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Nature and Purpose of Business. - Coggle Diagram
Nature and Purpose of Business
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Definition of Business
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities.
Why We Study Business
Relevance to Everyday Living
Personal Profit and Growth
Service to others
To find oppurtunities
Career choice
Business Objectives
To survive in the market
To maximise profits
To increase market share
To diversity and sell different products
Nature of Business
Economic Activity
Human Activity
Social Process
System
Types of Industry
Primary Industry
- Extractive Industry =
Extraction of underground resources
- Genetics =
People doing business by changing genes.
Secondary Industry
- Construction =
Construction of buildings, roads, bridges.
- Manufacturing =
Conversation of raw material into final goods.
- Services =
Banking, consultancy, accountant, Lawyer, Interior decorator designer, music, composer.
Types of Commerce
- Trade
Trade means buying and selling
Two types of trade : Home and Foreign trade.
- Aid to trade
Institutions that are meant and build to assist and support the trading process.
Factor influencing business ownership
Internal forces
Factor within the organization.
These are controllable by the organization.
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Types of environmental forces
External Forces
Factors found outside an organization.
These factors are not controllable by the organization.
- Factors
- Demographic Factors
Demographic factor is a study of population.
Population brings costumers.
- Political and Legal factors
Preference and priorities of the Government.
Attitude of the Government towards Exports.
-Technological Factors
Business people have to pace with the technological advancements.
-Sociocultural Factors
Religion
Culture
Lifestyle
Social class
- Natural Factors
Act of god
Natural factors are out of our control.