Business Organization

BUSINESS ORGANIZATION

Introduction

Business Organization consists of two different word business and organization.

Business :- Business includes all those economics activities which are concerned with earning profit and creating wealth through the production and exchange of goods or services . It concerned with production and distribution of goods. Examples are a shop, a factory, a transport company, a bank etc.

Activities :- The work done by human beings to satisfy their wants is known as activity.

Human activities consists of two types
Economic Activities and
Non Economic Activities

Economic Activities are like

Business

Profession

Employment

Non Economic Activities are like

Religions

Social

Parental

Patriotic

Economic Activities:- The activities by which human being can earn and generate wealth.

For examples Teacher teaches in a school, A clerk works in a office.

Essential features of economics activities are

Ø Objectives of economic gain

Ø Creation of utilities through provisions of goals

Ø Satisfaction of other people need

Non Economic Activities:- The activities which are carried out to satisfy social, psychological and emotional needs. These activities are not used of earning purpose. For examples A man helps for crossing road for blinds people, A woman goes for temple everyday, A rich man donates money for flood relief fund.

Definitions

L. H. Haney:- Business may be defined as a Human activity directed towards producing or acquiring wealth through buying and selling goods.

R. N. Ownes:- Business is an enterprises engaged in the production and distribution of goods for sale in market or rendering services for price.