As we know that industry and commerce are the components of business. So, functions performed by industry and commerce are also the functions of business. Production, marketing, financing, human resource management, innovation and research are the major functions of business.
Functions of business can be discussed as follows:
1. Production
Production is the main function of business. Business consists of industry. Industry converts raw materials and components into finished products. Products satisfy consumer wants. Production is done by manufacturing, extracting, genetic and construction industries. Manufacturing is done by assembling, processing, analytical and synthetic industries.
2. Marketing
Business performs marketing function also. Whatever is produced should be old. Industrial products need to be marketed. Business consists of commerce, commerce consists of trade and aids to trade. Trade involves buying and selling of products. Aids to trade support trade.
3. Financing
Business performs financing function. It involves mobilization and utilization of capital. Capital is needed to buy factors of production. Men, materials and machinery are factors of production. Business needs fixed and working capital for land, building, machinery, raw materials and credit sales. The sources of capital can be personal savings or bank loans.
4. Human resource management
Business performs human resource management function by creating job opportunities. It provides employment. Employees are needed to carry on business activities.
5. Innovation
Innovation is another major function of business. It performs innovation function by developing new products. Research and development is the source of innovation. Business invests money in research an development of new products.
6. Research coordination
Business performs research coordination function also. It brings together various resources. They can be men, money, materials, machines, and management information. Resource coordination is needed for smooth running of business.
7. Managing
Business performs managing function. It gets the job one through people. It carries out the functions like planning, organizing, directing and controlling.
Functions of business can be discussed as follows:
1. Production
Production is the main function of business. Business consists of industry. Industry converts raw materials and components into finished products. Products satisfy consumer wants. Production is done by manufacturing, extracting, genetic and construction industries. Manufacturing is done by assembling, processing, analytical and synthetic industries.
2. Marketing
Business performs marketing function also. Whatever is produced should be old. Industrial products need to be marketed. Business consists of commerce, commerce consists of trade and aids to trade. Trade involves buying and selling of products. Aids to trade support trade.
3. Financing
Business performs financing function. It involves mobilization and utilization of capital. Capital is needed to buy factors of production. Men, materials and machinery are factors of production. Business needs fixed and working capital for land, building, machinery, raw materials and credit sales. The sources of capital can be personal savings or bank loans.
4. Human resource management
Business performs human resource management function by creating job opportunities. It provides employment. Employees are needed to carry on business activities.
5. Innovation
Innovation is another major function of business. It performs innovation function by developing new products. Research and development is the source of innovation. Business invests money in research an development of new products.
6. Research coordination
Business performs research coordination function also. It brings together various resources. They can be men, money, materials, machines, and management information. Resource coordination is needed for smooth running of business.
7. Managing
Business performs managing function. It gets the job one through people. It carries out the functions like planning, organizing, directing and controlling.
