A business (also known as enterprise or firm) is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a company, although that term also has a more precise meaning.
The etymology of "business" relates to the state of being busy either as an individual or society as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope — the singular usage to mean a particular organization; the generalized usage to refer to a particular market sector, "the music business" and compound forms such as agribusiness; and the broadest meaning, which encompasses all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate and complexity of meanings.
Business refers to an economic activity in which people regularly engages in production or purchase of goods for sale, or exchange of goods or supply of services to satisfy the needs of other people with an ultimate motive to earn profits. The word business is derived from the word 'busy'. Thus, "business" relates to the state of being busy. Business may be in the form of Sole proprietorship, where the owner of the business has the sole authority over the establishment. Partnership, where two or more individuals come together to form a joint business. Corporation, can be organized for profit or service, but is owned by multiple shareholders and is carried by a board of directors and in addition to this we find state owned corporates also. Cooperative, for profit or non profit, is a limited liability entity where shareholders do have decision making authority, they may be consumer cooperatives or worker cooperatives.
Economic activity: It is an economic activity because the object around doing it is always to earn money or livelihood and not out of love, affection, sympathy, etc.
Earning Profit: Purpose of doing business is to earn income by way of profit. No business can survive for long without profits. Possible efforts to maximize profits, by increasing the volume of sales or reducing costs is always seen.
Uncertainty of return: Returns in business is always uncertain. The capital invested may return in the way of profit or may be completed vanished in the way of losses, this is where the future of the business was decided whether it continues or shutdowns.
Risk: Risk is always involved in here in the form of losses. It is caused by some unfavorable or undesirable events.
Profession is an economic activity in which people are engaged to earn means for their livelihood by using their Skills and special knowledge that is acquired from many studies and practice in a particular field. It is obviously an economic activity since the ultimate goal for taking up this is to earn some money.
Those who are engaged in a profession which is an economic activity are called as professionals. Professions are generally those who are lawyers, doctors, chartered accountants, etc. Their activities are subject to the guidelines or codes of conduct laid down by concerned professional bodies.
Economic activity: Profession is considered to be an economic activity because it is undertaken with the object of earning money or livelihood and not because of love, affection, sympathy or any other sentimental reason.
Good conduct: When the Professionals are more skilled and experienced with regard to their work they earn good conduct which in turn gives them an opportunity to earn the maximum reward. No conduct; no work.
Scope for maximising...