What is a Business? definition of business and Scope of business. Business could be a term with a really wide which means. It refers to an activity of individuals operating for the aim of manufacturing and distributing product and services at a profit. An enterprise creates utilities by production of products and services to satisfy human needs. Simply, business is an activity of individuals directed towards satisfying human needs at a profit. In broad sense, business is that the activity preformed by a private or a bunch of individuals with a read to earn profit among the govt. rules and rules. Numerous authors have defined business in several ways that. a number of them are quoted below-
What is a Business?
Definition of Professor Owen, “Business is any enterprise engaged in production and distribution of goods for sale in a market or rendering services for a price.”
Definition of Keith Davis, “Business may be defined as any form of commercial activity to satisfy the economic wants of people at a profit.”
Skinner and Lvancevich said, “Business is the exchange of goods, services or money for mutual benefit or profit.”
As a final point, business while not profit or loss is not any business. It’s the full advanced field of trade, commerce, business and therefore the network of auxiliary services, distribution, banking, insurance, transport so on that serve and penetrate the globe of business as an entire.
Scope of Business or, Nature of Business
The scope of business is very comprehensive. It encompasses all human activities, which tend to satisfy needs and wants of the human beings living in a society. A large part of the business is concerned with providing the final or finished products or goods to the desired people.
Business is universal and everywhere. It is essential to ensure the production and distribution of goods and services to satisfy the economic wants of people at a profit. The nature and scope of business are changing very quickly. The people, who are engaged in business, must have to cope with the changing environment because the people’s attitudes, habits, testes, likes and dislikes, norms, beliefs, values, perceptions and motives are changing with the change of time.
Profit earning cannot be the sole motive of business activity. Businessmen do have a social responsibility too that must be met. Business organizations produce goods and services to generate profit but such activities create impact on society as well as the whole community. The responsibility of businessman is to provide the goods and services in a way which is not harmful to the society.