Ch-1 - PART I Foundations of Business CHAPTER 1 NATURE AND...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
P ART I Foundations of Business
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
C HAPTER 1 N ATURE AND P URPOSE OF B USINESS LEARNING OBJECTIVES After studying this chapter, you should be able to: explain the concept and characteristics of business; compare the distinctive features of business, profession and employment; classify business activities and clarify the meaning of industry and commerce; state various types of industry; explain the activities relating to commerce; analyse the objectives of business; describe the nature of business risks and their causes; and discuss the basic factors to be considered while starting a business.
Background image of page 2
3 NATURE AND PURPOSE OF BUSINESS influence on our daily lives. It, therefore, becomes important that we understand the concept, nature and purpose of business. 1.2 C ONCEPT OF B USINESS The term business is derived from the word ‘busy’. Thus, business means being busy. However, in a specific sense, business refers to any occupation in which people regularly engage in an activity with a view to earning profit. The activity may consist of production or purchase of goods for sale, or exchange of goods or supply of services to satisfy the needs of other people. In every society people undertake various activities to satisfy their needs. These activities may be broadly classified into two groups — economic and non-economic. Economic activities are those by which we can earn our livelihood whereas non-economic 1.1 I NTRODUCTION The conversation among the four classmates is obviously focused on the meaning, nature and purpose of business. All human beings, wherever they may be, require different types of goods and services to satisfy their needs. The necessity of supplying goods and services has led to certain activities being undertaken by people to produce and sell what is needed by others. Business is a major economic activity in all modern societies concerned as it is with the production and sale of goods and services required by people. The purpose behind most business activities is to earn money by meeting people’s demands for goods and services. Business is central to our lives. Although our lives are influenced by many other institutions in modern society such as schools, colleges, hospitals, political parties and religious bodies, business has the major Imran, Manpreet, Joseph and Priyanka have been classmates in Class X. After their exams are over, they happen to meet at a common friend Ruchika’s house. Just when they are sharing their experiences of examination days, Ruchika’s father, Mr. Raghuraj Chaudhury intervenes and asks about their well-being. He also enquires from each one of them about their career plans. But none of them has a definite reply. Mr. Raghuraj, who himself is a businessman, suggests to them that they can opt for business as a promising and challenging career.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 20

Ch-1 - PART I Foundations of Business CHAPTER 1 NATURE AND...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online