Core Concept of Business

• Businesses produce most of the goods and services that we consume.
• They employ most of the working people in the world.
• Profit from business is paid to owners and stockholder. Taxes on business help support govt. at all levels.
• Business is an economic activity.
• All business activities are economic activities but all economic activities are not business activities.

• Business is an organization that produces goods and services to earn profits.
• It is the production and distribution of goods and services to make a profit.
• Every business transaction is effected with an intention to make profit.
• Business is a human activity directed towards producing or acquiring wealth through buying and selling of goods (L.H. Haney).
• Business is an organization which makes, distributes or provides any article or service which other members of the community need and are able and willing to pay for it (Urwick).
• Goods are tangible. Pen and marker and white board
• But services intangible but needed to produce goods. Examples are banking and insurance services.
• Business means creation of utility for the satisfaction of human wants through recurring exchange.
• Business creates different types of futilities such as form, place, and time.