Definition:
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 element 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. When include in business, like purchase, sale transport finance and production of goods.
IMPORTANCE & SCOPE OF BUSINESS:
In there present age production and distribution activates are in creating day by day. With the rise in the world population standard of living is also improving due to business activities. Today the man is enjoying all the facilities of life due to the business efficiency. But without "Business organization". we can not solve the business problems.
"Business organization" consists of the skillful activities of the businessman. Which are helpful for promoting the trade, commerce and and industry, Business organization plays very effective role for the business development. We can discuss its importance as under.
1. Production of goods.
Business organization is very useful for the production process of goods and services it increases the efficiency of various section.
2. Reduces the Cost:
Business organization principles are used to minimize the cost production. So the profit of the business increases.
3. Distribution:
Marketing and distribution problem is also being solved by the business organization.
4. Finance Function:
It provides a common link between the various factors of the business activities. So effective co-operation amount the various factors increases the profit of the enterprise.
5. Saves the Time:
Due to business organization we can save our time which is more precious in the present age.
6. Minimum wastage:
Business organization reduces the wastage of material and other expenditure. So rate of profit increases.
7. Secretariat Function:
Business organization teaches us the principles of office organization. It tells us the best way of performing the secretarial function.
8. Finance Management:
Business organization also guides the businessman that how he should meet this financial needs and expand the business.
9. Makes the Businessman Efficient:
Business organization has enabled the businessman to conduct the business affairs efficiently it also provides the solution of many problems.
10. Fixes Responsibility:
If fixes the responsibility of every individual in a definite manner. It also introduces the scheme of internal check with works automatically.
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