Meaning of Business

 

Meaning of Business :

A business may be defined as an institution organized and operated to provide goods and services to the society with the objective of earning profit. L.R. Dickson has defined business as a form of activity pursued primarily with the object of earning profit for the benefit of those on whose behalf the activity is conducted. “Business involves production and/or exchange of goods and services to earn profits or in a broader sense, to earn a living.

Profit is not the sole objective of the business. It may have other objectives like promotion of welfare of the workers and the general public. Business activities include production and distribution of goods and services which can satisfy human wants. The term business should be used to convey the same meaning as the term trade simply denotes purchase and sale of goods whereas ‘business’ includes all activities form production to distribution of goods and services.

It embraces industry, trade and other activities like banking, transport, Insurance and warehousing which facilitates production and distribution of goods and services. According to F.C. Hopper “The whole complex field of commerce and industry which includes the basic industries, processing and manufacturing industries, and the network of ancillary services: distribution, banking, insurance transport and so on, which serve and inter penetrate the world of business as a whole” are called business activities.

 

 

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