Some More Discussion About Business
“Business includes only economic activities and must concentrate on exchange of goods and services but it is the moral duty of businessmen to take into consideration community needs also. ”
Business is basically an activity that is undertaken with profit motive in mind. Anything whether it’s a product or a service can be used to earn profit and thus comes under the purview of business.The person who recognizes the need for a product or service is known as entrepreneur. He is a key figure in the progress of economic growth. The quality of entrepreneurship existing in any region determines to a large extent the development of that region.
Business includes only economic activities and must concentrate on exchange of goods and services but it is the moral duty of businessmen to take into consideration community needs also.
The profit motive is an important element of business. Any activity undertaken without profit motive is not business. This does not mean that businessmen should exploit their customers to earn profit. The responsibility of the businessmen towards society restricts them from earning exorbitant profit.
In fact businessmen try to foresee the future uncertainties and plan their business activities accordingly. Governments, from time to time, keep on placing restriction as to the amount of profit that can be made from a particular business (in percent of the total value of business).
The factors on which business depends are never certain. There may be shift in demand, strike by workers, floods, war, fall in prices, etc. The risk element in business always keeps a businessman a vigilant person and he tries to ward off the risks by executing his policies properly.
In business, only those transactions are included which have regularity and continuity. An isolated transaction cannot be called business, even if the person earns profit from that deal. Let’s take the case of a person who initially built a house for himself but later on had to sell it. He gained much in the bargain. This does not come under the agreed upon definition of business.
In business, goods are provided to the customers as per their likings. Business creates various types of utilities in goods so that customer may use them.
When the goods are transported to the consumer’s place this is called as place utility of business. Similarly, the process of storing the goods when they are not required and supplying them when they are needed is called as the time utility created by business.
Author - DeeKay
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