UNIT 1
CCSU BBA NOTES
Characteristics of Business Organization
1. Economic activity: Business is the production and distribution of goods and services for profit. It offers employment opportunities in a variety of areas, including banking, insurance, transportation, businesses, and commerce. It is an economic activity focused on producing utilities to satiate human needs.
It offers the society a means of generating cash. By creating job possibilities, business contributes to the expansion of the economy. It promotes the nation’s industrial and economic development.
2. Buying and Selling: Trading is every business’s primary activity. The company entails purchasing raw materials, stationary, plants, machinery, real estate, etc. However, it also sells the final goods to customers, wholesalers, retailers, etc. Various commodities and services are made available by business to the various societal segments.
3. Continuous process: Business is a continuous endeavor. Production and distribution of products and services are ongoing processes. A single trade cannot be referred to as a business. Regular operations are necessary for a business to develop and generate consistent profits.
To achieve a competitive edge, businesses should consistently engage in research and development operations. The business firm’s profitability can be increased by using a continuous improvement approach.
4. Profit Motive: Profitability of a business is determined by it. It is the discrepancy between the business’s revenue and expenses. The main objective of a business is typically to make as much money as possible through the production and selling of goods and services. A return on investment, that is. All company actions are driven by the desire to make a profit.
To survive, grow, and expand the firm, profit is necessary. It is obvious that any company exists to make a profit. Although businesses have several objectives, making money is always their top priority. It is essential to fostering economic expansion.
5. Risk and Uncertainties: Risk is characterized as the impact of uncertainty on a company’s goals. Every business has some level of risk. The two forms of risk that a business is subject to are insurable and non-insurable. Unpredictable risk is insurable.
6. Creative and Dynamic: The nature of modern business is creative and dynamic. A business must develop innovative strategies, methods, and concepts for the manufacture and delivery of goods and services. It refers to bringing anything in a novel, creative, and fresh way.
Because the economic, social, and technological environment in which businesses operate is continuously changing, one must be inventive. To meet the consumers’ expanding wants, companies should release new items.
7. Customer satisfaction: Business has transitioned from a traditional to a modern era. Nowadays, businesses embrace a customer-focused strategy. All commercial endeavors ultimately strive to satisfy their customers.
The goal of contemporary company is to please clients by offering high-quality goods at competitive prices. It places equal emphasis on customer pleasure and profit. Only when customers receive genuine value for their money are they satisfied.
The goal of the company is to attract and keep clients. The key component for a business’ success is its capacity to recognize and delight its customers.
8. Social Activity: A socioeconomic activity is business. Society and business are interconnected. Social responsibility is an area in which modern business operates.
Due to its obligations to society, business depends on a number of social groups, including creditors, employees, investors, and customers. Business serves a vital social purpose and satisfies social demands by providing items to diverse societal segments. For a business to operate properly, it needs the backing of several societal groups.
9. Government control: Government regulation applies to business organizations. They are required to abide by laws and norms that have been passed by the government. By maintaining effective monitoring and control and periodically drafting and amending laws and regulations, the government makes sure that business is handled for the benefit of society.
10. Optimum utilization of resources: Business facilitates optimum utilization of countries material and non-material resources and achieves economic progress. The scarce resources are brought to its fullest use for concentrating economic wealth and satisfying the needs and wants of the consumers.
INTACTONE
CCSU BBA NOTES
CCSU NOTES