M/S. SHARMIN JAMAL
DEPT. OF BBA
ID NO: BBA 027
Definition of Business:
Business means state of being busy in any work. A Business is an organization engaged in producing goods and services to make a profit.
Business may be defined as human activities directed toward producing and distribution of wealth through buying and selling goods.
Business includes all those human activities relating to the production and distribution of goods, services and ideas with a view to earning profit.
The circular Flow Between Business and household:
In the private enterprise system the factor of production are owned by individuals in household. Businesses must pay the member of the householders in order to acquire the factors of production. The householder members in turn receive various types of income to supply the factors of production.
Land labor capitalEntrepreneurship
Page 02 As a further illustration figure and the following step-by-step process provide an explanation of how the private enterprise system operates as given below:
1.Your business needs to hire two employees.
-The factor of production, labor is to be found living in the householders.
-The business purchases the labor by persuading the persons in the household to go to work for an agreed on wage.
2.The business then combines the labor of the employees with natural resources, capital and entrepreneurial skills to produce goods and services.
-The individuals in the households need or want the goods produced...