Introduction to Commerce
Every human activity is carried on to satisfy their needs. All these activities may be classified in to two categories: Economic activity and Non- Economic activity. Economic activity is undertaken with the purpose to earn money or acquiring wealth. These activities involve production and distribution of goods and services. Examples: Business, profession and Employment. Non-economic activities are undertaken not for earning money but for personal satisfaction. Examples: A housewife looking after her family, A person visiting a temple are the examples of non-economic activities.
1.Introduction to Commerce
Difference between Economic and Non- Economic Activities. Basis Purpose Reward Economic Activity Profit Non-Economic Activity To satisfy personal, social, religious and patriotic beliefs. Not expected to create any financial reward Emotional and sentimental Consideration Serving Family and society For personal satisfaction and Family need Do not result in creation of wealth It satisfy psychological need
Creation of money or income Consideration Rational and Economic consideration –Using Land, Labour, Capital, Enterprise Examples Business, Profession, Employment Necessity It is necessary for livelihood Result Satisfaction Creation of wealth It satisfy Economic need
The term business is derived from the word ‗busy‘. Thus, business means being busy. However, in a specific sense, business refers to any occupation in which people regularly engage in an activity with a view to earning profit. ―Business refers to the set of organized activities for production and exchange of goods & services with an objective of earning profit.‖ ―All the activities involved in the production and sale of goods and services may be classified as a business activity‖ ―Economic activities performed for earning profit are termed as Business‖ Business maybe defined as human activity directed towards producing or acquiring wealth through buying and selling of goods.
Characteristics
1.Introduction to Commerce
Difference between Economic and Non- Economic Activities. Basis Purpose Reward Economic Activity Profit Non-Economic Activity To satisfy personal, social, religious and patriotic beliefs. Not expected to create any financial reward Emotional and sentimental Consideration Serving Family and society For personal satisfaction and Family need Do not result in creation of wealth It satisfy psychological need
Creation of money or income Consideration Rational and Economic consideration –Using Land, Labour, Capital, Enterprise Examples Business, Profession, Employment Necessity It is necessary for livelihood Result Satisfaction Creation of wealth It satisfy Economic need
The term business is derived from the word ‗busy‘. Thus, business means being busy. However, in a specific sense, business refers to any occupation in which people regularly engage in an activity with a view to earning profit. ―Business refers to the set of organized activities for production and exchange of goods & services with an objective of earning profit.‖ ―All the activities involved in the production and sale of goods and services may be classified as a business activity‖ ―Economic activities performed for earning profit are termed as Business‖ Business maybe defined as human activity directed towards producing or acquiring wealth through buying and selling of goods.
Characteristics