Subject: Business Studies
Every human being performs different types of activities for the satisfaction of his wants and desires. Many of these wants and desires are inherent, as they are biological compulsions and instincts for his survival whereas other types of wants and desires are boundless and give satisfaction is fulfilled. So, all human beings must perform different types of activities for their survival and satisfaction.
The term 'business ‘refers to all the economic activities carried out by people and organizations for generating incomes. It is concerned with producing and distributing goods and services for earning a profit. It is a regular process of exchanging goods and services which involve risk and uncertainty. In fact, business is an economic activity aimed to fulfill the need and wants of customers through the supply of goods and services for their satisfaction.
According to L.H Haney, "Business may be defined as a human activity directed towards producing or acquiring wealth through buying and selling of goods."
According to James Stephenson, “Economic activities performed for earning profits are termed as the business."
From the above definitions, it is clear that the business is the economic activity of individuals and organizations aimed to earn profit through the production and distribution of goods and services.
Generally, there are two concepts of the business:
Every human being performs different types of activities to gain his/her wants and desires. Many of these wants and desires are inherent, as they are biological compulsions and instincts for their survival whereas other types of wants and desires are boundless and provide full satisfaction. So, all human beings must perform different types of activities for their survival and satisfaction.
All the activities that human beings perform can broadly be classified into the following two activities:
The activities through which human beings can earn income and generate wealth are known as economic activities. They are basically concerned with the production and distribution of goods and services which are used to satisfy human wants/needs. For example, a clerk works in an office, a worker works in a factory, a shopkeeper sells goods in his shop, etc.
There are three essential features of economic activities:
The human activities which are carried out to satisfy social, psychological and emotional needs are called non-economic activities. These activities are performed for personal satisfaction and are inspired by pleasure, affection, love, charity and other similar sentiments. Such activities are not concerned with earning money.
Differences between Economic and Non-Economic activities
Bases of difference |
Economic Activities |
Non-economic Activities |
Meaning |
They are the activities which are performed for earning money. |
They are the activities that are performed to satisfy social, emotional and psychological needs. |
Propose |
These are undertaken with an economic motive. |
These are undertaken with social or psychological needs. |
Outcomes |
These result in the production and distribution of goods and services. |
These result in personal satisfaction. |
Measurement |
These can be measured in terms of monetary income. |
These are measured in terms of personal satisfaction. |
Some of the characteristics of the business are as follow:
References:
Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal. Business Studies. Kathmandu: Taleju Prakashan, 2067.
Pant, Prem R., et al. Business Studies. Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd., 2010.
Define the concept of business.
The term 'business ‘refers to all the economic activities carried on by people and organizations for generating incomes.
Define the concept of business.
The term 'business ‘refers to all the economic activities carried on by people and organizations for generating incomes. It is concerned with producing and distributing goods and services for earning a profit. It is a regular process of exchanging goods and services which involve risk and uncertainty.
According to James Stephenson, “Economic activities performed for earning profits are termed as the business."
From the above definitions, it is clear that the business is the economic activity of individuals and organizations aimed at earning profit through the production and distribution of goods and services.
Generally, there are two concepts of business:
Explain the concept and characteristics of business.
The term 'business ‘refers to all the economic activities carried on by people and organizations for generating incomes. It is concerned with producing and distributing goods and services for earning a profit. It is a regular process of exchanging goods and services which involve risk and uncertainty. In fact, business is an economic activity aimed at fulfilling the needs and wants of customers through the supply of goods and services through the supply of goods and services for their satisfaction.
According to L.H Haney, "Business may be defined as a human activity directed towards producing or acquiring wealth through buying and selling of goods."
According to James Stephenson, “Economic activities performed for earning profits are termed as the business."
From the above definitions, it is clear that the business is the economic activity of individuals and organizations aimed at earning profit through the production and distribution of goods and services.
Generally, there are two concepts of business:
Write differences between economic and non-economic business.
Bases of difference |
Economic Activities |
Non-economic Activities |
Meaning |
They are the activities which are performed for earning money. |
They are the activities which are performed to satisfy social, emotional and psychological needs. |
Propose |
These are undertaken with an economic motive. |
These are undertaken with a social or psychological needs. |
Outcomes |
These result in the production and distribution of goods and services. |
These result in the personal satisfaction. |
Measurement |
These can be measured in terms of monetary income. |
These are measured in terms of personal satisfaction. |
What are the characteristics of business?
What are the differences between economic and non-economic activities and explain about characteristics of business.
Bases of difference |
Economic Activities |
Non-economic Activities |
Meaning |
They are the activities which are performed for earning money. |
They are the activities which are performed to satisfy social, emotional and psychological needs. |
Propose |
These are undertaken with an economic motive. |
These are undertaken with a social or psychological needs. |
Outcomes |
These result in the production and distribution of goods and services. |
These result in the personal satisfaction. |
Measurement |
These can be measured in terms of monetary income. |
These are measured in terms of personal satisfaction. |
© 2019-20 Kullabs. All Rights Reserved.