Business means state of being busy or engaged in any work. Any kind of legal activities for the intention to earn profit is called business. The word ‘Business’ is come from the English words ‘Busi+Ness’ that means business is concerned to all human activities with earning profit.
In general sense: In general meaning business is the legal process of production and purchasing and selling to earn profit.
In broad sense: Business is related all kinds of legal works of producing, marketing and exchanging products and services with the intension to earn profit.
From the functional point of view, the business is related to an equation that is as follows:
B= ΣIndustry + ΣCommerce + ΣDirect Service
So business is the form of three types of works such as:
- To produce products and distribute services.
- Purchasing and selling of products and services.
- Related works of producing and marketing the products and services.
Many scholars define the business on many perspectives. Some of these definitions are as follows:
- Lewis H. Haney Said, “Business may be defined as human activity detected toward producing or acquiring wealth through buying or selling goods.”
- R. W. Babson said, “Business includes those human activities relating to the production and the distribution of goods, services and ideas with a view to earning profit.”
- B. O. Wheeler said, “Business is an institution organized and operated to provide goods and services to the society under the incentive of gain.”
- R. H. Hodgetts said, “Business is an organized approach used by individuals for the purpose of providing goods and services to mankind for a profit.”
- According to Peter F. Drucker, “Any organization that fulfils itself through marketing of product or service is a business.”
- According to Urwick and Hunt, “Business is any enterprise which makes, distributes or provides an article or service which other members of the community need and are able and willing to pay for.”
- B. B. Ghosh said, “Business denotes human activities which produce or acquire wealth through buying or selling of goods.”
- Prof. Norman Richard Owens said, “Business means an enterprise engaged in the production and distribution of goods for sale in a market or the rendering of services for a price.”
- According to Prof. Y. K. Bhushan, “Business may be defined as the organized production or sale of goods undertaken with the object of earning profit through the satisfaction of human wants.”
- According to skinner and Ivancevich, “Business is the exchange of goods, services or money for mutual benefit or profit.”
From the above definitions some characteristics of business can be identified. These are as follows:
- Business is involved with the intention of earning profit.
- Business is to increase the wealth and welfare of the society.
- Business involves in creating the demand and the needs of the human being.
- Business is to produce and purchase and sell of products and services to the consumers.
At last ere can say that, to fulfill the needs of human, to earn profit, products and services are produced, the produced products are distribute to the consumers or marketing activities and direct and indirect marks related to marketing and all legal economic works are treated as business. From this sense Gloss and Baker said, “Business is basically an activity of people working singly or with other for his purpose of producing and selling the goods or service that our country requires.”