Definitions [4]
Define business.
Business refers to an economic activity that basically involves trading of goods and services on a regular basis. The sole motive with which a business is conducted is profit.
-
Prof. Haney: “Business activities are all those human activities that are directed towards the production and processing of wealth.”
-
Prof. Pride, Hughes, and Kapoor - “The organized efforts of individuals to produce and sell for a profit the goods and services that satisfy society’s needs.”
Define industry.
Industry refers to all those economic activities which are concerned with converting the raw materials and resources into useful goods. The terms is often used to describe a group of firms producing similar type of products.
The wide network of trade, transport, banking, insurance, warehousing, and advertising enables the smooth exchange of goods and services.
Formulae [1]
Every business operates with the aim of earning a profit, which is the excess of revenue over costs.
- Profit = Revenue - Total cost
Concepts [16]
- Introduction to Business, Trade and Commerce
- Role of Business in the Development of Economy
- Concept of Business
- Comparison of Business, Profession and Employment
- Classification of Business Activities
- Meaning of Industry
- Concept of Commerce
- Concept of Trade
- Auxiliaries to Trade
- Business Objectives
- Concept of Business Risk
- Nature of Business Risk
- Causes of Business Risk
- Basic Factors of Starting a Business
- Role of Profit in Business
- Human and National
