NATURE AND SCOPE OF BUSINESS
1. CONCEPT OF BUSINESS
In its literacy sense, the term business means the state of being busy. Technically, the term business is defined as all the commercial and industrial activities that provide goods and services to the people and are undertaken for profit. For example, a manufacturer who converts raw material into semi finished or finished goods , a person who is engaged in fishing, poultry, mining, farming with the sole objective to earn profit are carrying on the business activities.
Activities excluded from business:
1) Social Service Activities: There are certain human activities which do not seek profit. They are organized and operated with the sole object of rendering social service to the society For example, setting up free hospitals, free educational institutions, provision of free legal services etc are provided by certain organizations purely for social benefits to the society .
2) Personal Consumption Activities: Similarly, all the activities which are concerned with the production or purchase of goods and services for personal consumption fall outside the scope of business.
3) Religious and other activities: All religious and other activities like offering of prayers or engaging oneself for freedom of country or showing love and affection for the family members and taking them to dinner etc are undertaken not for earning profit
4) Illegal Activities. The economic activities to be included in business must be legal If a person earns money through smuggling or sale of heroine, or adulteration of goods etc. these activities being illegal and anti-social are excluded from the study of business
Definitions and Characteristics of Business
The term business' has been defined differently by various writers. According to Urwick and Hunt, "Business is any enterprise which makes, distributes or provides any service which other members of the community need and are within to pay for it". In the words of Davis,...