Business is money-oriented economic activity. It is carried out on to earn income and wealth. It provides economic benefits. Business is measured in money.Business is concerned with production and marketing of products. Goods, services, ideas, places, persons and information are products. Marketing involves exchange of products for money.
Business creates utilities to satisfy consumers needs. Utilities can be of three types. They are:
a. Form utility: it i created through processing. It involves converting raw materials into finished goods. For example, sugar is converted into sweets.
b. Place utility: It is created through transporting goods from place of production to place of consumption. Consumers can buy goods at convenient places.
c. Time utility: It is created through storage of goods for future use. Delivery can be made in tome to meet consumer needs.
Business consists of industry and commerce. Industry is engaged in production of goods. It uses resources. Commerce is engaged in marketing of products. The profit motive drive business. It makes profit in a socially responsible manner. Every business involves risk. Possibility of loss is risk.
a. Form utility: it i created through processing. It involves converting raw materials into finished goods. For example, sugar is converted into sweets.
b. Place utility: It is created through transporting goods from place of production to place of consumption. Consumers can buy goods at convenient places.
c. Time utility: It is created through storage of goods for future use. Delivery can be made in tome to meet consumer needs.
Business consists of industry and commerce. Industry is engaged in production of goods. It uses resources. Commerce is engaged in marketing of products. The profit motive drive business. It makes profit in a socially responsible manner. Every business involves risk. Possibility of loss is risk.
