Buying and selling of goods and services are known as business or trade. People do business for their livelihood and necessities like food, cloth, and shelter. In simple words, it is an activity we entered to earn a profit. We all are involved in this somewhere in our lives means we all working for our livelihood only whether we do different things like teachers, artists, tailoring everything is a business. If you have a business name, it’s doesn’t mean it is a separate part of the business entity from the owner. If the company had any loss, the owner had to bear the loss or any debt.
A business owner has to be responsible and reliable for everything, whether it is loss or profit. There are three types of enterprises Big Enterprises, Small and Medium Enterprises, Micro Enterprises. For opening a business, there are some steps that everyone has to follow. They are the first company that has to apply to register their firm. The company has to set up the firm’s name, submit every document, and then identify no other company of the same name, making a logo and making a stamp.
Features of business
There are some features of business
- It is an economic activity.
- It is a continuous process.
- Buying and selling of products.
- It is done for-profit motive.
- It involves risks and uncertainties.
- It is creative and dynamic.
- Customer satisfaction is more important.
- Social activity is involved.
- Government control is also involved.
- Optimized utilization of resources.
Objective of business
As you know, the main objective of a business is to earn a profit. But there are also some other objects involved in this. They are to earn a good profit and give a fair amount of money to stakeholders’ investment. Create a new customer in the market and expand your business as much as possible. Making innovative and improvements goods and services for the customers so that they use your products more. Providing employment opportunities for unemployed people. This is increased no of employment in the country.
Giving the good quality of goods and services at reasonable prices. Anyone can afford it easily, and one should avoid unfair means of practices to earn more profit by this we can gain customer trust for the product. We should fair amount of money to employees according to their work without any biases in wages and salaries. One should always provide a better working environment and conditions for employees. A company runs in profit only because of their employees that we should always take care of them and provide job satisfaction.
Types of business
There are many different types of business which are followed below: –
- Sole proprietorship: in this, a company is run by a single person. He will be the only one liable for any loss and will get the whole share of the profit.
- Partnership: in this, a partnership deal finalizes that two or more persons will run the company. This deal can verbal and written. And the profit and loss are divided into a decided ratio or in the ratio of capital that each partner brings.
- Hindu Family Business: in this, each member of the is involved in the business, and coming generations are also forced to do that only. Start from elder to younger, and everyone is involved in this.
- NGO: it is Not for Profit Organization. It is a type of organization made to fulfill a particular object they work to help any needy person.
Widest Range of Activities
Business is one of the widest range activities. It plays a major role in the market, and it has taken a huge place in the market. It the process of buying and selling goods and services. This can be defined as any organization engaged in activities related to commercial, industrial, or professionals. This helps in fulfilling the needs by providing the goods and services accordingly. But it is not an easy task to start up a business, and it requires huge investment and this activity is very uncertain and is better for risk-takers. It is also defined as every individual’s efforts to produce goods and services and earn a profit.
Business can be done on a large scale and on a small scale too. People who have a dream to do their own business can go for small business if he doesn’t afford to do business in large scale and we have many alternatives available with us which help us make our come true. Many alternatives help individuals regard finance.
Savvy More About Business
This activity needs proper planning, and one has to follow the proper procedure for making their business grow. Whether one is doing the business on a large scale or small scale, he has to every activity with per planning. One has to make plans. He has to fix what he wants to achieve, he should be clear about his objectives, and he has to make the strategies for achieving these objectives. One has to do some documentation work for letting his business be incorporated.
Business is an activity by which people want to generate income and earn profits. But not everyone wants to do business for earning profits only, some want to for the society, for providing them with the facilities, for the mission of charity, so there is a choice available with us whether we want to go for non-for-profit organizations. This activity is of different types, and everyone has their interest to engage in it accordingly.
A business’s sole objective is not only to earn a profit. They have some responsibility towards the people around them that are they should take care of that product they are making is not harmful to anyone either a human being or environment. They should take care of their employees and always try to help them in any way. They should also check that any illegal thing is not happening in their company. A businessman should always take care of everything. To be rich and successful. Business is an essential activity, and it had a vast contribution to the country’s economy.
The business contributes to the growth of the country. Almost everyone wants to do the works on their command and ideas to do it by starting their own business, and it provides multiple benefits. It is very beneficial as it gives ample opportunities and increases employment rates. It develops our country as it creates positive effects on the environment. It is valuable as it fulfills the needs of every individual in every aspect and helps in development.