NATURE & OBJECTIVES OF BUSINESS
business is an economic activity which regularly deals in production,distribution and exchange of goods and services to satisfy human wants, mainly with the motive to earn a profit
CHARACTERISTICS OF BUSINESS
1)profit motive:-main motive is to earn a profit
2)creation of utility
3)economic activity:-1 profit motive/2 creation of utility/3 utilization of resources
4)regular dealing:- a firm/company should deal regularly to be called as a business
5)element of risk:-risk is the most important factor of a business// every decision taken regarding production contains some amount of risk
NECESSITY OF BUSINESS
1)foreign exchange:-get foreign currency by exporting certain things
2)to remove poverty:-business grow=employment grow=poverty less
3)standard of living:-business groe=emp grow=s of liv grow
4)to generate employment:-business grow=need of workers grow=employment badhegi
5) to promote social welfare:-tata ngo/ reliance-animal shelter
WHY IS BUSINESS CALLED AN ECONOMIC ACTIVITY?
1)profit motive
2)creation of utility(satisfy needs)
3) utilization of resources(land ,labour,capital)
ECONOMIC OBJECTIVES
1)earning profit:-basic and primary motive of a business
2)innovation:-new ideas
3)creating customers:-attracting customers through advertisment and schemes
SOCIAL OBJECTIVES
1)fair remuneration to workers
2)providing desired goods at reasonable prizes
3)employment generation
4)Social welfare(opening hospitals,ngo)
ROLE OF PROFIT IN BUSINESS
1)growth
2)incentive:-reward of taking risk
3)survival:-to reward different factors of production
4)measure of efficiency:-measure the success of business
5)growth of business:-new plants& machinery