Business Makers

The term ‘Business‘ refers to production, purchase, sale and exchange of goods and services on a regular basis with the aim of earning profits by satisfying human wants. It includes all industrial a commercial activities such as mining, manufacturing, trading, transportation, warehousing, banking, insurance and others. Business is an economic activity and it may be carried out either on a large scale or on a small scale. All the activities concerned with the production and sale of goods and services wherein profit is the main object and loss of money is the main risk may be called business.

Economic activities or occupations are of three types:

Business: Business refers to the economic activities which are directed towards producing or acquiring wealth through buying and selling of goods and services. Business is carried on by people to earn an income. Generation of income or wealth involves production, sale and exchange of commodities which human beings want. In other words, business is sale and exchange of commodities which human beings want. In other words, business is concerned with that part of production which is actually exchange and results in mutual benefit to both the buyer and the seller. Manufacturing, mining, trading, transportation, banking, insurance and others are examples of business activities.

Profession: An activity which requires special knowledge and skill and which is under taken to earn a living within a prescribed code of conduct is called profession. The services of lawyers, chartered accountants, doctors are considered as professions. Person’s who render these services are known as professionals. Members of a profession have their own professional association which exercises statutory control over their activities. Professionals are required to bane embalmers of the statutory control over their activities. Professionals are required to be members’ statutory association.

Employment: People who work for others and receive wages or salary in return are said to be in employment. They are know as employees and the persons for whom they work are called employers. There is a relationship of master and servant here. Workers employed in factories, offices, banks, government departments, etc. are in employment. They work as managers, officers, clerks, peons, sweepers, and in various other capacities.

To decide whether a particular activity is an economic or a nor-economic activity, the following points should be considered:

Aim of the Activity: The purpose of the activity is the most important ground for deciding whether an activity is economic or non-economic. The same activity may be economic for one purpose and non-economic for another purpose. The chief purpose of an economic activity is to generate income. For example, when a lady cooks food for monetary gain, it is an economic activity. But if the amen lady cooks food for hers family, it is a non economic activity.

Measurement of Result of the Activity: when the work done is measurable in terms of money, it is an economic activity. For example, services of a maid servant can be measured in terms of money and is, therefore, and economic activity. On the other had, services of a housewife cannot no measured in terms of money and is, therefore, a no economic activity.

Rational Behavior: In the normal course of life, a person desires to earn money in order to satisfy his wants. He seeks to obtain maximum return from his efforts. But work done for emotional reasons is non-economic activity. For example, a businessman wants to produce goods at the lowest possible cost to make maximum profit. On the other hand, a person engaged in religious or social service is willing to spend bother his money and time.

Legal Nature: Both economic and non-economic activities must be legal. Activities which are illegal, though resulting in economic gain, for example, smuggling, black-marketing, robbery and others cannot bane called economic activities. Only those human activities can be called economic activities which are performed in accordance with the laws of the land. Even non-economic activities whether social or religious must conform to law.