Saturday, March 13, 2010

Functions of business

FUNCTIONS OF BUSINESS
A business has to perform a number of functions in order to achieve its objectives. One of the major functions of business is produce goods from raw materials. Similarly transporting goods from place of production to the market is also another function of business. Hence, the major functions of business can be identified as follows:

1 Organizing Function : One of the major functions of business is organizing function. Man, machine, materiaks, machines and money are essential factors for any business. So organizing function accumulates and coordinates all the necessary factors of business. Proper organizing function is helpful in the smooth running of the business and helps to achieve its objectives.
2 Financing Function : Finance is the life-blood of any business. The availability of factors of production depends upon the availability of finance. So every business needs finance for its success. Hence under this function required capital is estimated, accumulated and properly utilized. A proper capital structure according to the size and nature of the business is essential for the success of the business.
3 Production Function : Production functio is another important functiion of business. Converting raw materials into finished products to satisfy human wants by creating utility is known as production. Under this function raw materials and semi-finished products are processed and assembled to create utility. Hence the next important function of business is to create utility for satisfication of the consumers by production of goods.
4 Marketing Function : The function of business is not complete with the production of goods and services only. The main goal of production is to satisfy human wants through the consumption of goods and services. Hence marketing function helps to transfer goods and services from the producer to the ultimate consumer. Marketing functions can be divided into concentrating and dispersing which include buying, selling, transportation, storage, risk taking, market information, etc.
5 Employment Fnction : The next important function of business is to provide employment oppurtunities is the country. Every business requires a large of manpower to perform their activities. So they are helpful in solving employment poblem of the country by providing maximum employment oppurtunities. Business sectors is possibly the largest employment generating sector in the world.
6 Research and Development : The progress in anky field is the result of research and development. In business also research and development is essential for the development of new technologies and new products. By research new production techniques, interest of the consumers, needs of the market, new market, etc. can be iderified. Hence through research and development business can be increased.
The success of any business depends upon the satisfication of the consumers. Hence giving the priority of consumer satisfication the above funcitons of business must be conducted efficiently in order to run business successfully.

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