Concept of business

Business is an important activity of human beings. The word' Business' literally means 'a state a of being busy'. All economical activity undertaking with a view to earn profit thus the satisfaction of human wants can be term as a business. Involves regular production, distribution and exchange of goods and services with an objective of earning profit by satisfying the unlimited wanted of human being. All business activates are meant for earning profit by satisfying consumers. Business has got two concepts, they are

a.    Traditional concepts:          The traditional concepts explains that the business of business is to earn profit thought production and marketing of products may be of different types for example physical goods, services, ideas  and maximize only profit as per traditional concepts

b.    Modern concepts:                         consumer satisfaction is the central point of modern concepts of business. Profit can be earned by maintaining social responsibility. It survives to include every aspects of human civilization. It views the modern business as a socio-economic institution which always responsible towards the society.

Various experts are scholars have defined business differently. Some popular definitions, which highlight the meaning of the term, "business" are given below.

·         According to C.F. Abbot, "Business without profit is not business"

·         According to Dictionary of Business and Finance, "Business may be defined as any and all of those activities connected with the production and exchange of goods or services and the financial affairs connected with the these activities."

·         According to L.H. Hanery, "Business may be define as human activities directed towards production or acquiring wealth through buying  and selling goods."

With helps of above definition, business can be taken as an economic activities concerned with the production and sale of goods and services to the society so as earn profit by satisfying human wants.