через какие функции раскрывается сущность предпринимательства? Ведь предприниматель:
    берет на себя инициативу соединения факторов производства для создания товаров (работ, услуг) с целью получения прибыли;
    является организатором производства. Определяет стратегию и тактику поведения фирмы, принимает ответственность за их проведение;
    внедряет новые нетрадиционные приемы и способы увеличения прибыли;
    не боится риска и сознательно идет на него ради достижения цели.
    Чтобы реализовать товар, необходимо его иметь. Товар предприниматель может делать сам, получать от других, а затем реализовывать. Исходя из этого, предпринимательство можно разделить на три формы: производственное, коммерческое, финансовое. Будучи относительно самостоятельными видами деятельности, они дополняют друг друга.
    Попытаемся понять, что же представляют по сути каждое из этих видов? Производственное предпринимательство – это деятельность, направленная на производство продукции, оказание услуг, выполнение работ, сбор, обработку и предоставление информации и т.д., подлежащих последующей реализации потребителям. Для его осуществления требуются финансовые и материальные ресурсы. Исходный элемент технологии реализации данного вида предпринимательства – выбор основной области деятельности. Прежде чем выбрать вид деятельности, необходимо провести маркетинговое исследование: насколько товар ил услуга нужен покупателю (клиенту), каков спрос, его величина и тенденции развития, какова возможная продажная цена, издержки производства и реализации, предполагаемые объемы продаж. Результат данного вида предпринимательства – производство продукта, который должен быть реализован. Усилия предпринимателя должны быть сосредоточены на заключении сделки на поставку изготавливаемого продукта до начала его производства, чтобы снизить риск банкротства. Предприниматель должен стремиться к ускорению оборачиваемости, считать, что сделка должна давать годовую прибыль не менее 20-22% от затрат.
    Коммерческое предпринимательство характеризуется тем, что его содержание составляют товарно-денежные, торгово-обменные операции, то есть имеет место перепродажа. В качестве исходной стадии технологии стоит выбор – что покупать, что перепродавать и где цена реализации должна быть выше закупочной цены, спрос на предполагаемый товар должен быть достаточным. Необходимо провести исследование рынка с целью оценки его конъюнктуры (то есть совокупности условий, определяющих рыночную ситуацию в определенный момент времени): какие товары, услуги, работы будут пользоваться наибольшим спросом, каковы цены покупки и реализации.
    Предприниматель должен разработать конкретный план действий – маркетинг-план. В нем определить мероприятия по проведению сделки купли-продажи; сделать расчет цен по закупке и продаже, затрат, результатов; определить средства на рекламу, транспортные расходы, расходы на оформление коммерческих документов, требуемый персонал, затраты по аренде помещений, формы реализации товаров, закупку товаров, обосновать получение кредитов, рассчитать налоги. Важный момент при разработке маркетинг-плана – это увязка по срокам и исполнителям. Тщательно составленный маркетинг-план позволяет оценить выгодность или убыточность сделки.
    Финансовое предпринимательство является разновидностью коммерческого предпринимательства, только объектом купли-продажи здесь выступает специфический товар: деньги, валюта, ценные бумаги. Рынок денег, валюты и ценных бумаг является реальностью, его участниками являются банки, фондовые биржи, юридические и физические лица. Предприниматель должен проанализировать рынок ценных бумаг и маркетинговой деятельности. Необходимо найти и привлечь потенциальных покупателей денег, валюты и ценных бумаг. Одновременно он устанавливает источник получения денег, валюты и ценных бумаг. Предприниматель может выступать в роли продавца, ростовщика, предоставляющего деньги, валюту и ценные бумаги потребителю взаймы за определенную плату или под определенный процент.
    Важной формой финансового предпринимательства является эмиссия ценных бумаг. Предприниматель их продает, размещает на определенных условиях и обязательствах в качестве «финансового товара». Покупка ценных бумаг и продажа за большие деньги является распространенной формой. При отсутствии денег для покупки ценных бумаг предприниматель может осуществлять их покупку в кредит.
    Финансовое предпринимательство нуждается в наличии хорошо поставленной информации. При этой сделке предприниматель должен особое внимание уделить проверке финансовой состоятельности покупателя, установить гаранта, который поручается за покупателя.
    Финансовая сделка считается успешной, если ее расчетная прибыль составляет не менее 5% от денежной выручки (объема сделки), при долговременных сделках этот процент повышается до 10-15%.
    Существуют ли другие виды предпринимательства? Думаю, что вы меня поддержите в плане того, что предпринимательство делится ещё на несколько видов по следующим признакам.
    В зависимости от распространения на различных территориях делится на местное, региональное, национальное, международное и мировое предпринимательство.
    С точки зрения темпов развития, уровня прибыльности и доходности:
    на быстрорастущие и медленно наращивающие темпы развития компании;
    на высокоприбыльные и низкорентабельные фирмы;
    осуществляющие низко рисковые и очень рисковые виды бизнеса.
    А вся ли предпринимательская деятельность законна? По признакам законности предпринимательство делится на законное (в соответствии с действующим законодательством), незаконное (в соответствии со статьей 171 Уголовного кодекса Российской Федерации) – без регистрации, без лицензии, с нарушением условий лицензирования, если оно нанесло крупный ущерб гражданам или государству. Лжепредпринимательство – это создание коммерческой организации без намерения осуществлять предпринимательскую или банковскую деятельность, имеющее целями получение кредитов, освобождение от налогов, извлечение иной имущественной выгоды или прикрытие запрещенной деятельности, причинившей ущерб гражданам, организациям или государству. По незаконному и лжепредпринимательству установлена уголовная ответственность.
    А известно ли вам, что государство оказывает финансовую поддержку начинающим предпринимателям? При наличии бизнес – плана безвозмездно выдается субсидия.
    В Пермском крае по инициативе губернатора Виктора Басаргина почти в 2 раза увеличен размер бюджетной поддержки начинающим предпринимателям. По информации краевого агентства по занятости населения, максимальный размер единовременной финансовой помощи безработным гражданам, желающим организовать собственное дело, увеличен почти в 2 раза — до 107,8 тыс. рублей. Напомним, размер единовременной финансовой помощи на самозанятость безработных граждан не изменялся в крае с 2009 г. и составлял 58,8 тыс. рублей. Его повышение связано с ростом страховых взносов в пенсионный фонд для индивидуальных предпринимателей и инфляцией.
    Подводя итог выше сказанному, хочу отметить, и вы, наверное, с этим согласитесь, что предпринимательству отводится важная роль в хозяйстве страны, так как предприятия (особенно малые и средние) позволяют расширить сферу приложения труда, создавать возможности для реализации предпринимательской деятельности населения, приложения творческих сил, стимулировать развитие семейного бизнеса, снизить социальную напряженность и обеспечить ресурсосберегающий экономический рост.
    Вместе с тем малый бизнес является одним из наиболее гибких секторов экономики, в котором новаторский подход, достаточно высокие темпы роста сочетаются со сравнительно небольшими затратами на создание предприятия. Приоритеты развития малого бизнеса, определенные государством, связаны с производством и переработкой сельскохозяйственной продукции, производством промышленных товаров и товаров народного потребления, включая товары, имеющие экспортный потенциал, а также оказание производственных, коммунальных и бытовых услуг.

  • МИНИСТЕРСТВО ОБРАЗОВАНИЯ РЕСПУБЛИКИ БЕЛАРУСЬ
    БЕЛОРУССКИЙ НАЦИОНАЛЬНЫЙ ТЕХНИЧЕСКИЙ УНИВЕРСИТЕТ
    ФАКУЛЬТЕТ МАРКЕТИНГА, МЕНЕДЖМЕНТА, ПРЕДПРИНИМАТЕЛЬСТВА
    Кафедра маркетинга
    Эссе на тему
    «Мой будущий бизнес»
    Автор: ПокладК.С.
    группа  10503412
    Руководитель:
    к.т.н., доцент
    Минск
    2015
    ВВЕДЕНИЕ
    Моя будущая специальность – «Бизнес-администрирование». Являясь
    студентом 2-го курса, я уже начал изучать специальные дисциплиныи овладевать
    мастерством бизнес-аналитика, маркетолога, экономиста, менеджера.Моя будущая
    профессия – экономист, а сферой деятельности может быть любой сектор экономики,
    однако я мечтаю организовать свой собственный бизнес. Наверное, у меня еще
    недостаточно профессиональных знаний, и все же я постараюсь изложить в данном
    эссе некоторое представление о своей будущей деятельности. Изучение дисциплины
    «Маркетинг» позволило мне получить знания о факторах микро- и макросреды,
    влияющих на конкурентные позиции предприятия, взвешенно подходить к оценке
    рыночной ситуации,  правильно выбирать маркетинговую стратегию ведения бизнеса
    и т.п.
    Актуальность данного сообщения определяется несколькими
    аспектами: во-первых, востребованностью на рынке потребителей товара,
    подлежащего разработке; во-вторых, – теми выгодами и преимуществами, которые
    приобретут потребители, отдав предпочтение продукту моего бизнеса; в-третьих,
    попытка экономического обоснования проекта, свидетельствует о том, что любой
    бизнес требует серьезного и взвешенного подхода к оценке ситуации.
    Цель эссе – продемонстрировать понимание социальной
    значимости, экономической целесообразности и рыночной перспективности проблемы
    создания и развития предприятия малого бизнеса, а его задачами являлась
    разработка идеи и определение инновационных подходов для ее реализации на рынке
    потребительских товаров первой необходимости.
    ОСНОВНАЯ ЧАСТЬ
    Мой будущий бизнес – производство и выпуск туалетной
    бумаги.Туалетная бумага – товар первой необходимости, потребление которого
    ожидается стабильным, что минимизирует риски и является неоспоримым
    доказательством в сторону «за» на этапе разработки данного бизнеса. Даже во
    времена кризиса предприятия, выпускающие подобные виды продукции, не испытывают
    особыхпроблем с их реализацией, поскольку их покупают все и всегда. Принимая
    данное решение, исходили из того, что в среднем 1 белорус использует 1 рулон
    туалетной бумаги в месяц[1].Сейчас на белорусском рынке существует около 40
    фирм, занимающихся сбытом туалетной бумаги. Большинство из них занимаются
    обычной перепродажей из других стран (преимущественно из России, Украины,
    Польши). Однако в Беларуси достаточно собственной целлюлозы – основного сырья
    для производства бумаги. Со строительством и запуском в производство
    Светлогорского целлюлозно-картонного комбината (ЦКК), продукция которого
    экспортируется в страны СНГ, Балтии, Евросоюза [2]. Это единственное в стране
    предприятие по производству беленой сульфатной целлюлозы, из которой
    производится гофрокартон, бумага гофрированная, картон фильтровальный, мешки
    бумажные упаковочные, картон для плоских слоев гофрокартона, сотовый
    заполнитель, четырехклапанные стандартные ящики индивидуальных размеров.
    Туалетной бумаги в ассортиментной линейке – нет, как нет и других
    конкурентоспособных предприятий-аналогов, несмотря на то, что их общее
    количество в стране составляет 9.
    Таким образом, анализ рынка показал, что конкурентоспособных
    предприятий-производителей туалетной бумаги в Республике Беларусь нет. Не
    наблюдается и особых инноваций на зарубежном рынке производителей. В основном компании
    просто производят стандартную бумагу, отвечающую даже небольших инноваций способно
    вывести предприятие на лидирующие позиции. Именно такой подход был положен в
    основу разработки собственного бизнеса по производству отечественной туалетной
    бумаги. Убедительным аргументом его целесообразности является также то, что
    допустив на начальном этапе освоение рынка лишь на 2,6-3% (около 250 000
    потребителей), можно добиться ощутимого экономического эффекта и быстрой
    окупаемости бизнес-проекта.
    Как известно, основной преградой при создании бизнеса
    являются большие затратына начальном этапе. Предположим, что наше производство
    будет расположено вблизи Светлогорского ЦКК, и произведем необходимые
    приблизительные  расчеты для реализации бизнес-проекта.
    Все данные приведены по нынешнему курсу в $ США  для удобства
    восприятия.
    Основные этапы организации бизнеса:
    1) Создание предприятия малого бизнеса, его
    регистрация.
    2) Организация производства.
    3) Организация сбыта.
    Этап регистрации включает
    разработку устава, оформление заявки ирегистрацию в местных органах власти и в налоговой
    службе. Для начала будет найдено нежилое помещение площадью примерно  100 м2для
    размещения производственной зоны, складов сырья и готовой продукции.
    Регистрируясь
    самостоятельно, придется потратитьнебольшие  денежные суммы и
    какое-то время.
    Предоставив решать этот вопрос специализированной юридической фирме, затраты
    будут составлять около390$,однако эти затраты освободят время для организации
    непосредственно производства.Сама аренда помещения будет варьироваться от 580$.
    На этапе
    организации производства
    также
    важно найти подходящего поставщикаоборудования, при этом важно учитывать
    его расположение относительно создаваемого предприятия для более оперативного
    решения всех вопросов, связанных с монтажом оборудования, обучением персонала, обслуживанием,
    заменой и т.д.
    Линия по производству туалетной бумаги минимум состоит из четырех станков: перемоточного (для перемотки сырья в валики
    подходящего размера), втулочного (для производства картонных втулок для
    рулонов), отрезного (для нарезки длинных валиков бумаги на рулоны) и упаковочного.

  • When I was a child I used to say: I want to have my own business in future. It seemed so smart and very progressive to me at that time.
    We don’t have any friends of the family or relatives who have any business. But internet today is full of different information about small and big business.
    When I see notes of different bloggers that in past they had made a good business, I am really surprised. Now they share their experience and make many courses. Well I am not an adult but already can say these people make very good business. They get money for advertising, for their courses and so on. This kind of business I don’t understand and I will never accept.
    Another popular business is internet shops. Well yes, it’s very progressive today, because you can stay at home and choose any model you like. But I am not happy to buy clothes there because sizes can be different and not good for you. Sometime the quality of clothes is not good.
    I am not sure I can handle with any of this business. I think I could be a teacher of English. I can open my agency, organize group, find other teachers and help to other people. I think this business is fair and can be useful to everyone. I would work with children. Make interesting lessons, sing songs, dance I think it’s really interesting.
    I am agree that it’s better to have your own business. But people are different and everyone is free to choose by himself. I know my parents would never start their own business. They like their job, got used to the schedule and like the colleagues.
    So we are free to do whatever we want. Of course there can be mistakes, because business is not only money, it’s also risk, hard work and a lot of efforts.

  • Сочинение учащейся 8 класса МКОУ «Малоатлымская СОШ»
    Уткиной Надежды Александровны.
    Значение предпринимательства в современном обществе.
    XXI век – эпоха новых открытий, время больших перемен… Современное российское общество нуждается в ответственных людях, которые серьезно относятся  не только к себе, но и к  окружающим… Поэтому  сейчас перед каждым гражданином нашей страны открываются огромные перспективы для реализации жизненных планов и своего профессионального роста.
    Вспомним: человек во все времена стремился стать первым!  Когда-то, в стремлении доказать свою силу, свое превосходство побеждали на  поединках, покоряли новые земли, открывали законы природы, слагали прекрасные стихи… Сегодня с этой целью люди идут в бизнес. Во все времена предпринимателем двигали стремление к достижению поставленной цели и интерес к созданию своего дела. Неслучайно о бизнесмене говорят «деловой», что означает «весь в деле». Бизнес – реальная возможность выявить свой внутренний потенциал. А рыночная конкуренция – лучший способ показать, на что ты способен! Общеизвестно: лишь самый быстрый, самый сильный, дисциплинированный и умный способен стать первым.
    Действительно, предприниматель – это человек, который находит способы лучшего использования ресурсов страны и снижения разнообразных потерь, который создает новые рабочие места. Неслучайно, в любой из развитых стран современного  мира: Японии, США, Швейцарии – наиболее почитаемые люди – предприниматели; ведь именно эти люди платят своей стране самые большие налоги, те самым поддерживая государственную систему. Новыми рабочими местами для населения, уплатой налогов, созданием передовой, конкурентоспособной продукции они «с лихвой»  отдают свой долг обществу.                                                                                                Да, предпринимательство – это возможность вести обеспеченную жизнь.  Однако лишь те, кто не жалеет сил и времени, рискует своими средствами и своим будущим, достигают успеха. «Кто ищет, тот всегда находит». Сегодня наша страна, как никогда, нуждается в  тех, кто поднимет ее на достойную высоту и поможет занять достойное страны такого масштаба и такой истории место. Во многом возрождение России зависит именно от предпринимателей.  Предпринимательство   способствует не только повышению материального и духовного потенциала общества, не только создает благоприятную почву для практической реализации способностей и талантов каждого человека, но и ведет к единению нации, сохранению ее национального духа и национальной гордости!

  • МИНОБРНАУКИ РОССИИ
    Федеральное Государственное Бюджетное образовательное учреждение высшего профессионального образования
    «ВЛАДИВОСТОКСКИЙ ГОСУДАРСТВЕННЫЙ УНИВЕРСИТЕТ ЭКОНОМИКИ И СЕРВИСА» (ВГУЭС)
    ЭССЕ НА ТЕМУ
    «Проблемы предпринимательства в современной России»
    Выполнил студент
    группы БТД-12-ЛО2
    Шиндин Семён
    предпринимательство россия налоговый производитель
    Владивосток 2015 год
    В своём эссе я бы хотел рассказать о проблемах российского предпринимательства в настоящее время.
    Для начала, введём понятие слова «предпринимательство». Под предпринимательской деятельностью понимается самостоятельная, осуществляемая на свой риск деятельность, направленная на систематическое получение прибыли от пользования имуществом, продажи товаров, выполнения работ или оказания услуг лицами, зарегистрированными в установленном законом порядке. Из этого определения можно сделать вывод, что целью предпринимательства является систематичное получение прибыли.
    Российское предпринимательство появилось в начале двадцатого века (1900-1917гг.). Двадцатый век для российского предпринимательства был ярок, полон событий и очень тяжел. Политические, экономические, социальные процессы, происходящие в нашей стране за последние сто лет, заставили российское предпринимательство пройти путь от вытеснения вотчины – дворянского хозяйствования до развития бизнеса на мировом уровне. В двадцатом веке предпринимательство в России претерпевало коренные изменения: в начале века, в Советском союзе, главной задачей являлось полное уничтожение частной собственности и свободных рыночных отношений, что привело к острым социально – экономическим кризисам, товарному дефициту, репрессиям, голоду. Лишь стимул к развитию предпринимательство получило с началом экономических реформ 1965 г. , но почти до конца 1980-х годов становление коммерческих отношений происходило как постепенное расширение прав предприятий при сохранении приоритета государственного плана.
    Лишь в начале 90х годов предпринимательство в России стремительно начало развиваться в связи с переходом к рыночной экономике.
    В настоящее время в России множество крупных, средних и мелких фирм, функционирующих в различных сферах производства и торговли.
    На сегодняшний день малый и средний бизнес в России все еще находится в отдаленных условиях от рыночных отношений, присущим европейским и западным странам. Одной из проблем российского бизнеса является минимальная поддержка со стороны государства, так как практически отсутствуют налоговые льготы. Предприниматели отмечают также проблему слишком высоких налоговых ставок, сложность и запутанность налоговой системы, сложность и несовершенство законодательства, регистрирующего предприятия, регламентирующего их деятельность, например, сертификацию продукции, лицензирование и т.д. Препятствия на пути предпринимательства получили наименование «административные барьеры».
    Также остро ощущается пристальное внимание в лице многочисленных контролирующих органов, при этом многие из нас понимают, что избежать нарушений в реальной жизни бывает крайне сложно. И всё же штрафы, накладываемые контролирующими органами, иногда достигают пугающих и непосильных для предпринимателей размеров и соответственно наносят вред существованию самого предпринимательства в России.
    Единственный выход у предпринимателей в этом случае – это знание своих прав и обязанностей. Однако и здесь мы сталкиваемся с пробелами в законодательной базе Российской федерации в отношении малого и среднего бизнеса и предпринимательства в целом. Но также хотелось бы отметить правовую неграмотность самих предпринимателей в этой сфере.
    Я бы хотел отнести к проблемам бизнеса в России ещё один немаловажный фактор: отсутствие положительного имиджа отечественного производства. Ведь очень сложно начинать производить собственную продукцию и запускать её на рынок, когда в этом сегменте уже имеется большое количество признанных участников, особенно, иностранных, если при этом у предпринимателя нет возможности выделить большие денежные средства на рекламу и стимулирование сбыта.
    Но мне хочется особенно отметить одну проблему, которую я считаю одной из самых важных: нестабильная экономическая ситуация в стране.

  • Skip to content

    What is Business?

    Business is an organization comprising people who strive together to achieve common objectives and goals. It is important for a business organization to have a vision that implies what it intends to achieve in the future and values that represent the organization’s integrity.

    A business organization is a commercial, industrial, or mercantile enterprise, and comprises the people who constitute it. Business is a legally-recognized organization which provides goods, services, or both to the consumers.

    According to F. C. Hooper, “The whole complex field of commerce and industry, the basic industries, processing and manufacturing industries, the network of ancillary services, distribution, banking, insurance, transport and so on, which serve and interpenetrate the work of business as a whole, are business activities.”

    Learn about:- 1. Introduction to Business 2. Meaning and Definition of Business 3. Features 4. Characteristics 5. Steps in the Processing and Selection of Ideas 6. Economic Objectives  7. Functions 8. Requisites 9.

    Types of Business Activities 10. Dimensions 11. Strategy of the Future in Business 12. Role of Profit in Business 13. Diversification 14. Ethics 15. Challenges that A Business Faces due to Government’s Policy Changes(Impact of Government Policy Changes on Business).

    What is Business: Meaning, Definition, Ideas, Ethics, Types, Functions, Features, Objectives, Strategy, Diversification and More…


    Contents:

    1. Introduction to Business
    2. Meaning and Definition of Business
    3. Features of Business
    4. Characteristics of Business
    5. Steps in the Processing and Selection of Business Ideas
    6. Economic Objectives of Business
    7. Functions of Business
    8. Requisites of Business
    9. Types of Business Activities
    10. Dimensions of Business
    11. Strategy of the Future in Business
    12. Role of Profit in Business
    13. Diversification of Business
    14. Ethics of Business
    15. Challenges that A Business Faces due to Government’s Policy Changes

    What is Business – Introduction

    Business is an organization comprising people who strive together to achieve common objectives and goals. It is important for a business organization to have a vision that implies what it intends to achieve in the future and values that represent the organization’s integrity.

    Organizations need to create an envi­ronment where people want to work and concurrently develop themselves through coaching, feedback, and information sharing. A business house should work in partnership with its employees, customer, suppliers, community, and the media. In order to enhance the image, it should communicate the key messages, both internally and externally, and gain commitment to its principal goals.

    A reputed business house often prefers to share its best practices with its competitors as it believes in networking, partnering, and informal collaboration. It should even undertake a practice of rewarding its employees when they perform well. It should establish a process to learn, grow, and measure its suc­cesses. Thus, the primers of an organization include vision, values, behaviours/competencies/standards, coaching, information sharing, networking, rewarding, and continuous learning.

    A business organization is a commercial, industrial, or mercantile enterprise, and comprises the people who constitute it. Business is a legally-recognized organization which provides goods, services, or both to the consumers.

    In order to develop an understanding of business organizations, one should be able to identify the differences between the private and public sectors of the economy, state the traditional examples of business organizations in the private sector (sole trader, partnership, and private limited and public limited companies), understand the difference in terms of liability among these business types, and identify two non-traditional business types (co-operatives and franchises).

    The fundamental idea regarding business is that it is an economic activity and business decision-making is an economic process. The principal aim of any business is to make profit. An HR manager must have the ability to understand the changes in an environment, and the direction and speed of those changes. He/she should be able to develop an action plan that is essential to cope with the changes, involve employee representatives, gain their confidence, implement the changes, and finally measure the benefits of these changes.

    Understanding an organization encompasses understanding its structures, behaviours, cultures, resources, and functions, and how it learns to manage the external environment. Once the business environment has been understood, all the activities taking place inside and outside it are also easily understood.

    The purpose of every business is to serve customers well. It has to deliver value by offering good quality goods/services at an affordable price. To survive and flourish in the economic jungle, businesses have to win the hearts of customers by putting resources to best use. Businesses, essentially, exist for customers.

    1. Challenge and Excitement:

    Businesses offer challenge, excitement and immense satisfaction if one is able to run them successfully. There is, evidently, tremendous incentive for everyone to run the race ahead of rivals and make money. Businesses generate employment and offer livelihood for millions of people all over the world.

    2. Economic Institutions:

    Businesses are economic institutions and they survive as long as they are able to make money. Profit is the risk premium and reward for the efforts and hard work put in by the businessman. Profit is the engine of growth and is a measure of the success of a busi­ness. Without profits, businesses collapse under their own weight.

    3. Create, Communicate and Deliver Value:

    Apart from making money, Businesses need to offer unmatched value to customers. They must keep costs low. They need to offer high quality goods. They need to do the job netter than rivals. Only then they will play a long innings.

    4. Risky Path Full of Problems:

    It is well worth remembering here that the path of a businessman is full of thorns. The tastes of customers might change, competition may get heated up, rivals may come out with novel products/services at a lesser price, government may impose additional taxes making the business unviable, etc. Every businessman, therefore, must be prepared to accept risk and uncertainty. He must think and act like a winner always.


    What is Business Meaning and Definitions: Suggested by Prof. Owen, R. L. Dicksee, F. C. Hooper, Prof. Hancy, Melvin Anshen, Alfred Marshal and Peter Drucker

    A Business may be defined as, an activity organised and operated to make available goods and services to the society under the profit motive.

    Prof. Owen defines, “A Business is an enterprise engaged in the production and distribution of goods for sale in the market or rendering of services for a price”

    R. L. Dicksee has rightly defined business as, “A form of activity pursued, primarily, with the object of earning profit for the benefit of those on whose behalf, the activity is conducted.”

    According to F. C. Hooper, “The whole complex field of commerce and industry, the basic industries, processing and manufacturing industries, the network of ancillary services, distribution, banking, insurance, transport and so on, which serve and interpenetrate the work of business as a whole, are business activities.”

    Prof. Hancy efficiently summed up the meaning of business activities in the following words – “On one hand business rests on the technical processes of trade and manufacture. On the other, it looks to the market. At the junction stands the businessman, either directing the technical process of production or gauging the market or doing both but always engaged in buying and selling for the purpose of gain.”

    According to Melvin Anshen, it is the way, men make their living, in short, the term, and “Business refers to the activity which is pursued by a human being of the acquisition of wealth”. Literally, “Business” means the state of being busy. It is associated with any activity that one can be busy about.

    So, an individual remains busy in some work he is said to be doing some business in the broadest sense all activities which a man performs since morning till evening for the better living may be described as business activities and subject matter of economics.

    According to Alfred Marshal It is the study of mankind in the “Ordinary business of life”. This ordinary business of life stands for that part of individual which is mostly concerned with the attainment of better living in short the term “Business” refers to an activity which is pursued by a human being for the acquisition of wealth, for instance a person selling vegetable and earning some money, a person operating a daily needs shop to earn some money for living, a bookseller selling books for some economic benefits, a rice mill or dal mill owner is a businessman who earns some money.

    An Industrialist manufactures some products and by selling it earn some profit. Money lender, banker or a financial institution is also businessman who deals in money for interest and profit.

    In the words of Wheeler, “Business like weather, is with us every day. Buying and selling, hiring and firing, producing or financing these are but a few of the many business activities which daily influence the lives of all of us directly or indirectly.”

    Thus, business is a comprehensive term, it is a complex of gainful human activities. In economic terminology, Business may be defined as any activity which leads to the creation of utility, in the form of goods and services to satisfy human wants. The main objective of business activities is to create exchange as well as possess wealth in the form of physical output and useful services. Business, no doubt, is an economic activity with the object of earning an income, i.e. Profit and thereby, accumulating wealth or purchasing power.

    This activity always involves an element of risk or loss or uncertainty. In fact business is an adventurous activity. Those who have guts and daring can only involve in this activity, which an Ordinary person cannot. In earlier days profit maximisation was the sole objective of business. Money chasing was the primary aim of any economic activity. In modern days this chasing concept of business is changed and business has become a social and economic institution.

    Every business has some social responsibility towards, the people in general because it does not live in a vacuum. Business is not an end but a valuable means to achieve an end that is human welfare and public good. Certainly it touches every aspect of our life. In fact we all live in a corporate society. It is a moral responsibility of modern business to satisfy the unlimited, ever-changing and varied demands of the community, so that, the community can enjoy better standards of living, maximum social happiness and welfare.

    Finally, a business aims at profit but through service. Business has various objectives. To earn income and acquisition of wealth is not the sole objective of any business but the basic or real objective of business is to create a customer and to satisfy his needs, wants and demands. “Peter Drucker” points out that there is only one valid definition of business purpose, i.e. “To create a customer” A business cannot survive without customers.

    Modern business aims at profit through service or profit- nun service and not profit irrespective of service and satisfaction of customers and society in general. Now-a-days the profit concept is replaced by profit-cum-service. This concept of profit through service has become popular and widely accepted by the modern businesses. All types of modern business activities create a flow of goods and services that may be called as National Output and also which generate a flow of income which means.

    National income through employment of human and non-human material resources in the best possible manner. Business activities helps directly in economic development and appreciation in gross national income or wealth. In developing and under- developing countries business activities have unlimited scope.


    6 Main Features of Business Dealing in Goods and/or Services, Production (Manufacturing) and/or Exchange of Goods and Services and More…

    A business is an economic institution engaged in production and / or distribution of goods and services in order to earn profits and acquire wealth. Whatever may be the form of business organisation, for example Sole Trader ship, Hindu Undivided Family, Partnership Firm. Joint Stock Company or Co­operative undertaking or whatever may be the form or size of business it possesses the following characteristics.

    The following are the common features found in every business organisation:

    Feature # 1. Dealing in Goods and/or Services:

    The first and basic feature of business is that it deals in goods and/or services. The goods may be consumer-goods or industrial goods or capital goods. The consumer goods are meant for direct or indirect consumption. For instance eatable goods are grouped under direct and immediate consumption and industrial or capital goods are meant for being used for the purpose of production e.g. machines, tools, equipment etc. These goods may be called as producer’s goods.

    Business activities are not restricted to production and distribution of various goods, but they include services also. These services include the supply of electricity, water, gas, finance, insurance, banking, advertising, warehouse, transporting etc. Thus, dealing in goods or services is a common feature of business.

    Feature # 2. Production (Manufacturing) and/or Exchange of Goods and Services:

    Production of goods of any type and their exchange for value of price is a business. All activities which are carried under love and affection, religion, charity, or for gratitude not for value or price are non-business activities. A business involves production and/or exchange of goods and services only for some value or price. Any activity without some value or price (profit) is not a business.

    Feature # 3. Regularity and Continuity:

    Production and exchange of goods as well as services, though for value or price for once in a while is not a business activity. For instance if a person sells his residential house for money and purchases a new house such an activity is not business. On the other hand, if a person earns his living by purchase and sale of buildings on a regular and continuous basis, such an activity is a business activity.

    Thus, any activity which apparently looks like business activity but is not carried out regularly cannot be termed as business activity. As such regularity as well as continuity of such activity is the most common but important as fundamental feature or characteristics of business.

    Feature # 4. Profit Motive:

    Behind every business there is a ‘Profit Motive’. In absence of profit motive any activity cannot be called a business. People engage themselves in business primarily with a view to earn some profit and acquire wealth. If quality goods and services are provided, the society is ready to pay a little bit more and thereby a business can earn more profit. There is a direct relationship between the satisfaction of consumers and goods and services provided to them.

    This relationship is converted into the profit of the businessman. The extent of profit depends upon the quality of goods and services. Generally, better quality goods and services are accompanied by higher profit. In public sector enterprise, the term profit is designed or defined as, ‘Surplus’. Profit motive is now widely accepted by public, committed to serve the community with satisfactory goods and services at reasonable prices.

    Feature # 5. Existence of Risk and Uncertainty:

    All types of business activities involve an element of risk and uncertainty. Fast, multiple and ever growing changes that are taking place in the world of business and industry play a major role in raising risk and uncertainty in business.

    For instance, due to changes arising within and outside the business enterprises like changing technology, changing consumers tastes, needs, fashion, group competition due to globalisation, faulty managerial decision, faulty planning are causing and creating heavy risks and uncertainty in business which directly affect the life and survival of business enterprises.

    Feature # 6. Risk of Uncertainty of Return:

    There is always risk and uncertainty of returns on investment in the form of profit, as the impact of variety of factors. No one can accurately predict about the future as to what is going to happen in near future. There are a number of uncontrollable elements that may put a business in losses.

    These losses may be cause by natural calamities also. There is no guarantee of what return a businessman can earn on his investment because of risk and uncertainty of returns. No guarantee of specific returns on the investments in the business can be assumed because of changing government policies and laws.

    It becomes clear from the above characteristics of business that, business denotes a systematic production (manufacturing) and / or exchange of goods and services which are undertaken regularly and continuously with a motive to earn profit by satisfying human needs and involving an element of risk and uncertainty. Business can be easily separated from profession and employment as these are other occupation of human beings.


    What is Business – 5 Important Characteristics: Profit Motive, Productive, Economic Activity, Continuity in Dealings and Risk and Uncertainty

    An activity can be categorized as business if it has the characteristics listed below:

    1. Profit Motive:

    Earning profit is the main objective of business without which it can’t exist. An activity carried out without profit motive cannot be called business activity. Profit motive is the highest motivator for a business person. It ensures sustainability of the business. However, it is imperative for business enterprises to adopt an attitude of service motive as well.

    2. Productive:

    The fundamental feature of business is buying, producing and selling of goods and services.

    Goods can be classified as:

    (i) Consumer Goods such as clothes, books, packaged food etc.

    (ii) Producer Goods such as machinery, raw material, production tools etc.

    Services are goods of intangible nature. For example, services rendered by catering agencies, customer support department of a company and a wellness center.

    3. Economic Activity:

    Business is an economic activity which involves production of goods and services for profit-making. Non-economic activities such as doing charitable work, nurturing one’s own farm for personal consumption of farm produce cannot encompass business.

    4. Continuity in Dealings:

    It means that there should be buying and selling of goods and services for money on regular basis. Consistency in dealings of goods and services is an important prerequisite of business. A single transaction cannot be categorized as business. For instance, if a man sells his furniture at a profit, it will not be called as business. However, if the man is selling furniture regularly in the market, the activity will be termed as business.

    5. Risk and Uncertainty:

    Like any economic activity, business also has its own downsides; risk and uncertainty are two of them. The causes of risk and uncertainty are – changing requirements of consumers and revision of government policies. Trade cycles also make business a risky activity. According to Keynes, a trade cycle is composed of periods of Good Trade, characterised by rising prices and low unemployment percentages, shifting with periods of bad trade characterised by falling prices and high unemployment percentages.


    What is Business – Steps involved in the Processing and Selection of Business Ideas

    Once business ideas are discovered, the following steps can be used in the processing and selection of ideas:

    1. Preliminary Evaluation and Testing of Ideas

    As a preliminary step, the technical feasibility of an idea is judged based on the availability of necessary technology, machinery, equipments, labour skills and raw materials. In order to assess the commercial viability of the project, an elaborate study of market conditions and prevailing situation is made. Feasibility analysis has to be conducted to find out the workability and probability of the project.

    2. Detailed Analysis:

    After preliminary evaluation, the idea is subjected to a thorough analysis from all angles. A complete investigation is done with regard to the technical feasibility and economic viability of the proposed project. Financial and managerial feasibility of the idea are also tested. In order to carry out the detailed analysis, experts in various areas of the industry are consulted. Since the idea is finally accepted or rejected at this stage, proper care should be taken at this step.

    After the evaluation of a business idea is completed, the findings are presented in the form of a report known as ‘project report’ or ‘feasibility report’. This report helps in the final selection of a project. It is also useful for getting increases, finance etc. from government and financial agencies.

    3. Selection of Ideas:

    In order to choose the most promising idea, the feasibility report is analysed.

    In the selection of idea for a product, the following considerations are made:

    a. Products whose imports are banned by the government.

    b. Products which can be exported easily and profitably.

    c. Products whose demands exceed their supply.

    d. Products in which the entrepreneur has manufacturing/ marketing experience.

    e. Products which show high profitability.

    f. Products which ensure specific advantages.

    g. Products for which incentives and subsidies are available.

    4. Input Requirements:

    When the entrepreneur is convinced of the feasibility and profitability of the project, he assembles the necessary resources to launch the enterprise.

    The important inputs required for launching an enterprise are as follows:

    a. Information and Intelligence – Information and intelligence are the key inputs in the success of an entrepreneur.

    b. Finance – Finance is the lifeblood of business. A business enterprise requires finance for the fixed capital as well for the working capital.

    c. Personnel – People are the most valuable asset of an enterprise and this asset does not depreciate.


    The most important objectives of a business are economic objectives and the business itself is an economic activity. The achievement of these objectives is essential for proper growth and expansion of the business.

    Objective # 1. Profit Earning:

    Profit earning is the principal objective of every business. Business will survive only if it earns profit. It is doomed if it continuously suffers losses. It has to maintain its assets and has to incur day to day administrative and manufacturing expenses. It can do so only if it earns profit.

    The success of a business is measured by regularly increasing rate of profit it earns. The goodwill of a business is measured on the basis of profits earned. The value of a business and its credibility goes up by earning profits. It can easily get loans from the financial institutions and can easily raise fresh capital from public, if it is making a good amount of profit.

    Objective # 2. Market Share:

    It is important for business to build its standing in the market. In a competitive market a business can survive only if it attains a sizeable share in the market. A business enterprise should fix a target share in market which it wants to capture and it should go on increasing it steadily.

    Objective # 3. Innovation:

    In order to survive in today’s competitive world, it is rather essential for any business to have innovation as one of the main objectives. Innovation means to add new features to the existing product or to introduce new uses of an existing product. A business must, on a continuous basis, introduce new and unique features to its products so as to have an edge of its competitors. It must also introduce new techniques of production, marketing and distribution.

    Objective # 4. Productivity:

    The available resources, both financial and physical, must be put to the best possible use. They should neither be over-utilised nor under­utilised. The value of the output should always be higher than the value of inputs. Productivity is measured by net increase in the value of output.

    Objective # 5. Physical and Financial Resources:

    A business enterprise needs both the physical resources like stock-in-trade, plant & machinery, building etc. and financial resources like capital, loans and cash to produce or purchase goods and services for consumers. It must try to acquire these resources according to its requirement and should use them judiciously to achieve maximum benefit from them. It should ensure that no equipment is idle and there is no abnormal wastage of material.


    What is Business – 3 Major Functions: Internal, External  and Support

    A Business function is a process or operation that is routinely performed in order to achieve a desired business objective. There are no hard and fast rules as to how the business has to organize itself to perform these functions. However, irrespective of the way it is organized, it has to perform these functions to achieve its objectives.

    Business functions can be broadly classified into Internal Functions, External Functions and Support functions. The three categories of business functions are not independent of each other. There is a lot of overlap and interdependence between them.

    Now let’s discuss in detail each category of functions of business:

    Function # 1. Internal:

    Internal functions are functions that are carried out within the organization. Hence, they are called Internal Functions. They consist of all those essential and crucial business activities which help to lay a business foundation.

    The main internal functions of business are as follows:

    i. Production:

    Production is the process of making the goods that the business intends to sell. It involves conversion of raw- material into a finished product, which is needed by people. Thus, it creates form utility.

    Production involves a large number of activities. It consists of activities such as product design, planning of production schedules, optimal utilization of resources such as raw material, labour, plant & machinery, etc. Quality control is another critical aspect of production function. It also involves maintaining a safe and healthy environment within the production facilities.

    ii. Procurement:

    Procurement essentially involves purchase of raw materials. In case of trading concerns, procurement involves purchase of the goods from larger distributors. The procurement function involves three aspects, namely Quality, Price and Time of Delivery. Procurement is about purchasing the right quality of material at the right price and making sure that such material is available on time.

    Large organizations have centralized Purchases or Procurement divisions. These divisions not only purchase raw materials and trading goods, but also fixed assets that are required by the organization. Procurement teams try and build relationships with strategic suppliers. They try and forecast their needs into the future.

    They look at the market situation and see if there are any chances of any shortfall of the supplies. They try and forecast price movements. They play a very critical role in keeping the costs of the business lower.

    iii. Personnel:

    Personnel function is concerned with “persons” or people. Any organization requires a large number of people to carry out specific tasks so that the organization can achieve its objectives. The personnel function makes sure that the right kind of people do the desired work in the best possible manner. It involves “Recruitment”, which is simply hiring of the people with the right skills for various jobs. It includes “Payroll”, which essentially ensures that the people are getting the pay that they deserve for the work that is done by them.

    The personnel function is probably the most complicated function of business. It is because the business is dealing with people, who have a mind of their own. While it is easy to plan for materials and machines, it is difficult to plan for people. However, the simplest way of describing the Personnel function is to make sure that there are people to carry out different tasks and that they are willing to do it happily.

    iv. Finance:

    A business cannot exist without money. Finance function focuses on making money available for business. Finance is acquired from various sources like banks, investors, and other financial institutions.

    The money so collected is used for various business activities such as purchase of fixed assets, purchase of raw-materials and/ or finished goods, making strategic investments, etc. Thus, Finance function is mostly associated with raising of money and then utilizing it.

    v. Operations:

    The nature of business has changed significantly over the years. Today, Organizations no longer restrict themselves to the core functions of Production, Finance, Human Relations (Personnel) and Marketing (External function). They do a lot of other activities also. Particularly in respect of Service organizations, the amount of such work is huge.

    For example, a stock broker’s main business is to buy and sell securities for his clients. However, he has to make sure that clients have enough money to pay for what they have bought. He needs to generate reports that explain whether the money invested by his clients has resulted in profits and losses.

    Such activities are very important for the success of his business. All such activities are collectively called Operations. For example, Bank of America is one of the largest banks of USA. It also has offices in India. However, these offices do not accept deposits or lend money.

    Instead, a large number of people are employed to provide Infrastructure support, perform Reconciliations, and ensure Regulatory compliance, Risk management, MIS reporting, etc. for its clients. Many of these employees also interact with the customers of the Bank. The customer does not even know that the person on the other side is located in a remote city, say Hyderabad, in another country, India. All these activities are called Operations.

    Function # 2. External:

    External functions consist of all those activities happening outside the premises of an organization. They mostly focus on selling the goods produced (or purchased for trading) by the business organization.

    The main external function of business is marketing. All other external functions are essentially sub functions of marketing. Normally, the Head of Marketing forecasts, plans and controls the external function of business. These functions are initiated when he/she seeks profitable business opportunities in the market.

    i. Marketing:

    Marketing is a much wider term. It is much more than selling. It is concerned with understanding the needs of potential customers and satisfying them. A business is created on the basis of a Marketing idea. For example, a businessman opens an Italian restaurant because he feels that there are lot of people who wish to enjoy eating Italian food but there are not many (or not good) restaurants who offer such food.

    Similarly, a teacher may offer tuition classes to students in the locality if he feels that there are many students who are looking for a good teacher to explain the various concepts to them. Thus, every business is attempting to bring a product, which could be either goods or services, to meet a particular need.

    Once the business is started, the business now has to make efforts to educate people that such goods and services are available in the market. The business also has to compete with several other businesses which are trying to meet the same need. The business has to reach out to potential customers so that it gets their attention and not competitors. The various activities that are taken up towards this objective come under the function of Marketing.

    Marketing involves the following sub-functions:

    a. Market Research:

    Marketing research is concerned with collecting information in terms of a business idea and analyzing it, so that appropriate marketing decisions could be taken. Let us understand this with the example of the Italian Restaurant.

    Before starting the restaurant, the Businessman would like to know as to how many people in the locality (or town or city) like Italian food, how frequently do they like to eat Italian food, how much are they willing to pay for such food, which other restaurants in the locality (or town or city) offers Italian food, what is the feedback of the people regarding the taste, quality and price of Italian food in such restaurants, etc. Based on this study, the businessman will come up with his plans.

    b. Advertisement and Sales Promotion:

    The hindrance of information and how Advertisement is an aid to trade that removes this hindrance. The business informs potential customers about its products and how the use of such products is beneficial to them. There is lot of competition amongst various products in the market. Customers have lot of choice and therefore, advertisement is very crucial for business to influence the customer’s decision making.

    c. Sales Promotion:

    Consists of the various ways in which a business tries to increase the sales of the product. The usual methods of sales promotion are distribution of free samples, coming up with “combo” offers (for example, tooth paste with tooth brush), offering discounts (for example. Flat 30% off), cash back schemes, etc.

    d. Distribution:

    A business may have a world class product, people may be aware of the product, but if the product is not available at a point that is convenient for the customers to buy, then such business is unlikely to be profitable. Distribution is concerned with making the products available for the potential customers to buy them. The business must ensure that goods are properly and promptly supplied to all target (advertised) areas and are available for sale to potential customers whenever they wish to buy.

    e. Customer Service:

    Businesses now realize that it needs to keep its customers happy. Happy customers come back and give more business. They are also the biggest and most credible source of publicity. A happy customer encourages other persons to also buy the product he/she is happy with. An unhappy customer goes to great lengths and virtually stops potential customers from buying the product.

    Therefore, businesses are increasingly spending a lot of time in communi­cating with their customers. Many businesses offer warranty on their products. There are 24 hour customer care helplines to hear what the customers are unhappy about. Liberal return and exchange policies are offered by many businesses. All these efforts are being made to keep the customer happy and satisfied, so that there is a positive impact on the sales of the organization.

    ii. Strategy:

    One of the objectives of any business is to grow in scale and size. A business may want to take-over or merge with another business. For example, initially Tech Mahindra took over Satyam Computers and finally merged Satyam Computers into itself. Similarly, an Organization, which is a large behemoth, might want to de-merge itself and create smaller organizations by splitting the large organization.

    Business has to continually look at various strategies to attain its various objectives. This function is normally handled by senior management or by the Corporate Strategy division. This function is an External function of the business.

    Function # 3. Support:

    Support functions include all those ancillary (assisting) activities, which facilitate and ensure smooth working of both internal and external functions of business. Generally, managers of respective support teams operating within an organization handle these functions.

    The significant support functions of business are depicted below:

    i. MIS:

    Businesses take decisions on the basis of information available to them. Information needs to be accurate and timely. Thus, businesses are making significant investments in creating a Management Information System that provides its management all the relevant information in real time. Businesses now appoint a full time CIO (Chief Information Officer) to take care of this need.

    ii. Audit and Accounts:

    Accounting operations are required for recording the day-to-day transactions entered into by the business. Audit is needed to ensure that the transactions are correctly recorded as per accepted accounting principles. Audit is done by a Chartered Accountant, who belongs to an external organization. However, businesses have their internal audit departments to make sure that there are proper controls.

    iii. Administration:

    There are so many works that need to be done on a day to day basis. For example, a business needs to have a reception so that any outsider can contact the business. The reception can guide the outsider to the relevant department or person who can talk to that outsider. Phone calls need to be received. Assets need repairs and servicing.

    Electricity Bills, Telephone bills, etc. need to be paid. Refreshments are to be provided to guests (who could be important people such as Regulators, Auditors, etc. or even Customers and Suppliers) as well as to employees. The list of such activities is endless. All such activities come under the “administration” function.

    iv. Public Relations:

    While Advertisement focuses on the product and the target is the potential customer, public relations focuses on creating a positive image about the business. It is targeted at the society at large. Designated officers called PROs (Public Relation Officers) represent the business and work with customers, shareholders, media, government, and others.

    Their purpose is to create a favourable impression about the business in the eyes of various stake-holders. They frequently hold press conferences, create corporate brochures, participate in exhibitions, respond to media enquiries and also run PR campaigns.


    Foundation for a successful business enterprise – Clear-Cut Objectives, Efficient Business Planning, Sound Organisation, Financial Planning, Human Relations and More…

    The organisation and management of business involves several problems. Every business enterprise seeks to achieve the objectives of survival and growth. In modern business, it has become very difficult to achieve these objectives due to the increasing pressure of environmental forces. In order to achieve its objectives effectively and efficiently, a business enterprise must have at all times appropriate interaction with its environment. There is no short-cut to success in business.

    However, the following factors provide the foundation for a successful business enterprise:

    (i) Clear-Cut Objectives:

    The first essential of a successful enterprise is the establishment of definite and clear-objectives. In addition to the overall objectives, specific objectives should be laid down in different functional areas of business on which the survival and growth of business depends. These areas include production, marketing, financing, personnel, research and development, etc.

    The functional (secondary) objective should be in harmony with organisational (primary) objectives. Similarly, a proper balance should be created between long-term and short-term objectives. Objectives form the nucleus around which all other activities-rotate. They should be so realistic that they can be achieved.

    (ii) Efficient Business Planning:

    Planning is an essential requisite for successful operations of a business enterprise. Planning enables the enterprise to meet contingencies of the future and thereby saves it from floundering. Planning is foreseeing and charting-out a future course of action. Sound planning requires accurate forecasting of sales. Effective plans should be formulated for every department or division of the enterprise. Departmental or divisional plans should be coordinated with the overall or master plan of the enterprise as a whole.

    (iii) Proper size, Location and Layout:

    The success of a business enterprise depends to a great extent on these factors. Optimum size results in the lowest average cost of operations per unit. Appropriate location helps the enterprise in securing the required materials, labour, power, markets, etc., at minimum possible costs. Productivity depends largely on technology and the firm must have proper plant, equipment, machinery, etc.

    These facilities should be laid out in such a way that there will be optimum utilisation of all the resources. Mistakes made in the determination of size, location and layout have long term implications and may endanger the very survival of the firm.

    (iv) Sound Organisation:

    Organisation is concerned with the division of work among the employees in such a way that they work with efficiency and coordination. A sound organisation structure provides the necessary framework for effective communication, teamwork and co-ordination. In order to develop an effective organisation, it is necessary to define clearly the authority and responsibility relationships between the personnel of the enterprise. Everyone should know clearly the limit of his/her authority, extent of responsibility and the scope of the job. Besides suitable internal organisation, an appropriate form of ownership should be chosen.

    (v) Financial Planning:

    Finance is the lifeblood of business. Therefore, there should be a proper flow of finance at all times in a business enterprise. Adequate funds should be made available at the right time for long-term and short-term needs of business. There must be proper allocation and utilisation of the procured funds in different projects or investments.

    A balanced capital structure should be developed so that the cost of capital is minimised without subjecting the enterprise to undue financial risk. Accurate measurement and control of financial performance is necessary for efficient management of the finance function.

    (vi) Marketing Network:

    Production of goods and services is meaningless unless customers accept them at prices which yield reasonable profits to the enterprise. An efficient distribution network is required for this purpose. The approach to the marketing function should be customer-oriented. Product mix, pricing policy, distribution channel and techniques of sales promotion should be decided on the basis of the needs and aspirations of consumers. Marketing research plays an important role in knowing and understanding the requirements of present and prospective customers.

    (vii) Executive Development:

    The continuity and growth of a business enterprise depends upon the availability of competent executives at all times. The executive team of an enterprise is subject to constant change on account of retirement, death, resignation, etc. Arrangements should, therefore, be made for the training and development of future executives. Executive obsolescence may prove fatal to the growth of an enterprise.

    (viii) Dynamic Management:

    The efficient utilisation of resources and, therefore, the success of an organisation depends upon the calibre and philosophy of its management. Enlightened and competent management is the single most important requisite of success in modern business. Without innovation and growth, an enterprise will stagnate and decay. Therefore, management must adopt a dynamic outlook. The people working in an enterprise will give desired performance under effective leadership.

    (ix) Human Relations:

    Teamwork, a sense of belonging and high morale are the hall-marks of sound human relations in business. When relations between the members of an organisation are good, change and development become easier. In order to develop good human relations, there should be an effective two-way communication system between the management and the workers so that the grievances, suggestions and reactions of workers are known at all times. Workers should be treated as human beings and proper arrangement should be made for their welfare and all-round development.

    (x) Research and Development:

    Technology and customer satisfaction are important factors influencing the success of a business enterprise. In order to develop new and more efficient techniques and processes of production, research and development is required. Systematic and permanent facilities for research and development also enable the firm to offer new and better products to the customers. It is for these reasons that large business enterprises often have their own departments or institutes for research and development activities.


    Top 2 Types of Business Activities – Economic and Non-Economic Activities

    The spectrum/the range/or the sum total of business activities, mainly consist of two things:

    1. Economic Activities:

    They are concerned with the production, distribution and consumption of goods and services. They enable people to earn their bread and butter. Such income-generating activities could be classified into three categories.

    The categories are:

    (i) Business,

    (ii) Profession, and

    (iii) Employment.

    (i) Business:

    Economic activities are pursued with a clear intent to earn profits. These involve production and exchange of goods and services on a regular basis. Risk and uncertainty are ever-present in every business activity.

    (ii) Profession:

    It may be defined as any occupation which involves offer­ing of skills, expertise and competencies of special nature (to clients against a fee) acquired through years of education, training and hard mental labour (e.g., doctors, advocates, tax consultants, auditors etc.). It is a vocation based on expertise relating to a field. Professionals keep good contact with clients and render services by charging a fee.

    They are supposed to take care of the interests of the clients by following a code of discipline established by members belonging to a profession known as a professional body. The professional body restricts entry into profession and lays down the rules of the game to be followed by every member (e.g. The Institute of Chartered Accountants of India). Professionals, generally speaking, are guided by the service motive.

    (iii) Employment or Service:

    The term employment refers to the work done by a person (called as employee) reporting to an employer and carrying out assigned work according to the terms and conditions of a contract. The contract specifies the payment to be made in terms of salary, bonus, and other service benefits for obtaining the services of an employee. The employee is expected to complete the work that is entrusted to him on a temporary basis or on a permanent basis.

    2. Non-Economic Activities:

    These are the activities undertaken without any profit motive. There is no intent to make money. People indulge in non-economic activities out of sympathy, love, charity, patriotism, reli­gious feelings, etc.

    The spectrum of business activities is fairly wide and covers lot of ground. It includes all those activities aimed at facilitating the production and distribution of goods and services such as manufacturing, trading, warehousing, banking, insurance, packaging and transportation etc.


    3 Popular Dimensions of Business Product, Customer Segment and Value Creation 

    Another expert Derek F.Abell, in his little “The starting point of strategic planning”, expressed same views on defining business. He is of the opinion that business may be defined doing three dimensions namely. Customer groups, customer functions, and alternative technologies.

    Here, customer group-indicates as to who is to be satisfied; customer functions indicate as to what is to be satisfied; and alternative technologies speak of how the needs are to be satisfied. Thus, business house is to define its business in the contexts of three dimensions namely, the product, the customer segment, and the value creation.

    Dimension # 1. The Product:

    The organisation has to spell out clearly the product it has to offer. Precise spelling is to speak in terms of length, width and breadth. Thus company manufacturing and marketing say wrist watches should make it very clear that whether it is producing all possible watches for men and women for all purposes.

    It should specify the product features, quality range, price, distribution, after sale services and so on. The company is to think twice as to what it is specifying. This depends on the competitive advantage it enjoys in a practical aspect or aspects. If, it has competitive advantage in producing marketing solid 18 carats wrist-watches for men and women then to that extent it should make it clear.

    Dimension # 2. Customer Segment:

    It is impossible for a wise company to satisfy all customers spread over a wide geographical area. That it should make clear the customers it wants to serve and the geographical area in which it wants to operate.

    Even if it is possible, it may not be feasible under conditions of acute and changing competitive forces. It pays to serve a particular group or class of people located in a specific area. Thus, the adult diapers is meeting a particular age group and income groups those can afford to buy these diapers on medical and personal reasons.

    Dimension # 3. Value Creation:

    Value creation is the process of value adding that make the consumers that the product utility is commensurate with price a customer pays. In a buyers’ market, consumer is always in search of products that are capable of giving higher value perception. That is, the price he is saying is less than or equal to the value that he perceives.

    That is, he is glad to pay some price or higher price provided the product has high utility or high value in his or her eyes. What is the value-is purely a personal and mental faceting, the value differs from person to person and time to time. In this context, the organisation has to define clearly what value the customer considers very important.

    This value may be-reliable after sale service for Mr. X, regular delivery for Y, credit sale and door delivery in case of Z or it may be lower price for Mr. A. In that sense, the organisation should make it also clear that how, the company is going to create or add this value.

    The terminal part of the business definition is that, like strategy, business is defined at the different levels. That is, at corporate level business level and functional level. It goes without saying that a company which is engaged in only one line, this defining business is somewhat easy.

    On the contrary, in case of multi-SBUs firm, as there is more than one line, this defining the business is somewhat more difficult. What is important is, functional level definition of business becomes a part of business level and business level becomes the part of corporate level. This kind of business definition is a must so that the companies’ personnel really work hard in a particular focus that is created.


    What is Business – How to become successful in future? 

    The changing pattern of environment will necessarily require a redefining and re-focussing of the strategy of a firm. In the 80’s and the early 90’s significant contributions were made in this area by renowned experts, such as, Prahalad and Hamel. Porter and Ries and Trout. Collectively, all these thinkers do provide a perspective on how to successfully reach the future first. Hamel and Prahalad, in their path breaking book Competing/or the Future, stress the need for regenerating a strategy that goes beyond restructuring of the portfolio, downsizing of head count, re-engineering of business processes, and making continuous improvement.

    To be successful in the future, companies will have to redefine and reinvent the industry boundary in a manner that would lead to total industry trans­formation, thereby giving them significant advantages over their inward-looking rival, Hamel and Prahalad further observe that competition for the future will be the competition to create and domi­nate the emerging opportunities, To take on this competition, companies will need to develop their own strategic architecture that will provide a blueprint for building future competencies.

    The au­thors’ advice includes adoption of a new strategy paradigm that stresses transformation of the indus­try boundary, building effective coalitions between companies, development of a core competency agenda, and minimising time for global pre-emption. They also urge companies to forget and unlearn the past and do some fundamental rethinking in terms of new ways of doing business in the changed arena. To do all these, manager’ will need foresight rather than any particular sophisticated forecast­ing technique.

    Prof. Michael Porter stresses the need to make a distinction, between improving operating efficiency and shifting competitive position, in order to compete successfully in the future. While operating efficiency in producing and delivering products and services is a must, there is also a need to effect a change in a firm’s positioning through an alteration in such offerings. Such repositioning can be effected without sub-optimising the continuity in the basic position. To achieve this, compa­nies shall require skills in learning new facts rapidly and assimilating the same to get new ideas for repositioning.

    The new ideas so developed must be connected to the strategy the firm intends to pursue in the future, thereby ensuring that it is making the correct choices and also avoiding the adoption of a universal ‘me-too’ strategy. Porter has also cautioned companies not to get trapped in the pursuit of certain new strategic thoughts that art of late being propounded in order to be success­ful in the 21st century.

    Two of these traps, according to him, are:

    (i) The excessive attention being given to maximise market share, even to the point of reducing profitability; and

    (ii) The desire to minimise the time to market. Porter says that such universal strategies will not work for every industry and all companies should not pursue the same regardless of the industry characteristics.

    Prof Phillip Kotler perceives that the emerging future successful companies will need to focus either on high income consumers requiring the high quality products and personalised services, or on low income consumers who just want the basic core products with almost no services. In the new scenario, the middle income customers will form a declining segment. The high income category will be better-educated, better-travelled, better-informed and time starved, all of which implies an opportu­nity to offer value-added products and services.

    Similarly, the lower income group possesses certain characteristics which can be exploited usefully. In general, irrespective of the segment the company of the future shall concentrate upon, the key success factor will be to offer the desired value-added quality products and services at a cost lower than that offered by the competitors. This is going to be an important challenge since customers are becoming more discerning and demanding, and they will be in a position to assess the intrinsic value of a product and service offering.

    Prof. AI Ries and Prof. Jack Trout-who promoted the concept of positioning-underline the need for focus in the context of a growing market size, more media options, an expanding telecommuni­cation network, and universalisation of consumer preferences, The strategy of various companies will be to perfect everything they do-be It manufacturing, marketing, distribution or services.

    The empha­sis will be on a careful targeting of select segments, building one or two strong brands and developing a service-driven relationship with the customers. Concentrating resources on a narrow segment and using such new generation options as interactive advertising, infomercials, direct mail, the Internet, etc. to reach and communicate with the target group will be the hallmark of the 21st century strategy.

    Companies planning to attain leadership in the next century will also have to predict the future scenario more precisely (viz., in the way their respective industries are likely to move) by improving their understanding of the pattern and direction of convergence of various industries in order to create an entirely different industry. Organisations will need to track this new development and work out implications for formulating their respective strategies.

    It is thus clear from the writings of these authors that foreseeing the future well in advance rather than merely reacting to the unfolding development, will be central to managing the future successfully. Every firm has to recognise the possibility of the increasing convergence of various industries. The thrust has to be on taking initiatives in transforming the firm and redefining the industry boundary in a manner that gives it certain strategic advantages over its competitors.

    Such an effort will help in repositioning the firm in a significantly different way. Side by side, efforts to achieve operating efficiency in basic positioning and to provide high quality products and services at prices lower than that of competitors will continue to be the key components of a firm’s strategy. The sharp differences in value expectations between various customer segments-particularly those in the high income and low income categories-and proliferation of products, services, brands and media will require companies to concentrate on specific focus areas.


    What is Business – Reasons that Justify the Role of Profit in Business

    Profit is the main motive of every economic activity. As business is an economic institution, it must earn sufficient profits to cover its costs and to provide for growth.

    The following reasons justify the role of profit in business:

    1. Survival – The basic objective of any organisation is to ensure that it continues to survive and exist in the future. Survival in long rim is possible only when organisation is able to earn adequate profits.

    2. Expansion and Growth – Every business enterprise wants to expand its business. Expansion needs sufficient amount of capital. Profit acts as a source of finance to meet expansion requirements of the business.

    3. Measure of Efficiency – The efficiency and prosperity of a business is measured through the profit it earns. Higher profits indicate the efficient working of business.

    4. Reward of Risk Bearing – An entrepreneur assumes a lot of risk while carrying out business activities. Profit is considered as a reward for bearing this risk. If there is no profit in business activity, no one would like to assume risk of running business.

    5. Better Reputation and Goodwill – A profit-making company enjoys better goodwill in the market as compared to loss-making company. A company with better goodwill is able to attract and retain talented work force. It becomes easy for such a firm to raise loans and obtain credit.

    Profit maximization should not be the sole objective:

    Inspite of indispensable role of profits in business; it cannot be the sole objective of business.

    Profit maximization is an essential or the leading objective but not the sole objective due to following reasons:

    1. Corrupt Practices – Business may engage in malpractices or unfair means like hoarding, black marketing, adulteration, etc. in order to achieve the aim of profit maximization.

    2. Leads to Exploitation – A business trying to earn more and more profits may exploit workers by paying them less and low quality goods may be provided to consumers to increase the profits.

    3. Long-term interest – Too much emphasis on profit may lead to ignorance of social responsibility. It is in the long-term interest of business to pursue social responsibilities along with earning profit.

    Finally, it can be concluded that ‘profit earning through service to society’ should be the real objective of business.


    What is Business – 9 Main Diversification of Business – Related, Unrelated, Internal, External, Horizontal, Vertical, Concentric, Active and Passive Diversification

    Diversification refers to company diverting the business focus from the existing traditional areas to new promising areas. Since technology is changing day by day, ‘customer’ demands are changing accordingly. Company introduced new and substitute products and services available in the market to meet the customer’s expectations and to draw their attention.

    These changing attitudes of the customers, the company has been opening more and more new areas of promising business. Diversification may involve internal or external, related or unrelated, horizontal or vertical, active, or passive dimensions. The change of business focus may be either in terms of customers function, customer group and new alternative technologies.

    1. Related diversification

    2. Unrelated diversification

    3. Internal diversification

    4. External diversification

    5. Horizontal diversification

    6. Vertical diversification

    7. Concentric diversification

    8. Active diversification

    9. Passive diversification

    1. Related Diversification:

    Related diversification is diversification into new business activity that is linked to company’s existing business activity; normally these activities are common between one or more components of each activities of existing business activity of value chain. Normally these linkages are based on manufacturing, marketing or technological commodities.

    2. Unrelated Diversification:

    Unrelated diversification is diversification into a new business area that has no obvious connection with any of the companies’ existing areas.

    3. Internal Diversification:

    Diversification business activities within the company such is known as internal diversification. It means that a company ready to introduce new products with in the same geographical areas.

    4. External Diversification:

    External diversification involves diversification of the business activities like manufacturing, production and marketing, technological changes diversified with the other companies to save operating cost of the goods and services.

    5. Horizontal Diversification:

    Horizontal diversification is undertaken in order to increase market share by expansion of same product lines with more varieties to serve customers in different areas. Of different types and affluence levels. Horizontal diversification may be taken up to expand business geographically in new territories by taking up an increased market share and an improved business volume.

    6. Vertical Diversification:

    Vertical diversification means diversification into a new production line to produce items required as inputs for other main products of the same company.

    7. Concentric Diversification:

    Concentric diversification is to concentrate the direction of business for expansion and diversification is to concentrate the direction in the same and attendant product lines. Concentric diversification may take the form of marketing – related or technology – related diversification.

    Active diversification is the long-term expansion of the business activities. Passive diversification is short termed and has negative impact to continuous long-term contracts with partners.


    What is Business – Business Ethics

    This aspect needs particular attention, especially in rural marketing field, as the trust which is a new buzzword in marketing literature, has been at the heart of all transactions whether cash or kind. Therefore, to make a lasting impact on the rural clients, the firms need to build trustful relationships which can be done by no other means but ethical conduct. The gains from such attitude and behaviour in rural markets can be quite significant.

    Partnership for Sustainability:

    Finally, there is need to build partnership with rural clients for a sustainable business relationship and sustainable marketing performance. As it is happening in business marketing, there should be a definite long-term alliances between firms and farmers for agrobusiness projects which are risky, long drawn, and technical in nature.

    This would help farmers become viable users of the inputs and services provided by the firms. It should be regarded as an investment for the future market. In the presence of farming becoming highly unattractive to the rural people, there is need to work on these lines so that the business of farming goes on which will be crucial for the input markets to remain and grow.

    Some of the entry points for this partnership could be-awarding company product distributorship to local groups and individuals, employing locals, staff secondment in local projects, preferential purchase of local products, training to locals and discount on product supplies in some areas. Working with local NGOs can also be a useful strategy for input firms as NGOs have better linkages and understanding of the local communities and their problems.

    Excel Industries Ltd., a chemical and bio-plant protection products company, has embarked upon an integration of agricultural input marketing with agro-output marketing under which it helps farmers fetch a better price for their crops like cardamom, cloves, chillies, pepper, cotton and basmati rice.

    Similarly, Nagarjuna Fertilisers and Chemicals Ltd. has set up an agro-output business division under which Farm Management Service (FMS) is provided to farmers and a package right from soil testing to post-harvest stage of the crop system.

    The FMS aims at enhancing farm productivity, optimising cost of production, improving economic returns to farmers and enhancing produce cost of production, improving economic returns to farmers and enhancing produce quality.

    It focuses on Integrated Pest Management (IPM). Under this scheme, already 6,000 farmers from 350 villages in crops like cotton, maize, soya, paddy, sugarcane, chillies, sunflower, mango, turmeric and grapes have been involved.

    Another case of going beyond mere marketing of inputs is that of the Gujarat Narmada Valley Fertiliser (GNFC). Its community service programme in Gujarat, is case of larger social responsibility for development as part of business activity wherein it has a set up school, hospitals, colleges, community centres and water supplies for local communities.


    What is Business – Challenges that A Business Faces due to Government’s Policy Changes (Impact of Government Policy Changes on Business)

    The government’s policy of liberalization, privatization and globalization on one hand has made a significant impact on the working of enterprises but on the other hand created various challenges for businesses and industries.

    Let us discuss the challenges a business or an industry faces due to government’s policy changes:

    1. Increasing Competition:

    Liberalization has increased the number of private firms and disinvestment has invited many foreign companies especially in service industries like telecom­munications, airlines, banking, insurance, etc. giving rise to increased competition for existing business firms.

    2. More Demanding Customers:

    With globalization and increased competition, consumers of today are well informed and have wider choices while purchasing goods and services. As a result, customers demand better quality products at reasonable prices.

    3. Rapidly Changing Technological Environment:

    Fast changing technology requires companies to improve their machinery, adopt latest methods and processes to produce goods of better quality. It is relatively easy for big companies to accept and adopt changes but it creates tough challenges before smaller firms as it may require huge investments.

    4. Necessity for Change:

    The change in industrial policies has led to a turbulence in the market forces which has forced business enterprises to constantly modify their policies and practices. It is a must for enterprises to invest money in research and development to update their products.

    5. Need for Developing Human Resource:

    The new market conditions and ever changing technology requires business enterprises to use machinery with latest technology. This requires personnel with appropriate training, competence and commitment. Therefore, there is a need for business enterprises to develop and train human resources.

    6. Market Orientation:

    In earlier times business enterprises worked on the basis of production oriented marketing operations. They sold the products they produced but with ever changing demands of consumers’ business enterprises had to shift from product oriented to market oriented. They need to study the market and its needs before deciding what to produce.

    7. Loss of Budgetary Support to the Public Sector:

    With introduction of privatization, there is a shift from public sector to private sector. There is decline in financial support to public sectors. As a result, public sector enterprises need to be efficient and generate their own resources to compete with private enterprises.

    From the above discussion though it seems that changing government policies has created many challenges for business enterprises but at the same time it has opened many new avenues for business development and growth. The business enterprises have become more sensitive towards consumers, they produce goods as per market demand, take utmost care for quality and adopt measures to improve customer relationship and satisfaction.


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    Business is the practice of making one’s living or making money by producing or buying and selling products (such as goods and services).[1][2][3][4] It is also «any activity or enterprise entered into for profit.»[5]

    Having a business name does not separate the business entity from the owner, which means that the owner of the business is responsible and liable for debts incurred by the business. If the business acquires debts, the creditors can go after the owner’s personal possessions.[6] A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business.

    The term is also often used colloquially (but not by lawyers or by public officials) to refer to a company, such as a corporation or cooperative.

    Corporations, in contrast with sole proprietors and partnerships, are a separate legal entity and provide limited liability for their owners/members, as well as being subject to corporate tax rates. A corporation is more complicated and expensive to set up, but offers more protection and benefits for the owners/members.

    Forms

    Forms of business ownership vary by jurisdiction, but several common entities exist:

    • A sole proprietorship, also known as a sole trader, is owned by one person and operates for their benefit. The owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, whether from operating costs or judgments against the business. All assets of the business belong to a sole proprietor, including, for example, a computer infrastructure, any inventory, manufacturing equipment, or retail fixtures, as well as any real property owned by the sole proprietor.
    • A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business. The three most prevalent types of for-profit partnerships are general partnerships, limited partnerships, and limited liability partnerships.[7]
    • Corporations’ owners have limited liability and the business has a separate legal personality from its owners. Corporations can be either government-owned or privately owned, and they can organize either for profit or as nonprofit organizations. A privately owned, for-profit corporation is owned by its shareholders, who elect a board of directors to direct the corporation and hire its managerial staff. A privately owned, for-profit corporation can be either privately held by a small group of individuals, or publicly held, with publicly traded shares listed on a stock exchange.
    • A cooperative or co-op is a limited-liability business that can organize as for-profit or not-for-profit. A cooperative differs from a corporation in that it has members, not shareholders, and they share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives. Cooperatives are fundamental to the ideology of economic democracy.
    • Limited liability companies (LLC) and other specific types of business organization protect their owners or shareholders from business failure by doing business under a separate legal entity with certain legal protections. In contrast, a general partnership or persons working on their own are usually not as protected.[8]
    • A franchise is a system in which entrepreneurs purchase the rights to open and run a business from a larger corporation.[9] Franchising in the United States is widespread and is a major economic powerhouse. One out of twelve retail businesses in the United States are franchised and 8 million people are employed in a franchised business.[10]
    • Company limited by guarantee is commonly used where companies are formed for non-commercial purposes, such as clubs or charities. The members guarantee the payment of certain (usually nominal) amounts if the company goes into insolvent liquidation, but otherwise, they have no economic rights in relation to the company. This type of company is common in England. A company limited by guarantee may be with or without having share capital.
    • A company limited by shares is the most common form of the company used for business ventures. Specifically, a limited company is a «company in which the liability of each shareholder is limited to the amount individually invested» with corporations being «the most common example of a limited company.»[11] This type of company is common in England and many English-speaking countries. A company limited by shares may be a
      • publicly traded company or a
      • privately held company.
    • A company limited by guarantee with a share capital is a hybrid entity, usually used where the company is formed for non-commercial purposes, but the activities of the company are partly funded by investors who expect a return. This type of company may no longer be formed in the UK, although provisions still exist in law for them to exist.[12]
    • An unlimited company with or without a share capital is a hybrid entity, a company where the liability of members or shareholders for the debts (if any) of the company are not limited. In this case, the doctrine of a veil of incorporation does not apply.

    Less common types of companies are:

    • Most corporations by letters patent are corporations sole and not companies as the term is commonly understood today.
    • Charter corporations were the only types of companies before the passing of modern companies legislation. Now they are relatively rare, except for very old companies that still survive (of which there are still many, particularly many British banks), or modern societies that fulfill a quasi-regulatory function (for example, the Bank of England is a corporation formed by a modern charter).
    • Statutory companies are certain companies that have been formed by a private statute passed in the relevant jurisdiction, and are relatively rare today.

    «Ltd after the company’s name signifies limited company, and PLC (public limited company) indicates that its shares are widely held.»[13]

    In legal parlance, the owners of a company are normally referred to as the «members». In a company limited or unlimited by shares (formed or incorporated with a share capital), this will be the shareholders. In a company limited by guarantee, this will be the guarantors. Some offshore jurisdictions have created special forms of offshore company in a bid to attract business for their jurisdictions. Examples include «segregated portfolio companies» and restricted purpose companies.

    There are, however, many, many sub-categories of types of company that can be formed in various jurisdictions in the world.

    Companies are also sometimes distinguished into public companies and private companies for legal and regulatory purposes. Public companies are companies whose shares can be publicly traded, often (although not always) on a stock exchange which imposes listing requirements/Listing Rules as to the issued shares, the trading of shares and a future issue of shares to help bolster the reputation of the exchange or particular market of exchange. Private companies do not have publicly traded shares, and often contain restrictions on transfers of shares. In some jurisdictions, private companies have maximum numbers of shareholders.

    A parent company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors; the second company being deemed as a subsidiary of the parent company. The definition of a parent company differs by jurisdiction, with the definition normally being defined by way of laws dealing with companies in that jurisdiction.

    Classifications

    • Agriculture, such as the domestication of fish, animals, and livestock, as well as lumber, oil, vegetables, fruits, etc.
    • Mining businesses that extract natural resources and raw materials, such as wood, petroleum, natural gas, ores, metals or minerals.
    • Service businesses offer intangible goods or services and typically charge for labor or other services provided to government, to consumers, or to other businesses. Interior decorators, beauticians, hair stylists, make-up artists, tanning salons, laundromats, dry cleaners, and pest controllers are service businesses.
      • Financial services businesses include banks, brokerage firms, credit unions, credit cards, insurance companies, asset and investment companies such as private-equity firms, private-equity funds, real estate investment trusts, sovereign wealth funds, pension funds, mutual funds, index funds, hedge funds, stock exchanges, and other companies that generate profits through investment and management of capital.
      • Transportation businesses such as railways, airlines, and shipping companies deliver goods and individuals to their destinations for a fee.
      • Utilities produce public services such as water, electricity, waste management or sewage treatment. These industries are usually operated under the charge of a public government.
    • Entertainment companies and mass media agencies generate profits primarily from the sale of intellectual property. They include film studios and production houses, mass media companies such as cable television networks, online digital media agencies, talent agencies, mobile media outlets, newspapers, book and magazine publishing houses.
      • Sports organizations are involved in producing, facilitating, promoting, or organizing any activity, experience, or business enterprise focused on sports. They make their profits by selling goods and services that are sports related.
    • Industrial manufacturers produce products, either from raw materials or from component parts, then export the finished products at a profit. They include tangible goods such as cars, buses, medical devices, glass, or aircraft.
    • Real estate businesses sell, invest, construct and develop properties, including land, residential homes, and other buildings.
    • Retailers, wholesalers, and distributors act as middlemen and get goods produced by manufacturers to the intended consumers; they make their profits by marking up their prices. Most stores and catalog companies are distributors or retailers.

    Activities

    Accounting

    Accounting is the measurement, processing, and communication of financial information about economic entities[14][15] such as businesses and corporations. The modern field was established by the Italian mathematician Luca Pacioli in 1494.[16] Accounting, which has been called the «language of business»,[17] measures the results of an organization’s economic activities and conveys this information to a variety of users, including investors, creditors, management, and regulators.[18] Practitioners of accounting are known as accountants. The terms «accounting» and «financial reporting» are often used as synonyms.

    Commerce

    The process of exchanging goods and services.[19]

    Finance

    Finance is a field that deals with the study of money and investments. It includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risk.[20]
    In the context of business and management, finance deals with the problems of ensuring that the firm can safely and profitably carry out its operational and financial objectives; i.e. that it: (1) has sufficient cash flow for ongoing and upcoming operational expenses, and (2) can service both maturing short-term debt repayments, and scheduled long-term debt payments.
    Finance also deals with the long term objective of maximizing the value of the business, while also balancing risk and profitability; this includes the interrelated questions of (1) capital investment, which businesses and projects to invest in; (2) capital structure, deciding on the mix of funding to be used; and (3) dividend policy, what to do with «excess» capital.

    Human Resources

    HUMAN RESOURCES.png

    Human Resources can be defined as division of business that involves finding, screening, recruiting, and training job applicants.[21] Human Resources, or HR, is crucial for all businesses to succeed as it helps companies adjust to a fast-moving business environment and the increasing demand for jobs.[21]

    The term «human resource» was first coined by John R. Commons in his novel The Distribution of Wealth. HR departments are relatively new as they began developing in the late 20th century. HR departments main goal is to maximize employee productivity and protecting the company from any issues that may arise in the future. Some of the most common activities conducted by those working in HR include increasing innovation and creativity within a company, applying new approaches to work projects, and efficient training and communication with employees.

    Two of the most popular subdivisions of HR are Human Resource Management,[22] HRM, and Human Resource Information Systems, [23]or HRIS. The HRM route is for those who prefer an administrative role as it involves oversight of the entirety of the company. HRIS involves the storage and organization of employee data including full names, addresses, means of contact, and anything else required by that certain company.

    Some careers of those involved in the Human Resource field include enrollment specialists, HR analyst, recruiter, employment relations manager, etc.

    Manufacturing

    Manufacturing is the production of merchandise for use or sale using labour and machines, tools, chemical and biological processing, or formulation. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale.

    Marketing

    Marketing is defined by the American Marketing Association as «the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.»[24] The term developed from the original meaning which referred literally to going to a market to buy or sell goods or services. Marketing tactics include advertising as well as determining product pricing.

    With the rise in technology, marketing is further divided into a class called digital marketing. It is marketing products and services using digital technologies.

    Research and development

    Research and development refer to activities in connection with corporate or government innovation.[25] Research and development constitute the first stage of development of a potential new service or product.[26] Research and development are very difficult to manage since the defining feature of the research is that the researchers do not know in advance exactly how to accomplish the desired result.[26]

    Safety

    Injuries cost businesses billions of dollars annually.[27] Studies have shown how company acceptance and implementation of comprehensive safety and health management systems reduce incidents, insurance costs, and workers’ compensation claims.[28] New technologies, like wearable safety devices[29] and available online safety training, continue to be developed to encourage employers to invest in protection beyond the «canary in the coal mine» and reduce the cost to businesses of protecting their employees.

    Sales

    Sales are activity related to selling or the number of goods or services sold in a given time period. Sales are often integrated with all lines of business and are key to a companies’ success.[30]

    Management

    The efficient and effective operation of a business, and study of this subject, is called management. The major branches of management are financial management, marketing management, human resource management, strategic management, production management, operations management, service management, and information technology management. [31]

    Owners may manage their businesses themselves, or employ managers to do so for them. Whether they are owners or employees, managers administer three primary components of the business’s value: financial resources, capital (tangible resources), and human resources. These resources are administered in at least six functional areas: legal contracting, manufacturing or service production, marketing, accounting, financing, and human resources.[citation needed]

    Restructuring state enterprises

    In recent decades, states modeled some of their assets and enterprises after business enterprises. In 2003, for example, China modeled 80% of its state-owned enterprises on a company-type management system.[32] Many state institutions and enterprises in China and Russia have transformed into joint-stock companies, with part of their shares being listed on public stock markets.

    Business process management

    Business process management (BPM) is a holistic management approach focused on aligning all aspects of an organization with the wants and needs of clients. BPM attempts to improve processes continuously. It can, therefore, be described as a «process optimization process». It is argued that BPM enables organizations to be more efficient, effective and capable of change than a functionally focused, traditional hierarchical management approach.[who?]

    Organization and regulation

    Time required to start a business in 2017[33]

    Most legal jurisdictions specify the forms of ownership that a business can take, creating a body of commercial law for each type.

    The major factors affecting how a business is organized are usually:

    • The size and scope of the business firm and its structure, management, and ownership, broadly analyzed in the theory of the firm. Generally, a smaller business is more flexible, while larger businesses, or those with wider ownership or more formal structures, will usually tend to be organized as corporations or (less often) partnerships. In addition, a business that wishes to raise money on a stock market or to be owned by a wide range of people will often be required to adopt a specific legal form to do so.
    • The sector and country. Private profit-making businesses are different from government-owned bodies. In some countries, certain businesses are legally obliged to be organized in certain ways.
    • Tax advantages. Different structures are treated differently in tax law and may have advantages for this reason.
    • Disclosure and compliance requirements. Different business structures may be required to make less or more information public (or report it to relevant authorities) and may be bound to comply with different rules and regulations.
    • Control and coordination requirements. In function of the risk and complexity of the tasks to organize, a business is organized through a set of formal and informal mechanisms.[34][35] In particular, contractual and relational governance can help mitigate opportunism as well as support communication and information sharing.[35]

    Many businesses are operated through a separate entity such as a corporation or a partnership (either formed with or without limited liability). Most legal jurisdictions allow people to organize such an entity by filing certain charter documents with the relevant Secretary of State or equivalent and complying with certain other ongoing obligations. The relationships and legal rights of shareholders, limited partners, or members are governed partly by the charter documents and partly by the law of the jurisdiction where the entity is organized. Generally speaking, shareholders in a corporation, limited partners in a limited partnership, and members in a limited liability company are shielded from personal liability for the debts and obligations of the entity, which is legally treated as a separate «person». This means that unless there is misconduct, the owner’s own possessions are strongly protected in law if the business does not succeed.

    Where two or more individuals own a business together but have failed to organize a more specialized form of vehicle, they will be treated as a general partnership. The terms of a partnership are partly governed by a partnership agreement if one is created, and partly by the law of the jurisdiction where the partnership is located. No paperwork or filing is necessary to create a partnership, and without an agreement, the relationships and legal rights of the partners will be entirely governed by the law of the jurisdiction where the partnership is located. A single person who owns and runs a business is commonly known as a sole proprietor, whether that person owns it directly or through a formally organized entity. Depending on the business needs, an adviser can decide what kind is proprietorship will be most suitable.

    A few relevant factors to consider in deciding how to operate a business include:

    1. General partners in a partnership (other than a limited liability partnership), plus anyone who personally owns and operates a business without creating a separate legal entity, are personally liable for the debts and obligations of the business.
    2. Generally, corporations are required to pay tax just like «real» people. In some tax systems, this can give rise to so-called double taxation, because first the corporation pays tax on the profit, and then when the corporation distributes its profits to its owners, individuals have to include dividends in their income when they complete their personal tax returns, at which point a second layer of income tax is imposed.
    3. In most countries, there are laws that treat small corporations differently from large ones. They may be exempt from certain legal filing requirements or labor laws, have simplified procedures in specialized areas, and have simplified, advantageous, or slightly different tax treatment.
    4. «Going public» through a process known as an initial public offering (IPO) means that part of the business will be owned by members of the public. This requires the organization as a distinct entity, to disclose information to the public, and adhering to a tighter set of laws and procedures. Most public entities are corporations that have sold shares, but increasingly there are also public LLC’s that sell units (sometimes also called shares), and other more exotic entities as well, such as, for example, real estate investment trusts in the US, and unit trusts in the UK. A general partnership cannot «go public».

    Commercial law

    A very detailed and well-established body of rules that evolved over a very long period of time applies to commercial transactions. The need to regulate trade and commerce and resolve business disputes helped shape the creation of law and courts. The Code of Hammurabi dates back to about 1772 BC for example and contains provisions that relate, among other matters, to shipping costs and dealings between merchants and brokers.[36] The word «corporation» derives from the Latin corpus, meaning body, and the Maurya Empire in Iron-Age India accorded legal rights to business entities.[37]

    In many countries, it is difficult to compile all the laws that can affect a business into a single reference source. Laws can govern the treatment of labour and employee relations, worker protection and safety, discrimination on the basis of age, gender, disability, race, and in some jurisdictions, sexual orientation, and the minimum wage, as well as unions, worker compensation, and working hours and leave.

    Some specialized businesses may also require licenses, either due to laws governing entry into certain trades, occupations or professions, that require special education or to raise revenue for local governments. Professions that require special licenses include law, medicine, piloting aircraft, selling liquor, radio broadcasting, selling investment securities, selling used cars, and roofing. Local jurisdictions may also require special licenses and taxes just to operate a business.

    Some businesses are subject to ongoing special regulation, for example, public utilities, investment securities, banking, insurance, broadcasting, aviation, and health care providers. Environmental regulations are also very complex and can affect many businesses.

    Capital

    When businesses need to raise money (called capital), they sometimes offer securities for sale.[38]

    Capital may be raised through private means, by an initial public offering or IPO on a stock exchange,[39] or in other ways.[38]

    Major stock exchanges include the Shanghai Stock Exchange, Singapore Exchange, Hong Kong Stock Exchange, New York Stock Exchange and NASDAQ (the USA), the London Stock Exchange (UK), the Tokyo Stock Exchange (Japan), and Bombay Stock Exchange (India). Most countries with capital markets have at least one.

    Businesses that have gone public are subject to regulations concerning their internal governance, such as how executive officers’ compensation is determined, and when and how information is disclosed to shareholders and to the public. In the United States, these regulations are primarily implemented and enforced by the United States Securities and Exchange Commission (SEC). Other western nations have comparable regulatory bodies. The regulations are implemented and enforced by the China Securities Regulation Commission (CSRC) in China. In Singapore, the regulatory authority is the Monetary Authority of Singapore (MAS), and in Hong Kong, it is the Securities and Futures Commission (SFC).

    The proliferation and increasing complexity of the laws governing business have forced increasing specialization in corporate law. It is not unheard of for certain kinds of corporate transactions to require a team of five to ten attorneys due to sprawling regulation. Commercial law spans general corporate law, employment and labor law, health-care law, securities law, mergers and acquisitions, tax law, employee benefit plans, food and drug regulation, intellectual property law on copyrights, patents, trademarks, telecommunications law, and financing.

    Other types of capital sourcing include crowdsourcing on the Internet, venture capital, bank loans, and debentures.

    Intellectual property

    Businesses often have important «intellectual property» that needs protection from competitors for the company to stay profitable. This could require patents, copyrights, trademarks, or preservation of trade secrets.[40] Most businesses have names, logos, and similar branding techniques that could benefit from trademarking. Patents and copyrights in the United States are largely governed by federal law, while trade secrets and trademarking are mostly a matter of state law. Because of the nature of intellectual property, a business needs protection in every jurisdiction in which they are concerned about competitors. Many countries are signatories to international treaties concerning intellectual property, and thus companies registered in these countries are subject to national laws bound by these treaties. In order to protect trade secrets, companies may require employees to sign noncompete clauses which will impose limitations on an employee’s interactions with stakeholders, and competitors.

    Trade union

    A trade union (or labor union) is an organization of workers who have come together to achieve common goals such as protecting the integrity of its trade, improving safety standards, achieving higher pay and benefits such as health care and retirement, increasing the number of employees an employer assigns to complete the work, and better working conditions.[41] The trade union, through its leadership, bargains with the employer on behalf of union members (rank and file members) and negotiates labor contracts (collective bargaining) with employers.[41] The most common purpose of these associations or unions is «maintaining or improving the conditions of their employment».[42] This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing, and promotion of workers, benefits, workplace safety and policies.

    See also

    • Accounting
      • List of accounting topics
    • Advertising
    • Bank
    • Big business
    • Business acumen
    • Business broker
    • Business ethics
      • Social responsibility
    • Business hours
    • Business law topics
    • Business mathematics
    • Business mediator
    • Business school
    • Business tourism
    • Business valuation
    • Businessperson
    • Capitalism
    • Change management analyst
    • Commerce
    • Company
    • Corporate personhood
    • Cost overrun
    • E-commerce
      • Electronic business
    • Economics
      • Economic democracy
      • Financial economics
      • List of economics topics
    • Entrepreneurship
    • Finance
      • List of finance topics
    • Franchising
    • Government ownership
    • Human resources
    • Industry categories
    • Innovation
    • Insurance
    • Intellectual property
    • Interim management
    • International trade
      • List of international trade topics
    • Investment
    • Job creation program
    • Labour economics
    • Limited liability
    • List of company registers
    • List of largest employers
    • List of oldest companies
    • Lists of companies
    • Management information system
    • Manufacturing
      • List of production topics
    • Marketing
      • List of marketing topics
    • Money
    • Organizational studies
    • Profit
    • Real estate
      • List of real estate topics
    • Revenue shortfall
    • Shareholder value
    • Small business
    • Strategic management
    • Strategic planning
    • Tax
    • Trade
    • Types of business entity

    References

    1. ^ American Heritage Dictionary. Archived from the original on March 31, 2019. business [:] 1. The activity of buying and selling commodities, products, or services.
    2. ^ Longman Business English Dictionary (2nd ed.). Pearson Longman. 2007. ISBN 9781405852593. OCLC 954137383.
    3. ^ Longman Dictionary of Contemporary English. Archived from the original on July 9, 2019. business [:] 1 […] the activity of making money by producing or buying and selling goods, or providing services.
    4. ^ Oxford Living Dictionaries. Archived from the original on May 1, 2019. business [:] 2 The practice of making one’s living by engaging in commerce.
    5. ^ Burton, William (2007). Burton’s Legal Thesaurus (4th ed.). McGraw-Hill Education. p. 68. ISBN 9780071472623. OCLC 70864526.
    6. ^ «Definition of POSSESSION». www.merriam-webster.com. Retrieved 2022-11-20.
    7. ^ Holloway, S. S.; Parmigiani, A. (2014). «Friends and Profits Don’t Mix: The Performance Implications of Repeated Partnerships». Academy of Management Journal. 59 (2): 460. doi:10.5465/amj.2013.0581. S2CID 168091169.
    8. ^ «Choose a business structure». Small Business Administration. Archived from the original on 2020-10-30. Retrieved 2021-05-13.
    9. ^ Gleeson, Patrick. «Definition of a Franchise Business». Small Business — Chron.com. Archived from the original on 2016-11-26. Retrieved 2016-11-25.
    10. ^ Welsh, Dianne H. B.; Desplaces, David E.; Davis, fAmy E. (2011). «A Comparison of Retail Franchises, Independent Businesses, and Purchased Existing Independent Business Startups: Lessons from the Kauffman Firm Survey». Journal of Marketing Channels. 18: 3. doi:10.1080/1046669X.2011.533109. S2CID 154304180.
    11. ^ Black’s Law and lee Dictionary. Second Pocket Edition. Bryan A. Garner, editor. West. 2001.
    12. ^ Companies Act 2006
    13. ^ Hargrave, Marshall. «What Public Limited Company (PLC) Means in the U.K.» Investopedia. Archived from the original on 2018-07-06. Retrieved 2018-07-06.
    14. ^ Needles, Belverd E.; Powers, Marian (2013). Principles of Financial Accounting. Financial Accounting Series (12 ed.). Cengage Learning.
    15. ^ Accounting Research Bulletins No. 7 Reports of Committee on Terminology (Report). Committee on Accounting Procedure, American Institute of Accountants. November 1940. Archived from the original on 7 January 2014. Retrieved 31 December 2013.
    16. ^ DIWAN, Jaswith. ACCOUNTING CONCEPTS & THEORIES. LONDON: MORRE. pp. 001–002. id# 94452.
    17. ^ Peggy Bishop Lane on Why Accounting Is the Language of Business, Knowledge @ Wharton High School, September 23, 2013, archived from the original on 13 June 2018, retrieved 25 December 2013
    18. ^ «Department of Accounting». Foster School of Business. Foster School of Business. 2013. Archived from the original on 19 March 2015. Retrieved 31 December 2013.
    19. ^ «Commerce». Oxford English Dictionary (Online ed.). Oxford University Press. (Subscription or participating institution membership required.)
    20. ^ CFI. «What is Finance?». Archived from the original on 7 April 2020. Retrieved 7 April 2020.
    21. ^ a b «Human Resources (HR) Meaning and Responsibilities». Investopedia. Retrieved 2022-11-29.
    22. ^ «What is HR (Human Resource Management)?». TheBalance. Retrieved 2022-11-29.
    23. ^ «What is an HRIS (Human Resource Information System)?». SearchHRSoftware. Retrieved 2022-11-29.
    24. ^ Marketing definition approved in October 2007 by the American Marketing Association: [1] Archived 2010-12-27 at the Wayback Machine.
    25. ^ Kenton, Will. «Why Research and Development (R&D) Matters». Investopedia. Archived from the original on 2018-07-10. Retrieved 2020-06-12.
    26. ^ a b «Research and development». Encyclopedia Britannica. Archived from the original on 2020-10-03. Retrieved 2020-06-12.
    27. ^ Leigh, J. (2011). Economic Burden of Occupational Injury and Illness in the United States. Milbank Quarterly, 89(4), 728-772. doi:10.1111/j.1468-0009.2011.00648.x
    28. ^ Rowe, Kelly P. (2007). OSHA and small businesses: A winning combination: When small businesses tap into OSHA’s many resources, everyone benefits. Occupational Hazards, 69(3), 33.
    29. ^ Goldberg, S. (2016). Business Technical: Wearable Devices at Work. Business Insurance, 50(2), 1.
    30. ^ «How To Organize Your Marketing Department In The Digital Age». Archived from the original on April 26, 2018. Retrieved October 15, 2018.
    31. ^ «What Are the Branches of Business Management?». business.com. Retrieved 2022-11-26.
    32. ^ Major Industries Archived 2008-06-11 at the Wayback Machine. People.com
    33. ^ «Time required to start a business». Our World in Data. Archived from the original on 23 November 2020. Retrieved 7 March 2020.
    34. ^ Poppo, Laura; Zenger, Todd (2002). «Do formal contracts and relational governance function as substitutes or complements?». Strategic Management Journal. 23 (8): 707–725. doi:10.1002/smj.249. ISSN 1097-0266. Archived from the original on 2021-03-08. Retrieved 2020-09-05.
    35. ^ a b Long, Chris P.; Sitkin, Sim B. (2018). «Control–Trust Dynamics in Organizations: Identifying Shared Perspectives and Charting Conceptual Fault Lines». Academy of Management Annals. 12 (2): 725–751. doi:10.5465/annals.2016.0055. ISSN 1941-6520. S2CID 150017645. Archived from the original on 2022-03-03. Retrieved 2020-09-05.
    36. ^ «Law Code of Hammurabi». Archived from the original on 2013-10-19. Retrieved 2013-10-18.
    37. ^ Vikramaditya S. Khanna. «The Economic History of the Corporate Form in Ancient India» (PDF). Archived from the original (PDF) on 2013-10-19.
    38. ^ a b Hargrave, Marshall. «What Is Capital?». Investopedia. Archived from the original on 11 August 2021. Retrieved 21 January 2021.
    39. ^ «What is Ipo? Definition of Ipo, Ipo Meaning». The Economic Times. Archived from the original on 10 August 2021. Retrieved 21 January 2021.
    40. ^ «What is Intellectual Property (IP)?». www.wipo.int. Archived from the original on 22 January 2021. Retrieved 21 January 2021.
    41. ^ a b «What is Trade Union? Definition of Trade Union, Trade Union Meaning». The Economic Times. Archived from the original on 1 February 2021. Retrieved 21 January 2021.
    42. ^ Webb, Sidney; Webb, Beatrice (1920). History of Trade Unionism. Longmans and Co. London. ch. I

    External links

    Business is a
    word which is commonly used in many different languages. But exactly
    what does it mean? The concepts and activities of business have
    increased in modern times. Traditionally, business simply meant
    exchange or trade for things people wanted or needed. Today it has a
    more technical definition.

    One
    definition of business is the production, distribution, and sale of
    goods and services for a profit. To examine this definition, we will
    look at its various parts.

    First,
    production is the creation of services or the changing of materials
    into products. One example is the conversion of iron ore into metal
    car parts. Next these products need to be moved from the factory to
    the marketplace. This is known as distribution. A car might be moved
    from a factory in Detroit to а
    car dealership in Miami.

    Third is the
    sale of goods and services. Sale is the exchange of a product or
    service for money. A car is sold to someone in exchange for money.
    Goods are products which people either need or want; for example,
    cars can be classified as goods. Services, on the other hand, are
    activities which a person or group performs for another person or
    organisation. For instance, an auto-mechanic performs a service when
    he repairs a car. A doctor also performs a service by taking care of
    people when they are sick.

    Business then,
    is a combination of all these activities: production, distribution,
    and sale. However, there is one other important factor. This factor
    is the creation of profit or economic surplus. A major goal in the
    functioning of an American business company is making a profit.
    Profit is the money that remains after all the expenses are paid.
    Creating an economic surplus or profit is, therefore, a primary goal
    of business activity.

    Translation

    Что такое бизнес?

    Бизнес
    — слово, которое обычно используется на
    многих различных языках. Но что это
    точно означает? Понятия и действия
    бизнеса увеличились в современные
    времена. Традиционно, бизнес просто
    означал обмен или торговлю вещами,
    которые были желанны или необходимы
    людям. Сегодня для этого есть более
    техническое определение.

    Одно
    определение бизнеса — производство,
    распределение и продажа товаров и услуг
    для прибыли. Чтобы исследовать это
    определение, мы будем смотреть на его
    различные части.

    Во-первых,
    производство — создание услуг или
    изменение материалов в продуктах. Один
    пример — преобразование железной руды
    в металлические автозапчасти. Затем
    эти продукты должны быть перемещены с
    фабрики на рынок. Это известно как
    распределение. Автомобиль должен быть
    перемещен из фабрики в Детройте в
    автомобильное представительство в
    Майами.

    Третье
    — продажа товаров и услуг. Продажа — обмен
    продуктов или обслуживания на деньги.
    Автомобиль продан кому-то в обмен на
    деньги. Товары — продукты, в которых люди
    или нуждаются или хотят; например,
    автомобили могут быть классифицированы
    как товары. Услуги, с другой стороны,
    являются действиями, которые человек
    или группа выполняют для другого человека
    или организации. Например, автомеханик
    выполняет обслуживание, когда он
    ремонтирует автомобиль. Доктор также
    выполняет обслуживание, заботясь о
    людях, когда они больны.

    Бизнес
    тогда, это комбинация всех этих действий:
    производство, распределение, и продажа.
    Однако есть один другой важный фактор.
    Этот фактор — создание прибыли или
    экономического излишка. Главная цель
    в функционировании американской деловой
    компании получать прибыль. Прибыль —
    деньги, которые остаются после того,
    как все расходы заплачены. Создание
    экономических излишков или прибыли
    является, следовательно, основной целью
    коммерческой деятельности

    COMPREHENSION

    A.
    Answer the following questions about the meaning of business. The
    questions which are starred (*) cannot be answered directly from the
    text. Space is provided at the end for you to add your own questions.

    1. What is one
      modern definition of business?

    Business
    is the production, distribution, and sale of goods and services for a
    profit.

    2.
    *How does this modern meaning of business differ from the traditional
    one? *What factors have brought about these changes?

    Traditionally,
    business simply meant exchange or trade for things people wanted or
    needed. In modern definition profit reception is target of business.
    Development manufactory, industrial production, development of trade
    relations, change of principles of economic policy are factors which
    brought about these changes.

    3.
    What does production involve?

    Production
    involves creation of services or the changing of materials into
    products

    4. What
    example of distribution is given in the reading? Can you think of
    another example from real life?

    A
    car might be moved from a factory in Detroit to a car dealership in
    Miami. Sugar might be moved from a plant in Skidel to a shop in
    Minsk.

    5.
    How do goods differ from services?

    Goods
    are products which people either need or want; for example, cars can
    be classified as goods. Services, on the other hand, are activities
    which a person or group performs for another person or organization.

    6.
    In addition to production, distribution, and sale, what other factor
    is important in defining business?

    This
    factor is the creation of profit or economic surplus

    7.
    What is profit? *In general, what do companies do with their profits?

    Profit
    is the money that remains after all the expenses are paid

    8.
    Compare your definition of business with the one given in the
    reading. *How are they similar? *In what ways does your definition
    differ from the one presented in the text?

    9.
    Additional questions____________________

    B.
    Determine which of the following statements true and which are false.
    Then put T or F in the blanks. Correct those statements which are
    false by rewriting them.

      1. Additional
        questions

    1. Bring
      examples of the goods and examples of services.

    2. What
      is the distribution?

    3. What
      is the largest manufactures in your city?

    4. Distribution
      is included in definition of business, isn’t it?

    5. What
      is meant services?

    1. Determine
      which of the following statements true and which are false. Then put
      T or F in the blanks. Correct those statements which are false by
      rewriting them.

    1. (
      T
      )
      Business is not just one activity but a combination of different
      operations such as production, distribution and sale.

    2. (
      F
      )
      From ancient to modern times the definition of business has remained
      the same.

    1. (
      F
      )
      Moving a truckload of oranges from the orchard to the supermarket is
      an example of production.

    1. (
      T
      )
      A sales clerk provides a service by answering customers’ questions.

    VOCABULARY
    EXERCISES

      1. Look
        at the terms in the left-hand column and find the correct synonyms
        in the right-hand column. Copy the corresponding letters in the
        blanks.

        1. 1.
          goods

        1. a.
          moving or transporting

        1. 2.
          conversion

        1. b.
          trade

        1. 3.
          for instance

        1. c.
          however

        1. 4.
          distribution

        1. d.
          look at

        1. 5.
          exchange

        1. e.
          change

        1. 6.
          on the one hand

        1. f.
          for example

        1. 7.
          examine

        1. g.
          products

      1. Fill
        in the blanks with noun or verb forms. Use your dictionary if
        necessary.

        1. 1.
          production

        1. 1.
          produce

        1. 2.
          performance

        1. 2.
          perform

        1. 3.
          exam

        1. 3.
          examine

        1. 4.
          conversion

        1. 4.
          converse

        1. 5.
          classification

        1. 5.
          classify

        1. 6.
          distribution

        1. 6.
          distribute

        1. 7.
          creation

        1. 7.
          create

        1. 8.
          sale

        1. 8.
          sell

      1. Use
        the correct noun or verb form in the sentences. Change the
        grammatical form of the words if necessary.

    1. sell

    a.
    An annual report includes the ­­­­
    sale’s
    figures of the company for the current year.

    b.
    An auto dealership
    sells
    cars, trucks, vans, and something recreational vehicles.

    1. distribute

    a.
    Some companies hold exclusive
    distributive
    rights for specific products.

    b.
    Factory representatives
    distribute
    products to wholesalers and retailers.

    1. produce

    a.
    How efficiently a company
    produce
    its products will in large measure determine its success.

    b.
    The
    production
    of high-technology instruments is one of the most rapidly growing
    industries in the 1980s.

    1. classify

    a.
    Items
    classify
    in order to show the relationship between them.

    b.
    Classification means the grouping of items to show the difference
    between them.

    1. convert

    a.
    When travelling from country to country on either business or
    leisure, people convert one currency to another.

    b.
    The production process often involves the convert raw materials into
    finished products.

    CLASSIFICATION

    Classification
    means the grouping of items to show the relationship between them.
    Items that are classified together have something in common: that in,
    something must apply to all the items in that group or class. Look at
    the items below. They may be classified as either goods or services.
    Review the definitions and examples given in the reading (lines
    17-20). Classify the following items as either goods, or services.

    1.
    car

    машина

    goods

    2.
    medical diagnosis

    медицинский
    диагноз

    services

    3.
    travel agency

    туристическое
    агентство

    services

    4.
    briefcase

    портфель

    goods

    5.
    auto repair

    ремонт
    автомобиля

    services

    6.
    financial planning

    финансовое
    планирование

    services

    7.
    computer

    компьютер

    goods

    8.
    videotape recorder

    видеомагнитофон

    goods

    9.
    management consultant

    консультант
    по вопросам управления

    services

    10.
    accounting ledger

    бухгалтерская
    книга

    goods

    11.
    calculator

    калькулятор

    goods

    12.
    employment

    работа

    services

    13.
    suit

    костюм

    goods

    14.
    forklift

    грузоподъемник

    goods

    15.
    office equipment repair

    ремонт
    офисного оборудования

    services

    16.
    newspaper delivery

    доставка
    газет

    services

    17.
    computer programming

    компьютерное
    программирование

    services

    18.
    time clock

    табельные
    часы

    goods

    19.
    law book

    кодекс

    goods

    20.
    income tax preparation

    подготовка
    к подоходному налогу

    services

    APPLICATION

    1. Match
      these parts of the business definition to the following real-life
      situations.

    production
    of goods distribution of goods

    sale
    of goods sale of services

    Examples:

    Iron
    ore is made into metal car parts production of goods

    A
    salesman sells a car sale of goods

    An
    auto mechanic repairs a car sale of services

    1.
    A shipment of grain in transferred from a boat to truck.

    distribution
    of goods

    .

    2.
    A chemical plant turns raw materials into fertilizer.

    production
    of goods

    3.
    A salesman from a concrete manufacturer convinces the owner of a
    building materials company to buy a shipment of drainage pipe from
    his company.

    sale
    of goods

    4.
    A
    warehouse ships books to a bookstore.

    distribution
    of goods

    5.
    A computer manufacturer receives silicon chips and puts them into
    minicomputers.

    production
    of goods

    CAREERS
    IN BUSINESS

    PREREADING
    ACTIVITY

    Соседние файлы в предмете [НЕСОРТИРОВАННОЕ]

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    Table of Contents

    Hide

    1. What is Business?
    2. What is a Business Simple Definition?
      1. Business concept
      2. Business purpose
    3. What are the Best Words in Business?
    4. Types of Business
      1. #1. Service
      2. #2. Merchandising
      3. #3. Hybrid
    5. Types of Business Ownership
      1. #1. Sole proprietorship
      2. #2. Partnership
      3. #3. Group
      4. #4. Limited liability company
      5. #5. Cooperative
    6. What is the Most Important Rule in Business?
    7. What is the Best Business Advice?
    8. Characteristics of a Business
      1. #1. Economic activity
      2. #2. Buy and Sell
      3. #3. Continuous process
      4. #4. Risks and uncertainties
      5. #5. Creative and dynamic
      6. #6. Customer satisfaction
    9. What Makes a Business Successful?
    10. Business Ideas
      1. Business Yield Idea Generator
    11. FAQs
    12. What main business means?
    13. Why is business so important?
    14. What is the scope of business?
      1. Related Articles
    15. Reference

    When you hear the word “business,” what comes to mind? Many believe business is a commercial activity involving exchanging goods or services for profits. There is much more about the business than you ever knew, which you will discover as you read through this article.

    A business is an organization or other body that conducts commercial, professional, non-profit, or industrial activity. It may be for-profit or not-for-profit and may or may not have a separate existence from the individuals/people who control it.

    A business (activity) is a commercial activity in which goods or services are given the primary motive to generate an income.

    What is a Business Simple Definition?

    A business is a company or organization that engages in commercial, industrial, or professional activity. Businesses can be either for-profit or non-profit organizations. Limited liability firms, sole proprietorships, corporations, and partnerships are all examples of business structures.

    Business concept

    The concept of business is the basic idea of ​​business. The business model, plan, vision, and mission are developed based on this concept. For example, Uber started with the concept of integrating taxi drivers and offering their services under one brand as needed. Every other business strategy is developed based on this concept.

    Business purpose

    The goal of the business is to keep the business doing business for the long term. This is why the business exists. While most people argue that having a profit is the main goal of any business. Few developed a new underlying goal.

    According to the traditional concept, business consists only in earning income by providing goods and services to customers.

    According to the modern concept, the underlying goal of any business is customer satisfaction because it will lead to maximum profits. When the customer is satisfied, the business is good.

    What are the Best Words in Business?

    The list is endless. Let’s start coming up with some potential business buzzwords: Invention, Strategy, Core Purpose, Competitive Advantage, Quality, Values, Market Share, Solution. Furthermore, Excellence, Culture, Execution, Cash Flow, Collaboration, Alignment, Vision, Leadership, Momentum, Growth, Profits, People, Customers, Innovation, Differentiation, etc.

    Types of Business

    Businesses can be classified into 4 types, but not limited to them. These are the –

    Manufacturing companies are the manufacturers who develop the product and sell it either directly to the customer or to middlemen to make sales. Examples of manufacturing companies are steel mills, plastic mills, etc.

    #1. Service

    This type of business deals with selling intangible goods to consumers. In contrast to material goods, services cannot be hidden or isolated from the provider.

    Service companies provide professional services, expertise, commission-based promotions, etc. Examples are salons, schools, counseling, etc.

    #2. Merchandising

    Merchandising is a middleman business strategy where the company buys products from a manufacturer, wholesaler, or other partner and sells them at a retail price. This is commonly referred to as “buying and selling” because they profit by selling products at a price higher than the cost.

    Examples of merchandising businesses are grocery stores, supermarkets, retailers, etc.

    #3. Hybrid

    Hybrid businesses have the characteristics of two or more companies discussed above. For example, a restaurant makes its own dishes (manufacture), sells products such as cold drinks made by other companies (goods), and provides service to customers

    Types of Business Ownership

    Corporate ownership comes in many forms based on the number of owners, owner responsibility, representation, and motive. These are the –

    #1. Sole proprietorship

    A sole proprietorship is a company owned and operated by a single person. Easy to set up, use, and register. All business income is the owner’s property, and he is responsible for all liabilities incurred.

    The main disadvantage of this business is that the owner has unlimited liability. Lenders can track the owner’s personal assets if the company does not pay for them.

    #2. Partnership

    When two or more people join the force to run a business, they usually form a partnership. Partnerships come in two forms – general and limited. A partnership is like ownership, but there is more than one owner, and all owners have unlimited liability. In a limited partnership, some or all of the partners have limited liability.

    #3. Group

    A company has a separate legal identity from the people who own or operate it. Ownership is usually represented in the form of shares.

    Owners have limited responsibilities but are not necessarily involved in running the business. The company is managed by a team (Board of Directors) elected by the shareholders.

    #4. Limited liability company

    A limited liability company is a hybrid type of business with both corporate and partnership characteristics. It is a partnership because it has not been registered and a company because all partners/owners have limited liability.

    #5. Cooperative

    The cooperative is a private business organization owned and controlled by people for mutual benefit. These people are called members and benefit from the goods and services offered by the cooperative. All members are expected to contribute to the management of the company as the main motive of the cooperative is to provide a service to all members rather than a return on investment.

    What is the Most Important Rule in Business?

    You must stand behind your product 100%. Prioritize your customers’ needs above all else. If buyers are putting their faith in your product, you had better make good on that faith. Customers will rave about your product’s quality if they feel like they got their money’s worth from it.

    What is the Best Business Advice?

    • Listen to your customers’ needs.
    • Focus on a particular niche market.
    • Talk to those who have done it.
    • Ask how you can help.
    • Think Long Term.
    • Ditch Perfectionism.
    • Picture Your Business Like A Workhorse.
    • Hustle And Network In Order To Succeed. You won’t succeed unless you hustle.

    Characteristics of a Business

    The following are the important characteristics of a business:

    #1. Economic activity

    Business is an economic activity of producing and selling goods and services. It offers job opportunities in various sectors, such as banking, insurance, transportation, industry, commerce, etc. A business is an economic activity involving setting up public service companies to meet people’s needs.

    It provides a source of income for society. Business opportunities lead to job creation and, as a result, economic growth. Makes the industrial and economic development of the country.

    #2. Buy and Sell

    The basic activity of a company is commerce. The business includes buying raw materials, tools, machinery, office supplies, real estate, etc. On the other hand, finished products are sold to consumers, wholesalers, retailers, etc. The business makes various goods and services available to the company’s various departments.

    #3. Continuous process

    Business is not a one-time activity. It is a continuous process of production and sale of goods and services. A single trade cannot be called an agreement. A business must be run periodically to grow and generate regular returns.

    Companies must continually engage in research and development to gain a competitive advantage. A continuous improvement strategy helps increase the profitability of the company.

    #4. Risks and uncertainties

    Risk is defined as the impact of uncertainty on business objectives. Risk is associated with each business. The business is exposed to two types of risk: insurable and uninsurable. An insurable risk is predictable.

    #5. Creative and dynamic

    Modern business is creative and dynamic. To make and sell goods and services, a business needs to develop new ideas, ways of doing things, and concepts. This means taking things in a fresh, new, and inventive way.

    You have to be creative because the company works in a social, economic, and technological environment that is always changing. Companies must also develop new products to meet the growing needs of consumers.

    #6. Customer satisfaction

    The phase of business has changed from traditional concepts to modern concepts. Today, the company has a consumer-centric approach. Customer satisfaction is the highest priority in all economic activities.

    What Makes a Business Successful?

    8 interesting things every successful business has in common:

    Exclusive value
    Tenacity.
    Customer-focused strategy.
    Good advertising.
    Solid vision.
    Leaders who are driven.
    Empowered workers
    Lastly, a readiness to take risks. Risk-takers in business are more likely to succeed than those who play it safe.

    Business Ideas

    Choosing the path of entrepreneurship can be very challenging. Building a business from the ground and getting it up and running is serious work. However, there are ways to ease the stress. First is getting a business mentorship; every successful entrepreneur you see today has who they look up to.

    Before running any business successfully, you must get a business plan; this will help you discover any weaknesses in your business idea so you can address them.

    Business Yield Idea Generator

    What makes this the best anyone can find online is that this generator is purely done by humans, not by algorithms or Artificial intelligence.

    Humans gather data and do quick but detailed research based on the information you provide. It’s simple: answer a few simple questions, and your business ideas will be delivered to your inbox in less than 24 hours.

    24hrs because this is the most feasible idea generator as it considers your budget, intended startup locations, talents and skills, the available time you can give the business, etc.

    Based on these data with an extensive feasibility study and just a little token, you would have a list of ideas sent to your email with links to give you access to instant business plans, a business model canvas, and up to 3 years of financial analysis to help you get started for the business.

    FAQs

    What main business means?

    Principal business(es) refers to the principal business(es) of the Company as declared in its financial statements.

    Why is business so important?

    Numerous elements of a nation’s economy, such as productivity, employment, and a measure of financial security, are facilitated by businesses.

    What is the scope of business?

    It encompasses all human actions that serve to meet the needs and desires of a society’s inhabitants. A significant portion of the firm is devoted to delivering the final or completed items or goods to the intended customers.

    Related Articles

    1. Business partnership agreement: How to structure a business partnership agreement
    2. Partnership Agreement: Best Tips on How to write a partnership agreement
    3. General Partnership Definition: Taxes, Liability & Agreement

    Reference

    • Investopedia.com
    • yourstrory.com

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