Prior to this article, we have discussed a lot about business on our blog. We have discussed Business ideas, steps to start a business, and ways to become wealthy. Today I am going to take you into the world of business and we are going to explore the characteristics of business, the category of business, and their differences.
What is business?
Business is commercial activity (buying selling goods or providing services) undertaken by an individual or group with the objective of earning profit & satisfying customer needs.
A Business includes only economic activities i.e. all those activities relating to the production and distribution of goods and services are called economic activities, any activity undertaken without economic consideration will not be a part of business
Businessman:-
All of us need food, clothing, and shelter. We also have many other household requirements to be satisfied in our daily lives. To satisfy this need we need to purchase goods from shopkeepers. The shopkeeper get these goods from the distributor and the distributor gets them from the manufacturers. So the shopkeeper, distributor, and manufacturer are called a businessman.
Characteristics of Business:-
Let us check out a few common characteristics of business required by business enterprises irrespective of their nature, size, and form of ownership.
- Vision & Mission: – You must define what you want to do in business -vision and how you will do it – mission.
- Business with ethics: – You must carry out business with ethics.
- Buyer & Seller :-In any business /commercial activity buyer and seller is must.
- Continuity in dealings: – Business is said as business only if you have continuity in dealings.
- Exchange of goods and Services with money
- Risks and Uncertainties:- Risks and Uncertainties are more in business
- Legal Obligations: – You need to take care of all Legal obligations arising from business.
- Customer Satisfaction: – You need to satisfy your customer to get another business.
- Profit is the main objective i.e. desire to earn profit
- Business Skills for Economic Success: – Skill is a must for achieving economic success in business.
Category of Business:-
Business is broadly classified into three distinct categories. Manufacturing, Trading and Services.
Manufacturing: – It is related to production/manufacturing of goods. E.g If you are running a mill for making clothes you are in the manufacturing industry.
Discrete Manufacturing: – Discrete manufacturing is the production of distinct items. Automobiles, furniture, toys, smartphones, and airplanes are examples of discrete manufacturing products.
Continues/Process Manufacturing: – Continuous manufacturing is associated with batch manufacturing or process-based manufacturing. Process industry examples are pharma, food, chemical, etc.
Trading:- Trading means buying and selling goods to earn profit. Examples of traders are retailers, wholesalers, Garment stores, Departmental stores, etc.
Services: – Services is another business category. Service industries include banks, hospitals, insurance, Transportation, IT, etc.
Key Differences between manufacturing and services:-
Hope I have clarified your doubts related to the business world.
Remember:-
Profit is the lifeblood of business……
The world we live in………………………
is the world of business………………
Do share your views on the above. Stay tuned for more business updates.
