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Business Organisation
Contents
• Business
• Criteria for Success in Modern Business
• Distinction between Business and Profession
Business refers to the production and sale of goods or services in exchange for money. It can take many forms, from small businesses to large corporations. Profitability is a primary goal of most businesses, along with efficient operations, effective marketing, and good customer service. Businesses play a critical role in driving economic growth and providing job opportunities.
The Word business simply means "The State of Being busy". It Confines its study only to those human activities in relation to exchange of goods and services for money. The purpose of exchange of goods and services is to Satisfy Human wants.
C.R. Dicksee defined business as "an entity engaged in providing goods or services to customers in exchange for money or other valuable consideration.
Skinner said "Business is the exchange of goods and services or Money for mutual benefits or profit"
B.O.Wheeler said "Business is an Institution organised to provide goods and services to the society under the Incentive of gain'
There are Mainly four Characteristics.
1.Sales, Transfer or exchange of Goods and services for Value.
2.Continuity of Dealings
3.Profit Motive
4.Uncertainty and Risks
These four Characteristics is discussed below
1.Sale Transfer or exchange of goods and services for Value
Business Involves sale , Transfer or exchange of goods and services for Value. Production or purchase of goods and services for personal consumption is obviously outside of the scope of Business because there is no sale or transfer for value. Therefore, production or purchase for one's own consumption is not a business activitiy. Other hand if the production and purchase for others it is considered as a Business activity.
2.Continuity of Dealings.
Continuity of dealings is critical for the success of any business organization. By focusing on strong leadership, financial stability, consistent quality, reliable supply chain, good communication, and effective human resource management, organizations can build trust and long-term relationships with stakeholders, ensuring ongoing success over the long term.
3.Profit Motive.
Profit is the ultimate aim of any business. It may have other Motives also but if this motive is absent. It is not a Business activity at all.
4.Uncertainty and Risks
Profit for any business depends not only on the Factors over which he has no control ot less control. Thus all business activities involve some elements of risk and Uncertainty in respect of the success of the business.
