Define the term Business. Discuss the functions of a business man.

 Define the term Business. Discuss the functions of a business man.

"As a institution organized by a person or a group of persons to produce or distribute goods or services with an incentive of earning profit through the satisfaction of the human wants. The elements of risk is also involved in it". Business involves all the human activities which are performed to earn profit. There are various kinds of human activities which include in business. Like purchase. Sale transport, finance and production of goods.

Function of a Business:

Following are the important functions of the business.

1. Risk taking Function

    In a business every moment. There is a chance of loss. For example price of the product may fall suddenly. There is also a chance of property destruction. So it is an important function of a business man that the takes the risk and starts the business.

2. Management

     The basic function of the businessman is to manage the business. Management solves many problems like starting operating, planning staffing and controlling the business. The management has also to provide direction for all the subordinates.

3. Planning

     To organize the business is an important function of a businessman. While organizing the business a businessman has to decide that what work each worker has to perform and also has to fix the responsibility of each worker he has also to distribute the authority for each worker. The business also establishes the relationship between the officers and workers of his enterprise. Because it will increase the production and sale of the product. So profit of businessman can increase due to better organizational planning.

4. Finance Function

    Money, plays very important role in business. Without capital a businessman can not establish and expand the business when a firm has not sufficient amount. It borrows the money from banks and other financial institutions to operate the business. Credit control. Loans, wages purchase and sale discount are the financial functions.

5. Innovative Functions

    Today there  is a stiff competition in the business market innovations is essential for the business advancement. A businessman keeps in view the needs and wants of the consumer. He introduces new goods according the demands of peoples. So he tries to find out new productive techniques and new forms of business organization.

6. Payment of rent wages and Interest

    A businessman hires the other factors like land. Labor and capital to produce goods and services he pays the reward to these factors in the shape of rent, wages and interest. After making the payments, remaining money he will keep in his own pocket as a profit.

7. Production Function

     A businessman combines the factors of production and produces the goods with the object of earning profit. A businessman conducts this process for his won profit.

8. Use of Technology

     A business also use the technology and new methods of production according to the nature of his business it increases his profit.

9. Optimum Combination

     A businessman tries to combine the factors of production in such a way that cost of production should be minimum and profit should be maximum.

10. Improvement

      A  businessman also improves the quality of the product to increase his sale. Otherwise he will suffer a loss.

11. Sales Functions

   It is very difficult job of the businessman because there is a hard competition in each market. A businessman also performs various other duties before selling like grading sorting and packaging.

12. Transportation and Communication Function

     Transportation and communication function is also performed but the businessman. It involves transfer of goods from one hand to another is exchange for money.