Business is an activity that deals with the systematic production of goods and services for a profit. This is done in order to satisfy human needs and wants. Moreover, business is always accompanied by an element of risk. Hence, it is important to know the basics of business.
A business can be a sole proprietorship, a partnership firm, a joint stock company or a Hindu Undivided Family. But the main objective of every business is to earn profit. Profit is the reward of hard work and effort. Hence, every business must strive to earn profits in order to survive.
As a business, you must have a vision. In addition, you must have a set of values. These values should be able to guide you in the conduct of your business. Besides, you should have an understanding of your organization’s external environment.
Lastly, you must also understand your organization’s functions, cultures, and behavior. Once you understand these aspects, you can then define the difference you hope to make in the world.
The main characteristics of a business are regularity and consistency. It is essential to have a vision, and you should be able to provide a good quality at affordable prices.
Moreover, you must also have a finance function. This is because the lifeblood of a business is its finance. Finance comes from various sources. You should be able to identify which source is responsible for the finance of your business.