What do you mean by Business? State the Features and Kinds of Business

What do you mean by Business

Concept of business

To start up a new commerce venture is always a challengeable undertaking which requires more time and money. The concept of Business may be organized in various forms, depending on their size, nature and need for resources. Legal Framework of the economy also plays a significant role in the choice of form of ownership. The main motto of every business is to satisfy and get more number of customers in a long term period.

One must understand What is business, role of business idea and plan, what business strategies can be used to develop the business, what are all the factors needed to start a business, who will collect them and puts them to proper use.

So, it is must to find the answers for all the above mentioned questions. Once figure out the answers, then starting a business is so simple task.

The first and foremost step of business is to generate idea which is a abstraction of a potential commerce enterprise. The business man has to renovate all the business ideas into business prospect successfully. The success of a particular business depends highly with the assimilation of different units of a venture like production, manufacturing, finance, marketing, sales, technical, purchase, administration etc. Based on the concept of Business, there are four factors which should be identified appropriately.

  1. Land
  2. Labour
  3. Capital
  4. Organization

It is Obvious that factors of production cannot produce unless they are given proper direction and a system to operate in.

Features of Business

The following are the most important Features of Business. They are

  1. To identify and satisfy the prospective customers.
  2. To make use of all the resources say land, labor, capital, organization in an effective way.
  3. Get huge profit and Goodwill.
  4. Aim to carry out long term business.
  5. Creating demand for the product among the customers.
  6. Meet all the customer’s requirements
  7. Demand and supply should get balanced in all the way.
  8. Risk may arise from known as well as unknown market conditions, even climatic conditions.
  9. Business has direct link with political influences.
  10. Must follow some Ethical codes and hence it should be socially responsible too

Kinds of Business

There are various kinds of business where one can use economic resources to produce goods and a service with the main objective is to satisfy the customers. In return they can enjoy profit, goodwill, brand image etc. The basic kinds of business are service business (Schools, banks, insurance) which cannot be physically seen but can enjoy the services and get satisfied, merchandising business (make bulk purchase and sell it into nearby shops say petty shops, retail stores at higher price and earn high profit), manufacturing business (purchase of semi finished goods and sells to those who are in need of it say raw materials, which will go through one more process to get finished). But The Business is divided major into three classifications. They are

  1. Private Sector-(i) Sole Proprietorship says Individual business, (ii) Collective-Partnership, Co-operative Business
  2. Joint Sector Business
  3. Public Sector Business- (i)Company, (ii)Corporation, (iii)Department

Hence, the success of every business depends largely on its organization, and the form of ownership is a significant aspect of any organization.