About Business

Business has been defined variously from different perspectives. The functional definition of business defines it as an activity or series of activities carried out with the purpose of producing utility to satisfy human wants in lieu of profit. The enterprise-based definition of business, on the other hand, construes it as an entity or organization meant for the purpose of organizing resources to produce and sell goods or services to earn profit.

Noticeably, the most important feature of business is to earn profit. For this purpose, the business unit organizes land, labour, capital and organizational structure to produce goods or services in tune with market demand. Business can be promoted by a single individual in the form of a sole proprietorship business or it could be floated as a partnership among different individuals. These days, however, the most successful and largest business entities are floated as joint stock companies where hundred to even millions of shareholders contribute proportionate capital.

Business units are the central units of economic activity. Through production of goods and services and creation or addition of value to existing goods and services business units satisfy economic demand and improve the standard of living of the society.

In modern times, many questions are however, being raised over the ultimate responsibility of business houses. Environmental concern and social responsibility are keynotes requiring special care. Today, managers and CEOs are awakening to the fact that business of business is not just to do business. The ultimate goal can never be profit making, let alone profit maximization through profiteering. Profits are not ends. Profits are the means these days for businesses to achieve growth of shareholders’ equity, to promote internal growth and to empower the society as a whole.

Business, indeed is the business of mankind. It keeps everyone busy so that one can produce what needs to be consumed for staying free.

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Business Category