BUSINESS MANAGEMENT

meaning of the business:-

                          in the restricted sense of the term, business will be treated as the purchase and sale of the things.  But in the broader sense of the term, business of the sum total of all the activities which starts which starts from the production of good and services seen to the task of taking them to the consumers.  here service mean those activities which are connected with the carrying of goods from the place of production and taking them to the place of the consumption.  For example, they included transport and communication, insurance, storing, banking etc.

characteristics of business:-

     *An economic activity

     *Exchange of goods and services

     *Regularity in dealings

     *profit motive

     *Element of the risk

     *Creation of the utility

     *Consumers satisfaction

NATURE OF THE BUSINESS:-

1.       BUSINESS AS A SOCIAL  ACTIVITY:  One of the important aspect of nature of business is that it is a social activity.  Social activity is one which is related with the creature living n society.  Business is for the society.  By the society. Business cannot be done without society.  For instance, if someone decides to do business in a jungle he cannot do so.  Business exist due to the factors provided by society,  business gets raw material, man power, capital and other sources from society,  it produces and distributes the goods which are used by the society in exchange of some consideration,  hence, it is evident  that business is social activity and integral part of society.  In light of all these evidences, one can safely say that business has certain responsibilities towards society, which business must fulfill.  The main objective of business is to provide good quality of product at reasonable price and in proper quantity to its customer, besides this expectation and feeling of employees and other people associated with business cannot be overlooked.

2.       BUSINESS AS AN ECONOMIC ACTIVITY: The another aspect of nature of business is that it is an economic activity.  Economic activity is an activity which is performed to earn money,  business is also an economic activity.  Economic activity is an activity which is performed to earn money,  now the question is how business earn money? Business produces good and services and in exchange of some consideration, transfer them to consumer.  In this manner, business earn money.  No one wants to do a business which is not making profits.  Hence, business and earning money go and n hand.  As soon as objective of earning money is separated from economic activity, it does not remain an economic activity, it does not remain an economic activity anymore.  It becomes a non-economic activity and any non-economic activity cannot be business. hence, what is required for calling any activity a business activity is presence of motive of profit earning.  Hence, whatever activities are performed in business., their main objective is to earn profit.  So it can be concluded is an economic activity.

3.       BUSINESS  IS NOT A PROFESSION: In important question which can be asked regarding the nature of business is whether it is a profession? The answer is –no.  business cannot be put in the category of profession. On needs to have a specific knowledge.  For instance, doctor, advocate, engineers, etc.,  needs field, is known as profession.  for running a business, that is not at all required.  Hence, it is clear that nature of business is not that of profession.

4.       BUSINESS A SYSTEM: System is a group of many small sub- system. In other words, a group is formed by merger of many small units which is called as system  in this sense, business is also a sales, purchase, production, distribution, marketing, research, finance, etc., are included. All sub activities are independent in themselves but are related with each other for  one or other reason.  In this manner, all related sub-system form a large which is called as business.  The detailed explanation of this aspect of nature of business has been made in the next heading “BUSINESS SYSTEM IS A PART OF AN ECONOMIC SYSTEM”.

BUSINESS SYSTEM IS A PART OF A ECONIMIC SYSTEM

     The main question related to business system and economic system is whether business system is a part of an economic system?  for getting the answer of the question, there items are to be understood carefully.  These are system economic system and business system. 

OBJECTIBE OF THE SYSTEM :

1.       PROPER UTILISATION OF RESOURCES: By studying about a system, it is possible to achieve maximum and efficient utilasation of various limited resources.

2.       KNOWLEDGE OF INEFFICIENT ELEMENT: the another objective of studying a system is to ger the information about  ineffective unit of system.

     *Knowledge of the inefficient elements

MEANING OF THE ECONOMIC SYSTEM:

     Economy system or economy means that system under which limited resourses of the country are utilised in the most efficient manner to satisfy the unlimited wants of people.  Under  economic system it is decided that who will own the asset, who will own factors of production,  what will be the roll of the government, how the production and distribution of commodities will take place and how the prices of commodities will be determined?

TYPES OF THE ECONOMY:- 

     *Capital economy

     *Sociliest economy

     *Mixes economy

MEANIG OF THE BUSINESS SYSTEM:-

                                the business system is a combination of all resources, organisation and institution which are directly or indirectly related to be production and distribution of goods and services for the satisfaction of human needs.     

CONCEPTS OF BUSINESS:

1.       MAXIMUM PROFIT CONCEPT: The oldest concept of business is that maximum profit should be earned.  A per this concept, in any case, maximum profit must be earned, this is , no doubt, is correct motivation him to expand business.  Some scholers have conflicts for this concept.  Some are in favour of it and some are against it.

·         By earning maximum profit, trade cycle can be faced.

·         Maximum profit is a motivator for expansion of business.

·         Maximum profit is a motivator for expansion of business.

·         Maximum profit is a sign of glory.

·         Social welfare can be achieved by maximum profit.

·         Maximum profit is scale for success of business.

2.       REASONABLE PROFIT CONCEPT:  As per tis concept, objectives of business should be to earn reasonable profit instead of maximum profit.  Business should earn profit as much is required to live longer, develop itself and increase in respect and reputation of business.  Following facts support this concepts.

·         Reasonable profit enhance the respect and reputation of business.

·         Future mishappenings can be faced by reasonable profit.

·         Society is not exploited by reasonable profit. Reasonable profit reduces the inequality of wealth. Concept of  reasonabel profit teaches to work for national interest.

3.       SOCIAL RESPOSNSIBILITY CONCEPT:  Since business organisatons are a part of society they must have a positive attitude towards the needs of society.  Business is only a sub system of society and this sub system must contribute to the welfare of the main system.