I. CONCEPT OF BUSINESS
Business is one of the economic activities. In the modern times, business has become one of the most important economic activities and means to achieve material prosperity and human welfare. The systematic development of Business is of paramount significance for achieving desired economic growth and development of economies in the context of liberalization, privatization and globalization.
Economic activities refer to those human activities which are undertaken with the object of satisfying material and economic needs. Economic activities are concerned with production and distribution of wealth i.e. goods and services, for sale to others at a profit. They are influenced mainly by material or economic considerations.
Meaning and Definition of Business:
Etymologically, Business means the state of being busy. In this sense, any economic activity with human beings keep themselves busy can be regarded as business. But such a view is too general to serve any purpose.
In the general sense, business is identified with exchange of goods and services. In this sense, business refers to mere trading i.e. buying and selling of goods. This view is too narrow because scope of modern business is quite wide.
In its practical sense, business refers to all those economic activities which are concerned with the production or purchase of goods and services for the purpose of sale at a profit. In this sense, business includes activities like manufacturing, trading, transportation, warehousing, banking and finance, insurance, advertising, etc.
According to Prof. R. N. Owens “Business is an enterprise engaged in the production and distribution of goods for sale in a market or rendering of services for a price”.
According to L.R. Dicksee, “Business is a form of activity pursued primarily with the object of earning profits for the benefit of those on whose behalf the activity is conducted”.