Since a business has to balance a number of needs and goals, it requires multiple objectives
Market standing : Business can survive for a longer period only if it is able to capture a big share in the market and has market standing.
Innovation : Means developing new products and their multiple uses, Old customers can be maintained and new can be attracted by innovation only.
Improving productivity : Every business enterprise must aim at greater productivity by making optimum use of available resources.
Earning profit : One of the objectives of business is to earn profits on the capital employed. Every business must earn a reasonable profit to survive and grow.
Optimum use of physical and financial resources : Every business requires physical (plant, machine, office etc) and financial resources (money or funds) to produce goods & services, The business enterprise must aim to use them efficiently.
Workers performance and attitude: Every business enterprise must aim at improving its workers performance and creating positive attitudes of workers. It will boost the morale of the employees.
Social Responsibility: A business is a part of society and so it must meet the expectations of the society. It can set goals in the areas of the environmental protection, Supply of desired Quality of products, employment generation etc.
Classification of Business Activities
Primary Industry :- The primary industry includes those activities through which the natural resources are used to provide raw materials to other industries. Primary industries are of two types.
Extractive : Industry refers to those industries under which something is extracted out of the earth, water or air e.g., coal, iron, gas etc.
Genetic :- Refers to those industries under which the breed of animals and vegetables are improved and made more useful e.g., poultry farms three planting etc.
Secondary Industry :- Under this industry new products are manufactured by using the previously produced things e.g., producing cotton is a primary industry and manufacturing cloth out of cotton is a secondary industry. It is of two types.
Manufacturing :- These industries convert raw materials or semi finished products into finished products e.g., paper from bamboo, sugar from sugar cane. It is further be divided into four parts.
Analytical :- Different things are manufactured out of one thing e.g., petrol, diesel, gasoline out of crude oil.
Processing : Those industries wherein useful things are manufactured by making the raw material to pass through different production process e.g., steel from iron are.
Synthetic :- Many raw materials are mixed to produce more useful product e.g., paints, cosmetics.
Assembling :- Where in the parts manufactured by different industries are assembled to produce new and useful product e.g., computers, watches etc.
Construction Industry :- Such types of industries constructions of roads, bridges, buildings etc. are covered.
Tertiary or Service Industry :- Includes those services which help business to move smoothly e.g. transport, bank, Insurance, storage and Advertising.
COMMERCE :-
Meaning : Commerce refers to all those activities which are concerned with the transfer of goods and services from the producers to the consumers. It embraces all those activities which are necessary for maintaining a free flow of goods and services. The functions of commerce
are as follows.
Removing the hindrance of person.
Transportation removes hindrance of place.
Storage and warehousing activities remove the hindrance of time.
Banking removes hindrance of finance.
Insurance removes hindrance of risk.
Commerce includes two types of activities.
Advertising removes hindrance of information.
CBSE Business Studies Class XI ( By Mr. Kailash Gururani )
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