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