You are getting...
- Scope of Business
- Subject of Business
- Nature and Scope of Business
Although trade and commerce seem to be generally the same. But, the scope and the meaning range of the word 'business' is much broader or wider.
Business is the production, distribution, and support of goods and services for the purpose of making a profit.
In the case of distribution, buying-selling or exchange of goods is considered the main job. Other functions in a business are considered as the productive exchange support system or functions.
So the business can be represented by the following equation:
∑B= ∑I+ ∑T+ ∑AT
Here,
B= Business
I= Industry
T= Trade
AT= Auxiliaries to Trade
We know that business is considered to be a combination of industry and trade. But, nowadays in business, direct service to the customer, buying, and selling are considered to be important economic activities too.
In general, although these are considered a profession, the work of these independent professionals can be considered a business.
So the scope of business can be divided into three main parts and these are...
1. Industry:
The process by which natural resources are extracted and utilized for human consumption is called industry.
Due to the differences in the process of production and effort, the industry can be divided into the following sub-categories...
A) Genetic Industry: The industry in which the produced material is used for regeneration or production is called the genetic industry. Such as nursery, hatchery, poultry farms, etc.
B) Extractive Industry: The industrial effort by which resources are extracted from groundwater or air is called the extractive industry. Mineral extraction, fishing is such industry.
C) Constructive Industry: The industrial effort through which roads, bridges, dams, buildings, etc. are constructed is called constructive industry.
D) Manufacturing Industry: The manufacturing industry is the process of making raw materials or money-making products in various processes with the help of labor and machinery into suitable products for human consumption.
Such as the weaving industry, steel industry, etc. Such industries can be divided into analysis, compound, process-based, addition, demo, etc.
E) Service Industry: The industry that is engaged in making people's lives easier and more comfortable is called the service industry. gas, electricity, telephone, etc. are included in these industries.
2. Commerce:
Commerce is the sum of all work done to remove the barriers that arise in the way of reaching the raw materials and semi-finished goods to the next producer and the actual consumer of the goods that are produced in the industry.
Thus trade is associated with the distribution work as an important part of the business. The points covered by the trade are as follows...
A) Trade: The act of buying and selling goods (including services) for the purpose of making a profit is called trade.
Such exchange or purchase-sale removes the personal barriers to transfer of the ownership of the product distribution. Trade can be divided into the following sections:
==> Home Trade: The buying and selling process that takes place within the geographical boundaries of a country is called Home Trade.
In this case, both the buyer and the seller are residents of the same country. According to nature, it is divided into the wholesale and retail business.
==> Foreign Trade: Foreign trade is the act of buying and selling between two countries or between merchants of two countries.
There are three types of such trade and they are import, export, and re-export.
B) Auxiliaries to Trade: There are financial, risky, structural, temporal, and promotional barriers in the smooth running of the sale and purchase process.
In order to remove such barriers to the exchange of goods, It requires the cooperation of banks, insurance, transportation, warehousing, marketing, expansion, etc., respectively.
Institutions that are created to perform all these tasks for the purpose of making a profit are also naturally covered by the business.
3. Direct Service:
The doctors, lawyers, engineers, etc., who are engaged in independent professions, directly they sale services for the purpose of earning money. Their work is generally considered to be a business investment and in fact, it is considered a profession or art.
However, a few doctors can form a clinic business or a few lawyers can form an attorney firm or engineers can form an engineering firm which is come for a good reason as a direct service seller under the business.
In conclusion, business is the sum of a wide range of economic activities in the current world civilization. production, distribution, and additional activities for the purpose of making a profit are directly and indirectly covered by the business activities.
The true fact is that excluding business activities, people's economic activities cannot be considered at present.
