Business Concept ?

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Business Concept

  • The British Empire began to take roots in India in the mid 18th century. The east India company used revenues generated by our provinces for purchasing raw materials, spices and goods. This lead to stop of inflow of foreign exchange.
  • This changed the condition of Indian economy from being an exporter of processed goods to the exporters of raw materials and buyers of manufactured goods.                                                                                                                                             India begins to Reindustrialise                                                                               After the Independence the process of rebuilding of economy started. When India started centralised planning.
  • First five year plan was implemented in 1952, due importance was given to establishment of modern technological and scientific institutions, space and nuclear programmes.
  • Despite these efforts Indian economy could not develop at rapid pace, due to lack of capital formation. Rise in population, huge expenditure on defence and inadequate infrastructure.
  • As a result, India relied heavily on borrowings from foreign sources and finally agreed to economic liberalisation in 1991
  • The Indian economy is one of the fastest growing economies in the world.
  • Rising Incomes, savings, investment opportunities, eased domestic consumption and younger population ensures growth for decades to come.
  • The high growth sectors have been identified, which are likely to grow at rapid pace world over.
  • . The recent Initiatives of government such as ‘Make in India. “Skill India. Digital India and roll out of Foreign Trade Policy (FTP 2015-20) is expected to help economy in terms of exports and imports and trade balance.

 

Make in India is an initiative launched by the government of India on 25th Sept. 2014 to encourage national as well as multinational companies to manufacture their products in India. The major objectives of ‘Make in India’ initiative are Job Creation and Skill enhancement in 25 sectors of the economy which are as follows:

 

BUSINESS-CONCEPT

All human beings, wherever they are, are required to perform some or the other activity to satisfy their needs. They pursue different occupations to earn a livelihood and to get some psychological satisfaction. Activities which human beings undertake are known as human activities. Some of these activities are undertaken to earn money but others are performed derive personal satisfaction. On examination of the human activities, one can find that some of these activities produce direct economic benefits eg, working in office, running a shop, practising as a doctor etc. while others do not produce direct economic benefits e.g., cooking. playing, going to school, going to temple etc.

  1. TYPES OF HUMAN ACTIVITIES                                                                           Human activities can be classified into two categories :1. Economic activities
    1. Non economic activities                                                                                                                        3.1 Economic ActivitiesActivities which are undertaken by people with the object of earning money and know economic activities. These activities are concerned with production, exchange and distribution of goods and services. The purpose of economic activities should be expectation of money income which is used for further creation of wealth or assets.

      Examples of Economic Activities Production of goods in a factory, distribution of goods by a wholesaler or retailer, working in a factory, practising as a doctor, lawyer, working as a teacher in a school etc.

      3.1A Types of Economic Activities

      Economic activities can be divided into three categories:

      1 Business

      2 Profession

      3 Employment

      Business: Business refers to those economic activities which are connected with the production, purchase, sale or distribution of goods or services with the main objectives of earning profit.

      Examples: Fishing, mining, farming, manufacturing, wholesales etc.

      2. Profession: Profession refers to the activities which require special knowledge and skill to be applied by an individual in his work to earn a living. These activities are subject to guidelines or codes of conduct laid down by the professional bodies. The people who are engaged in professions are known as professionals For example, lawyers are professionals engaged in the legal profession governed by the Bar Council of India, doctors are professionals who are in the medical profession and are governed by the Medical Council of India.

    2. Employment : Employment refers to an activity in which an individual works regularly for another person and gets remunerated in return. Those who are employed by others are known as employees. The persons who engage others to work regularly for them are known as employers. The remuneration paid by employer to employee is known as salary or wage.                                                          Examples of employment: Working in offices, banks, insurance companies, shops, as a manager, clerk peon, salesman etc.                                                                                                                                                                                               Non-Economic Activities 

    The activities which are undertaken by an individual with a motive of getting psychological satisfaction are known as non economic activities e.g.. going to temple, charity, social services production for self-consumption etc  The end result of non-economic activities is not earning profit or creation of wealth but it gives satisfaction.

    Whether an activity is economic or non-economic, it depends on the motive with which i is performed. The same activity can be economic if it results in earning money and can be non economic if end result is not monetary gain. For example, when a teacher is teaching in a school, it is an economic activity because he or she gets salary for teaching and when the teacher is teaching his or her son at home, then it is non-economic as he or she will not get monetary benefit for teaching but the end result is satisfaction of teaching one’s own child. In the same way, when a farmer is producing crop for selling in the market, it is called economic activity but when he is cultivating crop for self-consumption then it is called non-economic activity.

    CONCEPT AND CHARACTERISTICS OF BUSINESS                                                   Business is a wide term. It includes all occupations in which people are busy in earning income either by production or purchase and sale or exchange of goods a services to satisfy the needs of other people with the main objective of earning profit.

    In modern times, business is no longer dealing only with goods or services. cannot be defined in terms of profit only. It has become an integral part of society. In modern times, business includes the following activities.

    “Business is an activity in which different persons exchange something of value, whether goods or services for mutual gain or profit.

 

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