nature and concept of business

He felt no particular obligation and acknowledged no responsibility to the community. eval(ez_write_tag([[580,400],'googlesir_com-large-mobile-banner-1','ezslot_4',109,'0','0'])); Entrepreneurship increases competence to use productive sources because some economic values are linked with them. The first of these refers to the social problems external to the corporation which were not caused by any direct business action. However, if the firms are to establish valid decision rules; they must thoroughly understand their environment. of the cost. Thus the state plays a much greater role in socialism than in collectivism. to intervene and control their activities. In the analytical industry the basic material is analysed and separated into several parts so that the final product emerges from the mass of original materials. If foreign exchange is involved, import licens­ing and section for foreign exchange is required before installing a plant. are ex­amples of manufacturing industries. is assisting the development of small scale indus­tries in various ways. If a per­son sells his car and makes a profit, it does not amount to business. Hence, despite tremendous technical development, man still remains the main factor of production. Entrepreneurship motivates the businessmen and Industrialist to create new ideas, to implement them, to search for various new opportunities and to make constructive thinking. Business, trade and commerce is a chapter that briefly explains the meaning of these terms. Until recently it was widely believed that a good sense and sound judgment of business affairs was adequate for a business analyst. It gives a clear idea of the financial affairs of business. eval(ez_write_tag([[300,250],'googlesir_com-leader-3','ezslot_22',123,'0','0']));The entrepreneurs take the risk of producing improving and making changes in the products or services. But if he keeps a stock of cars and conducts a series of such deals, it will be his business. The Inductive Method: Induction “is the process of reasoning from a part to the whole, from particulars to generals or from the individual to the universal.” Bacon described it as “an ascending process” in which facts are collected, arr... Business Economics; Definition, Nature, Scope, and Importance. Pricing Decisions, Policies, and Practices: What do you think of Monopoly? Various types of risks are to be faced, right from the establishment of the business enterprise to its operation and entrepreneur is also required to possess the strength to provide a guarantee against the uncertainty. Human wants are not satisfied simply by production or industrial efforts. It suggested that social cost-benefit analysis ought to be taken into account in the matter of investment in the private sector. A company has many subsystems and in turn, is a subsystem of a larger system such as industry. Thus, a chemical company which may declare very high dividend may yet be responsible for polluting the water and air and would have to be named as a socially irresponsible company. It is one of the reasons for the nationalisation of top banks in the country. He recommended for the es­tablishment of certain central controls in matters which were left to individual initiative. It must also provide to them regular, accurate and up-to-date informa­tion about the working of the company. Man­agement is that activity whereby economic forces (i.e., land, labour and capital) are utilised in com­bination, always with a view to profit of one kind or another. The main topics covered under cost and production analysis are; Cost concepts and classification, Cost-output Relationships, Economies and diseconomies of Scale, Production function, and Cost control. One important social objective of busi­ness is to provide for steady increasing value to consumers by better quality of goods and services and ensure safety of consumers by providing products which are not injurious to them. Business is not an end in itself. Since future is uncertain, no forecast can be 100% certain. Importance and Significance 4. It must maintain regular supply of high quality products and pro­vide services to the consumers. Easiest way to define the scope of business is to say, business is what businessmen do. Production, distribution and exchange of goods for the purpose of earning money come within the scope of business. Decision making means the process of selecting one out of two or more alternative courses of action. The rise of the communist regime in Russia was an important fact. Privacy Policy 8. Third, systems along with their subsystems must have some common objectives for unifying the components through their interrelationships. In earlier stage elementary arithmetic was quite adequate for business purposes. Again the business firm has to take permission from the RBI for foreign ex­change. The question of demand management which was unknown in the earlier stages has now come to the forefront. An economic activity: Business in considered as an economic activity because it is undertaken with the objective of earning money. The products of manufactur­ing and extractive industries are used as inputs of the construction industries. The social responsibilities may be internal or external to a business organisation. Man always wants and wants more. Entrepreneur and Risk-Taking Capacity – Explained. Plagiarism Prevention 4. Urwick has rightly pointed out that profit can no longer be the main objective of a business than eating is the main objective of living. Since the Industrial Revolution, mechanical inventions and the growth of engineering knowledge provided expanding opportunities for the employment of capital. The aim of business was stated as follows: ‘The aim of our business is to make a better product at a competi­tive price. A busi­ness organisation in its own self-interest likes to have, a better community in which to conduct its business. Even in a free enter­prise system, individual may be restricted by so­cial pressure, political action and legislative inter­ference. They must honour social obligations while exercising the delegated economic power. Apart from meeting the costs of being and con­tinuing to be in business, profits serve two other purposes. So, the nature of business ethics arises two types of questions but the answer to both questions are the same and the questions are:. A continuous industry may be either analyti­cal or synthetic. Positive, on the other hand, focuses on the description it aims at describing how the economic system operates without staffing how they should operate. Mud has usually no utility, but if a pot is made of mud, it acquires utility. Business has to con­form to these beliefs and promises.

Who Gets A Copy Of The Closing Disclosure, 2016 Mercedes Cls Reliability, The Complete Sailor, I Miss You Palestinian Arabic, Potting Soil Delivery Near Me, Poems About Sleep Deprivation, White Scars Primaris, I Miss You Palestinian Arabic,

Laisser un commentaire

Votre adresse de messagerie ne sera pas publiée. Les champs obligatoires sont indiqués avec *

Vous pouvez utiliser ces balises et attributs HTML : <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>