C

ONC
EPT
SINB
USI
NES
S
H
uma
nAc
ti
vit
ies
T
heacti
vit
iesun
der
tak
enbyh umanbei
ngsarekno
wna shu
man
a
ct
ivi
ti
es.Itca
nbedefi
nedassomet
hin
gthatpeo
pl
ed oorc
aus
e
t
ohap
pen.Inot
herwor
ds,fu
nct
ions
,t
asksorwor
kdonebyhu
man
b
ei
ngover
timef
orach
ievi
ngcer
tainpur
pos
eiscall
edthehu
man
a
cti
vi
ties
.3
Tho
sewor
kswhi
charep
erf
or
medbyhuma
nbei
ngino
rde
rtosat
is
fy
th
eirnee
dsar
ek n
ownashumanact
ivi
ti
es
.
Al
lh u
manac
ti
vit
iesmaybebr
oad
lydiv
ide
dint
otwocat
ego
ri
es:
(
i) Ec
ono
mic a
ct
ivi
ti
es
(
ii
)No
n-E
con
omi
cac
ti
vi
ti
es
1
.Busi
nes
s
1
.Lei
sur
eti
mea
ct
ivi
ti
es
2
.Prof
es
si
on
2
.Fami
lyob
li
gat
io
nac
ti
vi
ti
es
3. E
mpl
oyme
nt
3
.Re
li
gi
ous&c
ul
tu
rala
ct
ivi
ti
es

4
.So
ci
alwe
lf
ar
eac
ti
vi
ti
es
E
con
omi
cAc
ti
vit
ies
Eco
nomicact
ivi
tyi
stheact
ivi
tyofma
king
,pro
vid
ing
,pur
cha
si
ng,
orsel
linggoo
dsprserv
ice
s.
Anya c
tio
nt ha
tinvo
lve
sp r
odu
cin
g,di
str
ib
uti
ng,orco
nsu
ming
pr
oduc
tso rse
rvi
ce
si saneco
nomica
cti
vi
ty.
Anya c
tiv
iti
esinv
ol
vingmoneyorth
ee xc
han
geofpro
duc
tsor
s
erv
ice
sareeco
nomica
ct
ivi
ti
es.
F
orinst
anc
e,ru
nn i
ngasmal
lbus
ine
ssi
sag
rea
tex
amp
leo
f
e
co
nomicac
ti
vi
ty.
O
bje
cti
veso
fEc
ono
micAc
ti
vit
ies
Prof
itE arni
ng:
Busi
nessisas etofactivit
iesu nd
erta
kenwi t
ht heprospectofsa
le
fo
rt hepurpos
eo fear
n i
ngap rof
it
.P r
ofi
ti stheextrai nco
meo v
er
theexpense
s.T hemainobjec
tiveofanybu s
ine
ssistoe arnap ro
fi
t.
Prof
itg uar
antee
sac onsi
ste
n ts t
reamofc ap
italfort he
moder
nisati
ona n
dau g
men t
ationofbusi
nessact
ivi
tiesint hefutu
re.
MarketS har
e:
Thecreatio
no fgoodands at
isfact
ionofthen e
edso fth ecust
omer
isac ruci
alp ur
poseoft heb usi
ness
.S otog e
neratep rofi
ta n
d
demand,theb us
ine
ssmu stsu ppl
yp r
emiumq ua
lityan dg i
vev a
lue
fo
rmo neyp rodu
cts
.
Innov
ation&U til
isati
ono fR esour
ces
:
Inno
vationn o
rmall
yme anst oc ha
ngep r
ocess
esorc reatingmore
ef
fect
ivep roc
esses
,p ro
d u
ctsa ndideas
.N owad
ays,b usines
si s
ever
-changi
n gandd ynamic
.T okeepu pwi t
ht heg rowing
co
mp e
titio
nab ussi
ness
ma nhast ointr
odu
cee f
fi
cientd e
s i
gn,lat
est
tr
e n
ds,upgrade
dma c
hinery,newt ech
niqu
e s
,etc
.L argecorpor
ati
ons
inve
stah umongo
usa mounto fcapit
alint hei
rr esearch&
deve
lopmentd ep
art
men ttob oostinno
vatio
n.
Incr
easingP ro
duct
ivity:
Prod
uctivi
tyi sascalet omeasuretheeffic
ienc
yo ft heb us
sin
ess
ac
t i
vi
ty .Iti susua
llyt hel a
sto b
jec
tivebutjusta si mpor
tant
beca
usep ro
ducti
vit
yi sme asuredbyt heoutpu
tg ivenb yt he
ac
t i
vi
ties.Iti sthee ndr esultofanybusi
nessactivity.Each
busi
nessmustg oformrep rominentpro
duct
ivit
y-t og uarant
eeits
surv
ivala n
dd evel
opment.
Non-Eco
n omicActi
vities
Non-e
conomicact
ivit
iesr e
fertoah umana c
tiv
ityu n
de r
takensheer
ou
to flove,affe
ction,sympat
hyo rp at
riot
is
m.
Thes
ea c
tivi
tiesarecond
uctedvolu
n t
aril
ywithana imofrende
rin
g
se
rvic
est oot
h er
sf orfreei.e
.i tcannotbemeasuredintermsof
mone
y.
Itincl
udesallt hos
ea c
tivit
ieswh ic
ha reperfo
rmedf o
rt he
sa
tisf
act
ionofh uma nsenti
mentst hatcanbes oc
ial
,r el
igi
ous
,
cu
ltur
al,perso
n a
l,r ec
reat
iona
l,c har
ity,pat
rioti
c.
Obje
cti
v e
sa ndT ypesofN on-Eco
nomicAc t
ivit
ies
Free
-TimeAc tiv
ities
:I tonlyaimsa tacqu
iri
ngp le
asureinidl
e
ti
me.F orinstan
ce,p ai
ntingands igni
ngetc.
Famil
y-CommitmentAc t
iviti
es:T hisacti
vit
yi sdedica
tedand
in
spir
edb yfamily.Forex a
mple,at eac
hereducat
ingh i
s/h
erown
chi
ldath omea ndad o
ctorcons
ultinghisfamilyetc.
Cult
ura
la ndReligio
usAc t
ivit
ies:Thea c
tiv
ityincl
udeshappi
ness
andmentalpeace.E xa
mple,worshipp
ingG o
da ndvisiti
ngtempl
e
et
c.
So
cialWe l
far
eAc tiviti
es:Iti sbasedonap assi
ono fhel
pingor
sy
mphathis
ingtowardsot
hers.Suchaasdona
tio
nt ounder
priv
ile
dge
d,
par
tic
ipat
iononr elie
fcampt oh el
pp eo
pleaffe
ctedbyc al
amit
ies
et
c.
D
iff
erenceb e
twe e
nE cono
mica ndN on-
Econo
micAc ti
vitie
s
Meaning: E cono
mica c
tivi
tyr efe
rs
Non-
Econo
mica ct
ivity
toah umana cti
vit
y
re
late
d isa nacti
vit
yp erfo
rmed
toproduc
tio
na nd
co
msumpti
on glad
lywi th
outt heaim
ofgoodsands er
vic
esf o
r
fo
re co
nomicgain.
e
con
omicg a
in.
Motive
: Eco
n o
mic,i.e.toe ar
n
So
cial
/Psyc
holo
gical,i.e
.
 mo
ney
.
ou
toflo
ve,a
ff
ect
io
ne t
c.
Mone
y- Meas
ure
dinmo
net
aryt
erms
.
La
cksmo
neyme
asu
reme
nt
Me
asu
remen
t:
Ap
pro
ach: P r
agma
ti
c.
I
dea
li
st
ic
.
R
esu
ltsi
n: C
rea
ti
ono
fwe
alt
han
d
S
ati
sf
ac
ti
ona
nd
a
sse
ts.
h
app
ine
ss.
N
ati
ona
l A
ddsv
alu
eton
ati
ona
l
Doe
sn o
ta f
fec
t
Inco
me: inc
ome.
nat
ion
alinco
me.
C
lass
if
ica
tionofEcon
omicActi
vit
y
Busi
nes
s:Busi
nessisane c
ono
micact
ivi
tyconc
erne
dwiththe
pro
duc
tio
norp u
rcha
seands a
leofmerch
andi
seandrend
eri
ngof
ser
vic
eswithpurp
oseofearni
ngprof
it
.
Pro
fes
sio
n:Prof
essi
onisaf or
mo feco
nomi
ca c
ti
vit
y,where
in
spe
cia
lskil
ls
,k no
wled
gea n
de x
pert
is
ei sre
qui
redtobeappl
ie
d
bythepers
on,inh i
soccup
ati
on.
Empl
oymen
t:Employ
mentisar el
at
ion
shipnet
weentwopar
tie
s,
usu
all
ybas
edonac o
ntr
actwher
eworkispai
dfor
,whereo
nepart
y,
whic
hmaybeac o
rpor
ati
on,fo
rpro
fit
,not-f
or
-pro
fi
torga
nis
ati
on,
co-
ope
rat
iveorothe
re n
tityistheemplo
yerandtheoth
eris
empl
oye
e.
B
usi
nes
s
*Itisa
ne c
ono
micact
ivi
tybydoi
ngwhic
ho neca
ns at
is
fythe
b
asi
cnee
dsofli
fe,suc
ha sfo
od,sh
elt
erandclo
thi
ng.
*Itisa
lsokno
wnasa nent
erp
ris
eorfir
mo ranorg.inv
ol
ved
i
nthetra
deofgoo
ds,ser
vic
esorbot
htocons
umers
.
*It
'sane c
ono
micact
ivi
tywhichdeal
swithpro
duc
tio
na nd
d
is
rib
uti
onofgo
odsan
dser
vice
swithpro
fi
tmoti
vefo
ralongper
io
d
o
ftime.
*It
'sanorg.orente
rpr
isi
ngentit
yengag
edincommerc
ia
l,
i
ndu
str
ialo
rp r
ofes
si
ona
la c
ti
vit
ies
.
*Abusi
nes
scanbeaprof
itent
it
yo rno
n-pr
of
itor
g.thatpe
rat
es
t
ofulf
ilachar
itab
lemis
sio
n.
D
efi
nit
io
nofB
usi
nes
s
Acco
rdi
ngt oD ic
kse
e,"B us
ines
srefe
rstoaf or
mo fact
ivi
ty
cond
uct
edwi thano b
ject
iveofe a
rni
ngp r
ofi
tsfo
rthebenef
itof
thos
eo nwh os
eb e
halfthea ct
ivi
tyiscondu
cte
d.
Purpo
seofB u
sine
ss
*T osatis
fyt hebasi
cn eedofone'
slifei.e
.foo
d,s
hel
terand
cl
othi
ng.
*T oma kemo n
eya ndearnp r
ofi
t.
*T ose
rvet h
einter
estsofalarg
ergro
upofst
akehol
der
sinc
lud
ing
emplo
yee,custo
mersande vensoc
iet
ya sawh o
le.
*T ocre
atesatis
fi
edc us
tomer
sbyp r
ovi
din
gg o
odqua
li
typro
duct
s.
*T oh a
ves omecorp
orateresp
ons
ibi
li
ty.
Co
ntrib
u t
io
nsfromB us
ine
ss
*E co
nomicgrowth
.
*C rea
tee mplo
ymentopport
uni
tie
s.
*P ro
videg o
odsandse r
vice
s.
Bas
icf or
mso fBusi
ness
/Owner
shi
p
Sol
ep ro
pri
e t
ors
hip
Part
ners
hip
Corp
ora
tion
s
Compan
ies
Co-op
era
tive
Franc
hise
Dire
ctsell
ing/n e
tworkma rk
eti
ng
Agric
ul
ture&Mi ni
ng
Fi
nanc
ial
Re
alEsta
te
In
for
mati
ona
lT e
chn
olo
gy
Se
rvi
ce
Man
ufac
tur
ing
Ut
ili
ti
es
Re
tai
ler
s&D i
st
rib
uto
rs
Tr
ansp
ort
ati
on
Prof
essi
on
Th
esearethoseoccu
pationswh i
chinvol
vet here
nderi
ngofpers
onal
s
ervic
esofas pec
iala nde xper
tn at
ure.
Fo
re xa
mple:al a
wyerp racti
cesthelegalpro
fes
sio
nt ak
esupcases
a
ndo f
fer
sh istec
hnicaladviceandspeci
alis
edserv
icesfo
rs u
ita
ble
p
ayment.
O
there x
amplesa r
e-f armer,p ri
est
,d octo
r,art
ists
,ma na
ger,
f
oot
ballpla
yer,f i
remenwa i
ter,engi
neer,offi
cewo r
ker,pol
ic
e
o
ffi
cer,sin
ge r
,p il
ot,swi mmer.
S
incespec
ialis
eds e
rvicesh a
vet ober ende
redbyt h
ep r
ofe
ssi
onal
p
ers
o n
s,theyh avet osatisfyt heminimuma c
ademicandother
q
ualif
ica
tio
nsp re
scrib
edb yt helaworb ytheasso
ciat
io
nt owhic
h
t
heymu s
tb elon
gi nordert obea bl
et opract
ic
et hei
rprofe
ssi
on.
Aprof
essi
oni ssomethingal itt
ermoret hanajob,itisac a
reer
f
ors o
meonet ha
twa ntst ob eap artofs oc
iet
y,wh obeco
mes
c
ompet
entint hei
rc ho
sens ecto
rt hr
oughtrain
ing
;ma in
tain
stheir
s
kil
st hro
ughc onti
nuingp rof
essio
naldevelo
pment
(CPD);and
c
ommitstobehaveethica
lly,top ro
tec
tt heinte
res
tsofthepubl
ic.
S
omeimport
an tpro
fess
ionalb o
dieswor
k i
n ginIndi
aa r
easfoll
ows:
1
.Me dic
alC ounc
ilo fIn d
ia:f o
rme dica
lp r
of
essi
on.
2
.B arCoun c
ilofI ndia:forl e
galprofes
sio
n
3
.I ns
tit
ut eofC ha
rteredA cco
unta
n t
so fIndi
a:f o
ra cc
oun
tin
g
pro
fes
sion.
4.Ins
tit
ut eofCompanyS ecre
tari
es:forCompan
ys ec
reta
rys
hip.
 5.Insti
tut
eo fCos
tandWo rkAcco
untant
sofIndia
:f o
rCost
Accoun
tant
s.
Empl
oyment
*I nthesecas
eso fo
ocu
pat
ionsap e
rsonhastoworkun d
eran
agr
eementorruleofser
vic
ea ndperf
ormssuc
hwo rkasmayb e
as
signedtohimb ytheemplo
yer.
*R e
mu ne
rat
ionforsu
chworktakesthefor
mo fwag
esorsala
rie
s
andallo
wance
s.
*S o
me t
imespeo
plebel
ong
ingtoprof
essio
ntakesupemplo
yment
wit
hg ovt.orpvt.age
nci
es.
*E .
g:Wo rki
ngi nof
fic
e,banks
,c o
mpani
es,sho
psasama nage
r
orcler
ko ras al
esma
ne t
c.
Compar
isi
onb e
twee
nB us
iness
,P r
ofess
io
n&E mpl
oyment
Bus
iness P
rofe
ssi
on
Emplo
yment
1.
ModeofEstab
lis
hment
:
Alawfulbus
ines
sest.when Ap
ers
oni
ssu
ppo
sedt
o
App
oint
mentcommen
ces
adeci
sio
nt ocar
ryont h
e e
nro
llh
ims
el
fwi
tha
whenap e
rsonagr
eesto
bu
sine
ssisundert
ake
n. r
eco
gni
se
dpr
of
es
si
ona
l
wor
ku nde
rac ont
rac
tof

i
nst
it
utio
n. e
mpl
oyme
nt.
2
.MinimumQua
li
fic
ati
on:
Q
ual
ifi
cat
io
nisno
tnec
ess
ary Mi
n.t
ec
hni
ca
l&a
cad
emi
c S
pec
if
ic
q
ual
if
icat
io
nis
f
orsta
rti
ngabusi
nes
s. q
ual
if
ic
at
io
nar
ene
ces
sar
y
n
eed
edi nso
mecas
esbut
t
o
e
nte
rap ro
fes
si
on. n
oti
nal
lca
ses
.
3
.Ma i
nO b
je
cti
ve:
T
hema i
nobj
ect
iveof Ane
leme
nto
fse
rvi
cea
lo
ng
T
hema i
nobj
ect
iveisto
b
usi
nes
sistoearn wi
the
arn
ingmo
neyi
s
ear
nal iv
ingbywa yof
pro
fit
. pr
ese
ntin
pro
fess
ion. wage
sors ala
rie
s.
4.Secrec
y:
Itisn ec
ess
aryto Maint
ainsec
rec
yi ncu
sto
mer
Ane mpl
oyeeisrequir
ed
main
tainsecre
cyin d
eal
ingi snece
ssa
ryin
tofoll
owt herul
esofs e
rvi
ce
bus
ines
s. p
rof
ess
io
n.
aspresc
rib
edi ncont
rac
t.
5.Effi
cienc
y:
Thee f
fic
ienc
yo fbus
ines
s T h
eeffi
ci
encyi sjud
gedby
Thee f
fic
ienc
yi surge
db ythe
ismeasure
db y theq ua
lit
yofs e
rvi
ce
s
workh eputsinandh is
pro
fit
s. p
rov
ide
dt oth
e
cli
ents
. lo
yal
tytoth eemplo
yer.
6.Transfe
ro fint
eres
t/own
ers
hip
:
Tran
sferofinter
est& Tr
ansf
ero fpro
fes
si
on An
empl
oyeecan'ttra
nsfe
r
owner
shipisp o
ssi
ble c
ert
ifi
cateisnot
hisjobtoa nyoth
er
inbussi
nesswith poss
ibl
e.
per
son.
leg
alformal
iti
es
ifany.
7.DegreeofR is
k:
Allbusi
nessacti
vi
ties The
reisv er
yn egl
ig
ibl
e
Ane mpl
oyeedoesnot
areful
lo frisk
. r
iskinp rof
ess
io
n.
inc
ura nyriskofbusi
ness

s
olon
gh erema
insinjo
b.
8
.Capi
tal
:
C
api
ta
lisrequi
redas L
imi
te
dca
pit
ali
s
N
ocapi
ta
lsrequ
ire
d.
p
ernat
ureofthe n
eed
edf
ore
sta
bl
is
hin
g
b
usi
nes
s. a
nof
fi
cef
orca
rry
ingon
pro
fe
ssi
on.
9
.R et
urn:
P
rofi
ta n
dt he
reo
f. P
rof
es
si
ona
lfe
es.
S
alar
iesorwages
.
1
0.Natur
eo fWork:
G
oodsandserv
ice
s P
ers
ona
li
se
dse
rvi
ce
.
P
erfo
rmin
gwo rkass
ign
ed
p
rovi
dedto
b
ys up
eri
ors
.
i
ndiv
idua
ls&g ro
ups
.
1
1.CodeofC o
ndu
ct:
N
oc od
eo fco
nduc
tis P
rof
es
si
ona
lco
deo
f
N
ormsofb e
havi
ourla
id
p
resc
ri
bed. c
ond
ucti
stob
e
d
ownb ytheemplo
yerare
f
ol
lo
wed
.
t
obef
ol
lo
wed
.
Natu
re/Char
act
eristi
csofB us
iness
i
.Dea
linginG o
odsandS e
rvice
s:Thef ir
stbasi
cc ha
rac
teri
sti
cof
abusi
nessistha
ti tdea
lsing o
odsa n
ds e
rvi
ces.Good
sp r
odu
ced
orexc
hangedmayb econs
umergoodssuchasb r
ead,ric
e,clo
th,
et
c.orcapit
algoo
dssu c
ha smachi
nes,too
ls,etc.Thecons
umer
go
odsareme a
ntford i
rec
tc on
sumptio
ne i
therimmedia
tel
yo r
af
terunderg
oi
ngs o
mep roc
esse
s,wh er
easthec api
ta
lg o
odsare
mean
tforbei
ngusedfo
rt h
ep ur
pos
eo ffu
rthe
rp r
oduct
io
n.Capi
tal
go
odsareals
ok n
owna spro
duce
r'sgoods
.Servi
cesincl
udesup
ply
ofele
ctri
cit
y,gas,wa t
era n
df i
nance,ins
urance,
tr
ansp
orta
tio
n,war
ehousi
ng,etc.
i
i.P roduc
tio
na ndE x
change:Ever
yb usi
nessisc o
nce
rnedwith
pro
duc
tio
na ndexchan
geo fgoo
dsa ndserv
icesforval
ue.T h
us,
go
odsprodu
cedorp ur
chas
edf o
rp er
sonalco
n s
umptio
no rfor
pre
sen
tingtoothe
rsa sgif
tsdon otcons
tit
uteb us
ine
ssbeca
use
the
reisn osa
leort r
ansf
erf o
rv a
lueinvol
ved.F o
rexampl
e,If
 'A'buysaT .Vs etinT ok y
oob eg i
stedtohisbrothe
ro nhis
retu
rnt oNewD el
h i
,i twilln o
ta mounttob u
sine
ss.Butifthe
sameperso
nr ea
lis
et hepriceoft heT .
Vs et
,itwi l
lc o
meu n
der
thescopeofb usi
nessinal imitedwa yprovi
dedth eothe
r
cond
itio
nsa r
ea lsosatis
fied.
i
ii
.R egul
ari
tya ndC ont
inuityinD ea
lings
:O nesaletran
sat
ion
canno
ts tr
ic
tlyconsti
tuteab usi
n es
s.As a
leofap rodu
ctcanbe
call
edab usi
nessi fiti sundertakenf r
equen
tly.Ifo th
er
esse
ntialchar
acte
r i
sti
cso fbusinessarep r
esentandt he
prod
ucti
ono fgoodsorr ender
ingo fs er
vic
esf o
rap ri
ceis
under
takenregula
r l
ya ndc o
ntinuousl
y,t h
isa c
tivi
tywi l
lb e
call
edbusine
ss.
i
v.U ncert
ain
ityorR isk:B u
sinessacti
viti
es,asweh avefo
rmed
somed e
fini
tei de
asa bo
uti tb yn ow,carryane le
me n
to f
uncer
taini
tyorr isk.Iti struet hatthee le
mento fris
ki s
pres
enti nalmsta l
le co
nomica cti
v i
tie
sinas mallorg r
eat
measu
re.B utiti scertai
n l
ymo res ign
ifi
cant
lyp res
entin
busi
nessact
ivit
ies.Riski nv
olvesthep o
ssi
bili
tyoflossorwhat
mayb ecall
edun c
erta
inityofr e
tu r
no ninvest
mentma deinthe
busi
nessduet oav arie
tyo ff a
ctorsoverwh i
cht hebusi
ness
enter
pris
eh asp r
acti
call
yn oc ontrol
.
v
.Prof
itMo ti
ve:H umanbeingsa r
ee n g
agedinbusine
ssp ri
mari
ly
withav iewtoe arnp r
ofit
sa nda c
q u
irewealth.Thisisnotin
anywa yreduc
et heimportan
ceo fservic
emo ti
veinb us
ines
s.As
ama t
teroffact,thereisap osi
tiverelati
onsh
ipbetweenpro
per
andsatis
fac
toryservic
est othecu s
tomersandtothes o
ciet
yand
theextentofp ro
fit
.N ormall
y,b et
t e
rs er
vic
esa r
ea cc
ompan
ied
byh i
gherp r
ofit
s,b u
ti tma yn ota l
waysb eso.P r
ofi
tmo t
ive
isals
oa cc
epte
da sad esi
rabl
eo bj
ectiveevenfortheGovern
ment
enter
pris
esengagedinb usi
ness.I tiscall
eds u
rpl
usi ns
tea
dof
prof
itinc as
eo fg over
nmente nterpr
ises
.
Natur
e/Characte
rist
icso fP ro
fess
ion
i
.Specia
lisedk nowled
ge:E v e
ryp rof
esisi
onr equir
ess peci
al
knowledgetob eacqu
iredth r
oughtraini
ng.T hisknowledgecannot
bei nhe
rited.Ad oc
tor'ss o
nc annotbecomead oct
orwi thout
purs
u i
ngt hen e
cess
aryc ours
eo fstudiesforme dic
ald egree.A
lawyermu sth avethek nowle
dgea ndt r
aininginl awt obea ble
top ro
videl egalservi
cet ot hep eop
le.
i
i.S ervi
ceMo tiv
e:T hepr i
maryo b
ject
iveo fe v
eryp ro
fessio
mi s
toprovides ervi
ce.Th eprofe
ssional
sg ets o
mer emunerati
onf or
provi
dings uchs er
vices.T hu
s,d octo
rs,l a
wyersa ndo t
h er
prof
essi
onalswo rkwi thse r
vic
emo ti
vea ndint hep roc
esse arn
moneyf ort heirliv
elihood.
i
ii
.R egulate
db yspecial
isedbody:Ap rofes
siona
lbodyr eg
ulates
everyprofe
ssion.Forex a
mp l
e,Institu
teo fChart
eredAc c
ountants
ofIndia,B arC oun
cilofI ndi
aa ndMe dicalCounci
lo fIndiaa re
thep r
ofessi
on albod
iese s
t a
bli
shedt ore gu
lat
et hef uncti
onso f
CA s
,L awyersa ndD oc
torsi nIndiar espec
tivel
y.
i
v.C odeo fC onduc
t:T hes
ep rofe
ssiona
lsh aveac odeo fconduct
devel
opedb yt hec o
ncernedp r
ofessio
nalb od
y.T hisi st obe
foll
oweds tr
ictlybye achp ro
fessi
onal.T hisensuresuniformity
inwo rkingo fa l
lt hep r
o f
ess
ionals.
Nature
/Characeri
stic
so fE mp l
oyment
i
.Wo r
kf orO thers:Peopl
ee ngagedine mpoymenta l
wa y
swo rkf or
someon
ee lse.T heyaren otfreet odecidethewo rkt obed one.
Theyh avet of ol
lo
wt hei nst
ructio
nso ft he
irbosso remp l
oyer.
i
i.T ermsa ndC ond
iti
ons:I nemployment,ther
ea recert
aint erms
andc o
nditionsr eg
ardi
n gwo r
kt ob ep erf
ormed.h o
u r
so fwo rk,
amountofwa gea n
do therfaci
litie
s,i fa ny
.T hee mployerwh o
offe
rsemp lo
y mentnormall
yd ecid
est hes
ec ondit
ions.Thep erson
seekin
gaj obmu s
tjoint heworko nlyafterbeingsatis
fiedwi th
thet e
rmsa ndc on
diti
ons.
i
ii
.F ixedI ncome:T her emune
rationp ayab
let oane mployeei s
fi
x e
da ndi sp aidint hef pr
mo fwageo rs al
ary.A ne mployee
 getsh i
swa georsalaryatregul
arintervals
.Th i
sma ybeo ndai
ly
ormo nthlybas
is.T heincre
mentsinp ay,d e
arnessall
owanceand
ot
h erallowanc
esa realsopayab
leo nth ebasi
so fthetermsa n
d
co
n di
t i
onsofe mployment.
Sco
peo fB u
siness
Th
es copeo fbus
inessi sverybroad
.I tc over
sal argen umbe
ro f
a
cti
vitieswh i
chma ybel oo
kedintofromt wopers
pecti
ves,n a
mely:
I ndustry
C omme rc
e
MeaningofI ndust
ries
Thep r
oduct
ions i
deo fbusine
ssa ct
ivityisr ef
erredtoa san
industr
y.
Itsisab us
inessactivi
tywh ic
hi srelatedtother ea
lisati
onof
produci
nga ndma nufact
urin
gt hep ro
ducts.
Industr
yi sthep ro
ductio
no faneconomicg o
odors e
rvicewithi
n
ane conomy.
Industr
yi sthatbrancho fbus
inesswhichi sconc
ernedwi t
ht h
e
product
iono fgoodsa ndservi
cesbyu singt heproce
sseso f
extract
ion,convers
ion,p ro
ces
singo rfabric
ati
ono fp r
oduct
s.
Theg ood
sa ndserv
icesprodu
cedbya nindustr
yma ybeu s
ede i
ther
byf inalconsu
me rorb yb us
ines
smenf orf ur
therp r
oducti
on.
Pro
duct
so fI ndus
try
Th
ep roduc
tsofani ndustr
yma yfal
lu nderanyoneo fthefoll
owin
g
t
hre
ec at
egori
es:
a
.Consumer'sG o
ods:G ood
su sedbyf ina
lc o
nsu
me r
sa reca l
le
d
co
n sumersgood
s.F o
re xampl
e,E d
ibleoils,cl
oth,T.V,R adi
oetc.
b
.Producer
' s
/C a
pitalG oo
ds:Good
su sedint heproduc
tio
no fother
goo
d sared esc
ribe
da sp ro
ducer
'sg o
ods.S t
eelproduc
edb ys t
eel
pl
a ntisu sedforfabric
atio
ni nt
oav ariet
yo fprodu
ctss uc
has
motorc ars
,s c
ooter
s,r ai
ls,shipsetc.
c
.Intermediat
eG oods
:T h
erea r
ec e
rtainma ter
ial
swh icha r
et h
e
fi
n i
sh e
dp rodu
ctso fonei ndu
strya ndb ec
omet heintermed
iat
e
 pro
duct
so fotherindustri
es.Af e
we x a
mplesofthi
sk i
nda re
thecoppe
rindustry,thefinis
hedproduc
tsofwh i
chareusedin
manufa
ctur
ingelectri
calappli
ance
,e l
ectr
ic
ity,wire
s,toys,
ba
sk e
ts,con
tainersetc.
Pri
maryI nd
ustry
Itisc o
ncer
nedwi tht heprodu
cti
ono fgoo
dswiththeh e
lpo f
nat
u r
e.
Theyma kedire
ctu seo fnatur
alreso
urce
s.P r
imar
yi n
dustr
ies
ar
eu sual
lymo s
to mportan
ti nlessdevel
ope
dc ou
ntr
iesand
typ
ical
lylessimp o
rtantini ndu
stri
ali
sedcount
ri
es.
Itiso ftwot yp
e s
,n amelyG e
net
icI nd
ustryandExtra
ctive
Indus
try.
E.g
-F armin
g,F ishin
g,h ort
icul
tu
re.
Genet
icI n
dustr
y
Genet
icIndus
triesares uc
hi nd
ust
riesinwh i
chcert
ai
ns pec
ies
ofp l
ant
sa ndanima l
sa remulti
pli
eda ndrepr
odu
cedfotthe
pur
p o
seofcreati
n gwea l
th.
Suc
hi ndus
tri
esd ependont hen a
turebutrequi
regrea
ter
app
lica
tio
no fh umans kil
l.
E.g
-C attl
er e
aring,poultr
y.
Extr
acti
veI ndu
stry
Itisc o
ncer
nedwi the xtr
acti
onofd r
awingoutgood
sf r
omt he
so
il,air&wa te
r.
Thep r
oduc
tso fsuchi ndus
tri
esareg en
eral
lyu s
edny
manufa
ctur
ingandc ons
truct
ionind
ustri
esforpro
duc
ingfin
ished
go
ods.
Thee xt
rac
tiveindustr
yc ons
ist
so fanyoperat
io
nsthatremove
metal
s,mineral
sa nda ggr
egate
sfromt heeart
h`
E.g
-Mi ning
,c oal
,o il
,i ro
ne tc
.
Secon
daryIndust
ry
Ind
u s
tri
eswh i
cha ree nga
gedinma nufa
ctu
ringact
ivi
tie
sa re
knowna ssec
ondaryindustri
es.
Sec
ondar
yi ndu s
tryi nv
olve
st heacti
vitiesofp ro
cess
ingo fraw
mate
r i
al
si ntou sef
u lpro
ducts.
Fore g
-p rocess
ingo firona ndste
el.
Itisdividedintot wocate
gorie
s-Ma nuf
a ct
uringIndustri
esan d
Cons
t r
ucti
onI n
dustrie
s.
Manuf
acturi
ngI ndus
t ry
Thet e
rmma nu f
actu
r i
ngma yrefe
rtoar angeofh u
mana cti
vit
y ,
fr
omh andicr
aftt oh ig
ht ech,butismo stc o
mmo n
lya ppl
iedt o
ind
ustri
alp rodu
ction,inwh ichrawma terial
sa retransf
ormed
int
of in
ishedg oodsonal ar
ges c
ale
Eg-t e
xtile,c h
emical,sugaretc
.
Typeso fManufact
uri
n gIn dus
try
i
.Analyt
ical:T heb a
s i
cma t
erialisana l
yseda ndseparate
di nto
an umbe
ro fp ro
d u
cts.Oilrefini
ngisa ne xa
mpleofa nalyt
ical
ind
ustry
.T hec rudeoilisextrac
tedfromb enea
tht heearthan d
isproce
sseda nds epar
atedintopetro
l,d iese
l,k er
osene,
gas
oline
,etc.
i
i.S ynt
hetic:T woo rmorema t
eri
alsaremi xedt o
getherinth e
manufa
cturi
ngo peratio
nstoo bt
ainsomen ewproduc
ts.P r
oducts
li
kes o
ap,ceme n
t,p ai
nts,
,fer
til
ise
rs,cosmetic
s,arederive
df r
om
thi
si ndust
ry.
i
ii
.P ro
cessi
ng :Inth i
sc a
se,rawmaterialsareproc
essedthrou
gh
aserie
so fma nu
facturi
ngoperat
ion
sma kingu s
eo fanaly
tica
la md
syn
th e
ticmeth o
ds.T ex
til
es,suga
ra ndsteelareexamplesofthis
ca
tegory
.
i
v. As se
mb l
yL i
n e
:I na s
semblylinei n
d us
try,thef ini
shed
pro
ductcanb ep ro
ducedonlyafte
rv ar
iousc o
mponentshaveb e
en
madeandt henbroughttog
etherfo
rfinala ss
emblytobec o
nvert
e d
int
of in
ishedp roduct
s.P r
oduct
io
no fa utomob
iles
,wa tches
,
tel
evis
on,bicycles
,r ai
lwaywa g
ons
,e tcarethet ypi
calexampl
e s
ofthei ndust
ry.
Const
ruct
ionIndustry
Cons
truct
ioni sap roces
sthatc o
nsi
stsoftheb u
ild
ingor
asse
mblin
go fi nfr
ast
ructu
re.
Thei nd
ustryfocus
edo nthebui
ldin
gofin f
ras
truc
tur
eincl
udi
ng
homes,commerci
alb u
ildi
ngs,brid
gesandh i
ghwaysetc
.
Ter
tiary
/Ser
viceIndus
try
Thesearet hes p
ecia
lt yp
esofi nd
ust
riesapar
tfroma l
lothe
r
indu
stri
eswh ichareengage
dinp ro
vid
ingspec
ialser
vic
estothe
soc
iety`
Serv
iceindustrycompani
esa r
ei nv
olv
edi nret
ail
,t r
ans
por
t,
dis
trib
uti
o n
,f oodser
v i
cesaswe l
laso t
herservi
cedomin
ated
busi
ness
.
E.g-h o
tel,touri
sm,e nte
rta
inmentetc
.
Quate
rnar
yI ndus
try
Indu
s t
rie
st hatareinvolv
edwiththed e
signanddeve
lop
mentof
newt ec
hnolog
ya n
dp rod
uct
s.
Thesearer es
e a
rchan ddevel
opmen
ti nd
ustr
ies
E.g-computerresear
cha ndmobil
ep ho
net ec
hnol
ogy
.
AnotherC las
sif
icat
ionofI nd
ustr
ya ndItsT yp
es
I
.Ont heba s
iso fsour
c eofR a
wMa teri
al:
a
.Ag roB a
sedI ndu
strie
s
b
.Mi ner
alB asedIndust
rie
s
c
.Ma ri
neB asedI n
dustri
es
d
.F or
estB as
edI ndust
rie
s
I
I.O ntheb asi
so fS i
z e:
a
.L ar
geS cal
eI ndus
tries
b
.S mal
lS cal
eI ndus
tries
I
II.Ont heb asi
so fO wner
ship
:
a
.P ubl
icS e
ctorIndustr
ies
b
.P ri
vateS e
ctorIndustr
ies
c
.J oi
ntS ect
orI nd
ustri
es
d
.C o-p
erati
veS ect
orI nd
ustr
ies
Commerce
Commerc
er efer
st oallthosea c
tivi
tieswh i
c hh el
pd ir
ect
lyo r
indi
rec
tlyint hedist
rib
utionofg o
odstot heu l
timatecons
umer.
Therewillben op r
oduc
ingg oo
dsu nles
sa ndu ntil
lg o
odsreac
h
theulti
ma t
ec onsu
mer.G o
odsa reproduce
da tonep la
cea nd
co
n s
umersares c
a t
ter
eda td i
ffer
entp l
aces.T hec o
nsumer
sa re
notawareofwhatk i
ndsofgoodsareproduc
edb ythema nuf
ac
turer
.
Good
sarep ro
duce
di nalargequantit
ya nddema nde
db ycon
sumers
inas mallquantit
y.Allth es
ep rob
lemsi.e,t heh i
ndrea
ncesof
plac
e,hindaren
cesofk no
wle d
ge,h i
ndranc
eso fs to
rageetc
,a re
so
lvedbyc ommerce.
Thes e
conde l
ementthatc omesint hes c
opeo fb usi
nessis
co
mme r
ce.
Itisani n
terch
an g
eofgoodsorcommoditi
es,e s
pecial
lyonal ar
ge
sc
alebetweendiffer
entcountr
ies( f
orei
gnc ommerce)orbetween
dif
fere
ntp art
so fthesamec ountry(domesticcommere)trade
;
busi
nes
s.I tcana l
soref
ert othep ro
cessofb uyingandselli
ng.
Itcover
swh o
les
ale,ret
ail,import,exportt r
adea nda l
lthose
act
ivit
ieswh ic
hf ac
il
itat
ep ra ss
istins uc
hb uyi
nga ndsell
ing
suchass t
oring
,g rad
ing,pa c
kaging,fina
n c
ing,t rans
por
ting,
insu
ring
,c ommunica
ti
ng,wa rehous
inge tc
.
Thema i
nf unct
ionsofcomme r
ceist oremovet heh ind
ranc
eo f-
i
.p e
rsonsthrou
g htrad
e
i
i.pl
acethrought r
ansp
ortati
on,insuranc
ea ndp a
ckagin
g
i
ii. t imet hro
ughwa re
h o
usinga ndstorage
i
v.kno
wledget h
r o
ughsales
ma nsh
ip,a dve
rtisi
n getc,
a
ris
inginc onnec
tionwiththed istr
ibuti
ono fg oo
dsa ndservi
ces
u
nti
lt heyreacht hecons
umers.
Theconcep
to fcommer
ceincludestwot y
pesn amely(i)T r
adeand
(i
i)Ai dstot ra
d e
.(o rA u x
ilia
ryS ervi
ces)
Trad
e&I tsT ype
s
Th
ep ro
cessofb u
yingands el
lingo fgoodsisc all
edT ra
de.I tis
t
hee xc
hangeo fgood
sa ndservice
sa mongbuye rsands el
ler
si n
whic
hb ot
ht hepar
ti
esar
ebe
nef
it
ted
.
Trad
ei scl
assi
fi
edint
otwot
ype
s:
HomeT r
ade
Fore
ignT r
ade
i.Wholes
aleTrad
e
i.Impo
rtT ra
de
ii
.R et
ailTrad
e
ii
.E xp
ortT r
ade

i
ii
.E ntr
epo
rtT rade
I
.H o
me/Int
ernal
/D o
me s
ticT r
ade :Itcons
ist
so fbuyin
gands el
lin
g
o
fg o
odswith
int heb ound
a r
ieso fac oun
trya ndthep a
yme ntfo
r
t
hesameisma dei nn at
ionalcurrencyeit
herd ire
ctl
yo rt h
roug
h
t
hebankingsyste
m.I tma ybef u
rthersub
-d i
v i
dedas:
i
.Wh o
lesa
leTrade:saleo fgoodsinc o
mpara
tivelylar
gerquatit
ies
t
ot h
osetrad
erswh oa rei nd i
re c
tc o
ntra
ctwi tht h
ec o
n su
mers.
i
i.Retai
lT ra
de:p rovidi
ngg oodst otheconsumersins mal
l
q
uant
itie
s.
I
I.Forei
gn/I
nternati
onalT ra
de:I trefe
rstoth eexch
angeofg o
ods
a
ndservi
cesbetweent woo rmo recountr
ies
.I nterna
tio
nat rad
e
i
nvol
vestheuseo fforeig
nc urrency(f o
rei
gne xchang
e)e ns
urin
g
t
hepaymentofthep ric
eo fthee x
porte
dg o
odsa ndser
vic
e stothe
d
omes
ticexpo
rtersind omesticcu r
renc
y,a n
df orma ki
ngp ayment
o
ft h
ep ri
ceoft hei mporte
dg oodsa ndser
vicest othef o
reig
n
e
xpor
terint h
atc ountry'
sn ationalcurr
ency
.
I
II.Entr
epor
t/Re-exportT r
ade:I tinvol
vesthei mpo
rtoff o
reig
n
g
ood
swi t
hav iewt ore -
exportingthema ndma kingap rof
itin
t
hep r
oce
ss.Ins impl
et e
rms,i tc a
nb esaidt hatifgoodsa r
e
i
mpor
tedfromon ecountrywi tht hep ur
pos
eo fr e-e
xpor
tingt o
a
noth
ercount
ry.Fore xample
,i fanyI nd
iancompanyimpor
tsr ub
ber
f
romThail
andande xportsitt oJ a
pant h
eniti sc al
le
dE ntre
port
T
radeforIndi
a.
 Au xi
liar
y/Ai d
st oTrad
e
T
hea ct
ivit
ieswh ichh el
pi nt hep u
rcha
seofg o
odsan dser
vic
es
a
recalle
da idst otrade.T h
ea idswh i
charecompuls
oryforthe
d
evel
opmento ft h
et radearea sf o
ll
ows:
a
.Banking
:T hecommercialbanksp l
ayav it
alroleinf in
anc
ing
thediff
erentt r
adea c
tivit
ies
.T heyarefundi
ngthet ra
der
sfor
sto
ckh ol
dinga ndtranspor
tat
ino fgood
s.Theya l
sosuppo
rtthe
buye
rsa nds el
lersofg o
odsinr ecei
vin
ga ndmakingp a
yment
s,
bot
ha tthen a
tio
nala ndworldwid
el e
vel
.T hecre
ditfaci
li
tyin
theformo fcash,credi
t,overdraf
tsandloa
nsisp r
ovide
dtothe
tra
ders.
b
.Transp
ortation
:T hediff
erentwa y
softrans
por
th e
lpinc a
rry
ing
goo
dsfromt hep l
acesofp r
oduct
iontocen
tresofuti
lisa
tio
ne.g-
rai
lways,s hip
s,a i
rlin
ese tc
.
c
.Warehous
in g:Warehous
ingisak i
ndofsto
rero
om.Nowaday
smost
oftheg oodsarep r
oducedina ntic
ipa
tio
no fdemand.Theyare
sto
redins afeplace
sa nda r
er elea
sedasandwh e
nd emand
edin
thema r
ket.Wa rehousi
ngt hush el
psinoverc
omingtheb a
rri
er
oftimea ndc rea
test i
meu tili
ty.
d
.Insu
rance:I nsu
ranceisv er
ye ss
enti
alaidtotrade.Therisk
ofdamageofg oo
dsd uetofire,flo
od,ear
thqua
keoro t
h e
rcaus
es
iscover
edb yi nsur
ance.
e
.Advert
ising:S e
lli
ngo fg o
odsi sthemostdif
fic
ultprobl
emfor
thep r
oducer
.Ad verti
sementr ega
rdi
ngthep ro
ductthrou
gh
newspa
pers,ma gazi
nes,r a
dioa ndtel
evi
sonh a
sg re
atlyhel
ped
theconsumersinc hoosi
ngt heg oo
dsoftheirtas
te.S o
adve
rtis
eme ntsplayav i
talroleini nc
rea
singsaleofg o
ods
.
Object
iveso fBusi
ness
i
.E co
nomicO bjec
tive
s:
Pro
fitE arni
ng
Cre
atio
no fcusto
me r
s
Cont
inuousI n
novatio
ns
 Be
stp oss
ibl
eu s
eo fReso
urc
es
i
i.Soci
alO bje
cti
ves:
Pr
oduct
iona n
ds u
pplyofquali
tyg o
odsandserv
ice
s
Ado
ptio
no fF ai
rtradepra
cti
ces
Co
ntrib
u t
io
nt othegener
alwe lf
ar
eo fthesoc
iet
y
i
ii
.H umanO bje
cti
ves:
Ec
onomicwe l
lbei
ngo ftheemploy
ees
So
cial&p sych
olo
gic
alsati
sfa
ctio
no fempl
oyee
s
De
velopmentofhumanreso
urc
es
Wellbeingofsoci
all
ya n
de co
nomic
all
yb a
ckwar
dp e
opl
e
i
v.N a
tiona
lO bje
cti
ves
:
Cr
eatio
no femplo
yment
Pr
omotionofsoci
aljust
ic
e
Pr
oduct
iona c
cor
di
ngt onati
onalpri
ori
ty
Co
ntrib
u t
io
nt othereven
ueo fthecount
ry
Se
lf-su
ffic
ien
cyande xpo
rtpromot
ion
s
v
.G lo
balO bj
ect
ives
:
Rai
seg ene
ralsta
ndar
do fli
ving
Red
uced is
pari
ti
esamongn a
tio
ns
Makea va
ilab
leglo
bal
lycompet
iti
veg o
odsandser
vic
es
Func
tion
so fB u
sine
ss
T
hef u
ction
sl is
tedbel
owa r
ec o
nside
redasthemo s
tcruc
ial
,
f
unda
mentalorp r
imar
yf unc
ti
onsoft hemajo
ri
tyofb u
ssi
nes
ses
.
I
.I nt
ernalF u
ncti
ons II.Exte
rnalFunc
tio
ns
I
II.Suppor
tF unct
ion
s
*Ac
quis
ti
onoffina
nce * Ma
rke
ti
ngR
ese
arc
h
*Ac
cou
nti
ngO p
era
tio
ns
*Pu
rcha
si
ngofr a
w- *Ad
ver
ti
se
men
ts
* Pub
li
c-Re
lat
io
no f
fi
ce
r
mat
eri
als
(
PRO
s)
*Hi
rin
go fLab
our *S
ale
sPr
omo
ti
on
*Q
ual
it
yc o
ntr
ol(Q
C)
*O
ver
hea
dE xp
ens
es *A
ppo
int
ingo
fSa
les
*B
usi
nes
sP r
oc
ess

Ag
ent
s O
uts
our
ci
ng
(
BPO)
*Pro
duc
ti
onofGoo
ds *S
ell
in
g&D
ist
ri
but
io
n
*Huma
nR e
sou
rces
erv
ice
s
Esse
ntialsofS u
cces
sfulBusiness
1
.O bjectives:Fort hes uc
ces
so fanyb u
sinesso r
gani
sat
ion,
d
etermina t
iono fitso b
ject
ivesisverye s
sential.Itshoul
db e
c
lea
rlyd escr
ibedanda lsobereal
ist
ic.Itma yb ep r
imar
yo r/a
nd
s
eco
nd ary.E achactivi
tyo ftheo r
ganis
ati
ons houldbed i
recte
d
t
owardst h eachie
v e
me nt
so fitsobj
ecti
ves.
2
.P lannin g
:P lan
n i
ngr ef
erstotheratio
nala ndorder
lythinki
ng
a
boutt hep rob
lema ndfindoutthesolut
ionswithr ef
eren
cetot he
o
bje
ctiveso ft hef i
rm.I te n
abl
esth efir
mt or unsmoo
thlyand
t
herebyr educesther iskofloss.Thus,iti sconsid
ere
da st he
e
ssenceo fb uss
iness
.
3
.R ese arc
h :Resear
chi sn e
cess
aryfortheo rganis
ati
onino rde
r
t
oimp rovet hemethodsandtechni
quesofprod
u c
tion,qua
lit
yo fthe
p
roductsa nda ls
ot ointrodu
cen ewprodu
cts.I te n
abl
esthe
b
uss
in essmant omeett hechang
ingneedsofcustomers
,demandand
a
lsoc ompetiti
na mongt hep r
odu
cers
.
4
.L ocation&S i
ze:F avor
abl
el oc
at
iona n
ds u
itabl
es i
zeh avea
g
reatb earingo nthes ucce
ssofa nybusi
nessc once
rn.The
b
usi
n essmani nsel
e c
tingasuitab
lelo
cati
ona ndalsoindet
ermini
ng
i
tssi zemu s
te xerc
isep ro
percare.
5
.S o
u ndO rganisa
tion:Soundorg
anis
atio
ni sverye ss
ent
ialfo
rt he
s
ucc
es so fa nybusines
s.I tisame diumfore xercis
ingeffe
ctiv
e
c
ontr
o lan dmanagementofanybusin
ess.Agoodo r
ganis
atio
nalchar
t
i
sn ecessaryf o
rs ta
ffingtheorgani
sati
onwi ths uf
fi
cie
ntn umbe
r
o
fperson nelwithdiff
erenttal
entsandskil
ls,dividi
ngworkamong
peo
pleetc.
6.Adequat
eF in
ance
:F ina
ncei sthel i
feblo
odoft heorgani
sat
ion
.
Ina
dequ
a t
ef inanc
ema yl e
adt ol os
sesi nt hefirm.H enc
e,
arr
ange
me ntsshou
ldbema d
et ome etthes hort
-terma ndlo
ng-te
rm
req
uir
eme n
tso ftheorgani
satio
n.F lowo ffundsa ndemplo
ymentof
fun
dssh o
uldb ep l
annedwelli na dvance
.
7.Effe
ctiveMa nage
me nt
:I no rdertoa chiev
ei tso b
ject
ive
s,
eff
ec
tiveande ff
ici
entmanagementisessentia
l.Nof ir
mc a
nachiev
e
suc
ces
su nl
e ssithasane f
ficientma na
geme n
t.I tisp o
ssi
bl
eo nl
y
whenthema nage
rsarec o
mpe t
enti np erfo
rmingt hei
rd ut
y.
8.Eff
ectiv
eD i
str
ibu
tionSystem:T hegoodp r
oducedhaveval
ueonly
whentheya remadeavail
ablet oth econsumers.T heobj
ectof
pro
duc
ingg oodsits
el
fi stod is
tribut
ei tf o
rv alue.There
for
e,in
eve
ryb usi
nesso r
gani
sati
oni ti sessentialtoh avee f
fec
tiv
e
dis
tr
ibuti
ons yste
m.
9.MaintenanceofB et
terE mployeer el
ations
hip:C ordi
al
empl
oye
e -e
mp loy
errela
tio
nshipisv erye s
senti
alf orthesuc
ces
sfu
l
ope
rat
ionoft hebus
inessco
ncen.E mplo
yeesa r
et oberewarde
d,well
tre
ate
da nda l
sopro
v i
dedwi tha l
la menitie
st oe nsu
rej o
b
sat
is
fac
tion.T hiswilldef
initelyboostu pthee mp l
oyee
s'moral
e
andensuret hei
rcooper
ati
on.
Quali
ti
eso faS uc
cessfulB us
inessman
1.Physi
calAp p
eara
nce:T hep hysi
cala ppea
rancea ndthe
per
sona
lityo fthebusines
smanh av
eg reatc o
ntribut
ioninh is
suc
ces
si nth ebus
iness
.Ifh eh asgooda ppe
arancea n
dc o
mmandi
ng
per
sona
lity,itimpress
esthee mployee
sa ndma keh imas uc
ces
sfu
l
bus
si
nessman.
2.Educ
ation:T od
aybusine
ssi sac pmplexa c
ti
v i
tyn dd e
mandsthe
ser
vic
eso fe duc
ate
da ndskille
dp erso
n swh oespecia
llyknowthe
tac
tsofb usines
s.Sot heeducatio
ni sc ompul
soryf o
rag o
od
bus
ine
ssmant ou n
ders
tandthec omplic
ationandh asc o
mmunic
atio
n
wit
ho ther
s.
3.T echnica
lS kill
s:T odayeve r
yb u
sines
sd emandssomes ortof
techni
calskill
.S oag oo
db u
sinessmanmu s
tk no
wa llthosetechni
cal
skil
lsr equi
redfort hatp a
rtic
u l
a rbusi
nesswh ic
hh eh a
ss t
ated
.
Forex a
mp le
,ify ouwa nttoma nufact
ureaircrafts,theny o
umu s
t
beae ngineerandi fyouwa nttoo penana udi
tf irmtheny oumust
beac hart
eredac c
ountant.
4.H onest:Iti st r
uet hath o
n estyisab estp o
licy,so,fort h
e
succ
esso fthebusiness
,i tisnecessarythatthebu s
inessmanmu s
t
bea nh ones
tp e
rson.H es ho
uldn otd ec
eiv
ea nyo ne.H eshouldno
mixu pin f
eri
orqu a
lityinh i
sown .H eshou
ldwo r
kh o
nestl
y.Peopl
e
willtrusth ima ndh isb u
sinesswi l
ld ev
e l
op.
5.H ardworki
ng:Ab usines
smanmu stbeah ard
wo rk
ingma n.H e
shoul
db eh abi
tualt oworkf oral on
gertimet od ev
elopa n
dl oo
k
afte
rh isb us
iness.Ifh eisn oth ardwo r
kinga ndisl azyperso
n
hec annotcompleteth eordera ndh ewi l
lh avet osufferlos
ses
.
6.Cou
rteous:Ab usine
ssmanmu stb eacoolmindedp e
rsonandshoul
d
talkwi thh i
ss ubo
rdinates
,colleaguesandc u
stomersp o
lite
ly.He
shoul
dn otleavec o
urtesyina nyc ase
,i nthiswa yhec anwi nthe
heart
so fh iscustomersa ndcand ev
eloptheb usine
ssr el
atio
ns.
7.Steadfast
:Ag oodb u
sines
smani sa l
wayssteadf
astinh isbus
ines
s
affa
irs;h eisn otdistur
bedb yt heu su
albusinesshindranc
esa n
d
smalllosses
.H ewo rksh ar
dh one s
tlyands te
a d
ilytod evel
oph i
s
busi
ness.
8.E nduranc
eP owe r
:T hee ndurancep o
weri sa na ss
etf ora
busi
nessman.H eh astome etan dt al
kwi t
hs oma nyo the
rp eo
ple
.
Someti
med ur
ingd isc
ussion
,s omething'
sa red i
slike
db yh imb u
t
inspi
teo fthi
s,hed oesnotgeta ngryanddealwithotherspati
entl
y.
9.D i
scipli
ne:Iti stheq ual
ityo fag oo
db us
inessmanthath emust
havead is
cipl
inedp ers
onali
ty.H emu stbrr egul
a r
,p unc
tuaka n
d
duti
ful.H emu s
tn o
tl eaveanywo rkp e
nding.H eshouldp r
esen
t
himsel
fa sar ol
emo de
lf orothere mploy
ees.
10
.D ecisionPowe r:Ma nybusinessd ec
isi
onsa rema debya
bu
siness
man.I tisn ecess
a ryforag oodb u
siness
ma nt ha
th emu st
haveaq ui
ckdecisio
np ower.H es h
ouldnotma kedelayini mpor
tant
dec
isi
ona nditi sonlyp ossib
lewh enh eh asquic
kd eci
sionpower
tosettl
et hema tte
rs.
11
.C o
operati
ve:I tisn eces
saryf o
rag oo
db u
sinessmant ha
th e
sho
uldhavepassio
no fco-operat
ionf o
rh i
scolleag
uesa ndemploye
es.
Hes h
ouldtrustint eamwo rk.Wh enh eco-opera
teswi tho t
hersin
thebesti n
teres
ti fb usi
n essth e
nh ec ana ls
oe x pec
tt hei
r
co
-opera
tio,wh i
chi sn ecessar
yf ort hesuccessoft h
eb usi
ness
.
12
.T rusta
ble
:Ab usinessmans huldbeh onestandf airind eal
ing
wit
ho thers
,p eop
lewi llt rus
th i
ma ndt heywillc omea gai
na nd
aga
int od e
alwi thh ima ndh ewi l
lg ainmo rep ro
fit.
13
.Ab il
itytoP lan:P lanningisa ne ss
entialelementofb usi
ness
ac
tivi
ty.As ucc
essfulbus i
nessmana lwaysfirstd eter
minesthe
ta
rgetsforfutureandp rep a
resp l
ansa ndbudgett oa c
hievethese
ta
rgets
.Att heen do feachy ear,hec omparesthea c
tualresul
ts
wit
hp redet
erminedtargetsa ndp o
intsofeffici
encya nddefic
iency
ar
en ominat
edi no r
dert og eth el
pfromt hemi nf utur
ep lan
ning.
Soag oodbus
inessmanmu s tbea ne x
p er
to fbusin
e ssplannin
ga nd
or
ganis
ation.
14
.Ma nager
ialSkills
:Ab usine
ssmanh astoma na
gea llthebusi
ness
ac
tivi
ties.Soh es ho
u l
db ea ne x
pertofma nagerialskill
s.Iti s
of
tensaidthatag oo
dma na ge
risag o
odbusiness
man ,somanagement
ski
llisn ece
ssaryf oras ucc
essfulbusin
essman.
15
.I nnova
tive:Newc ha
ng esandd evelo
pmentsaret akingp l
acein
bu
sinesslikee ve
ryo therf iel
do fl ife
.I ti salld ueton ew
inv
entionsands ci
entifica ndt ec
hnolog
icald e
velopments
.S oa
bu
siness
mans houl
da lwaysb ereadytod evel
opa nda ppl
yn ewr u
les
fo
rt hea dv
ancemento ft heb usin
ess.
16
.S i
ghtedne
ss:Ag oodbusinessmanalwaysh asane yeonh ispast
per
for
ma nc
ea ndt hinksa bouth isfuture
.H es houldb ea b
let o
fo
reca
sth isfutured emand.H es houldproperl
yp lana ndp ro
duce
good
sa nds er
vice
st ome eth isfutur
ed emandi no r
dertoe ar
n
maximump rofi
t.
17
.F inanci
alSoundness
:T hesucces
softheb us
in e
ssmostl
ydepend
s
uponthefinanci
alsoundne
ssoft hebus
inessman.Withoutsuf
fic
ien
t
fundsn obusi
nessc a
nr unp rope
rly.Ast heb usi
nesse xt
ends
,it
earnsmo r
ea ndmo reprofi
ta ndt heextensio
no ft heb u
sine
ss
demandsexcess
ivef i
nance,soag o
odbusiness
ma nshoul
dn otonl
y
bef i
nanci
allysoundb u
ts houl
da ls
ok nowt hes ki
llsoffinanc
ia
l
management.
18
.E xperienc
e:I tisr ig
h tl
ys ai
dt ha
ta no ldi sgold.Soitis
neces
saryforthesmoothrunningofthebusines
st hatabusi
ness
man
shoul
dh avemuche xp
e r
ienc
eo fbusi
ness
.Ane xperi
ence
dp er
soncan
earnmorep r
ofi
ta scompar
edt oafreshe
ra ndcab ec
omeas uc
ces
sfu
l
busi
nessman.
19
.C ommun i
cati
onP ower:An umbe
ro ftimesab usi
nesshasto
addre
ssh i
semp l
oyees
,a t
tendimp o
rta
ntme eti
ngsa n
dh astocon
tac
t
withc ust
omersandwi tho therpeopl
e.Ifh eg a
se ff
ecti
ve
co
mmu nica
tio
np owert h
enh ec animpres
sa ndc onv
incetheo t
her
s
andi tisv eryimporta
ntf ort hebusi
ness.
20
.L e
adershi
pQ ualiti
es:Ab us
iness
mani st heleaderoft h
is
co
n c
erna ndleadersh o
uldl e
adf ro
mt hef ron
t.Wh e
nt heleade
r
iscompetent
,e verybusin
essa ct
ivit
yi sp er
formedsmoothl
y.Soa
goodbusine
ssmani sthatwh oh asalltheq ualit
iesofl e
ader
shi
p
ino r
dert oextendt hebusinessandtoe a r
nmo rep r
ofit
.
B
usinessE nv
iron
me nt
Thes umtotalofa l
lt h
ingswh ethe
rinternalore xte
rnaltofir
ms
andi ndus
trywh i
cha ffe
ctt heo r
ganis
atio
na ndtheiropera
tio
n.
Thet erm'busi
nessen v
ironment'conn
otese xt
ernalfor
ces,fac
tor
s
andi ns
titut
ionsthata r
eb eyondthecontrolo fthebu s
ine
ssand
theya f
fectthef unc
tioni
ngo fab usin
esse nterpr
ise.
ModernB usi
n e
ssE nv
ironment
I tisd ynamicbecauseofi tseverchang i
ngmo od.
I tiscompeti
tiveb ec
auseo ftra
del i
beralisa
tionwhwret h
erea r
e
nostri
ctc ri
teriat oe n
tero rexitt heb usines
swo r
ld.
I tisc hal
lengingfort hosewh oarep arto fth i
sbecaus
et hey
hav
et od oal otofh ardwo r
kt ok ee
pp a cewithitsdynamism.
F ea
tureso fMo dernB us
inessE nv i
ronment
1
.B u
lkS izeo fB usi
ness:T hema ssproductionh a
sbecomea n
int
egralpartofmo d
ernb usi
n e
ss.A svolumewi the xp
ectedlower
co
stsrises
,i th elp
st oa t
tainh i
gherrateso fo ut
putatl o
wu nit
co
st.Ith asbecomeac ommons tra
tegytoc opeu pwithcompeti
tion
andearnh igherp ro
fit
s.
2.Divers
ifi
cation:Present
ly,everybusin
e s
sma ninves
tshiscapi
tal
ind i
vers
ifiedeconmica ct
iviti
ess othath ec ana vo
idn eg
ative
eff
ect
so fma rketf l
uct
u a
tions.Mnayf ir
msi nvestthe
irf u
n d
si n
dif
fer
entma rketl o
cati
onsa ndforei
gne conomiesinorde
rt oavoid
theimpactofadv er
sebu s
inesssit
uation
s,s ucha s
,r e
ces
sion,high
inf
lati
on,lockout,strikes,e t
c.
3.C h
angei nC onsumers'T ast
ea ndP reference
:T hetastesand
pre
ferenc
eso fmo der
nc onsumershavec ompletel
yc han
gedb ec
ause
ofchangeins tandardo fliving
,c o
n s
umptionp atte
rn,techno
logy
advan
cementetc.N oe
,p eop
les pe
ndmo remn eyo nserv
ice
s.Al arge
pro
porti
ono fconsumers
'i ncomeh a
sb eens pentone nt
ertai
nment,
ele
ctr
onicg ad
gets,andl uxuries
.Mo der
nc u st
omerp r
efe
rsq ual
ity
pro
ductsrathert hanch e
apo ne.
4.C hang
ei nD istri
butionC hann
el:T her evolut
iona
ryc ha
ngei n
tec
hnolo
gyh asd rast
ical
lyc hange
dt hec onventi
onaldis
trib
u t
ion
sys
tem.I nt
roductio
no fe -co
mme r
ceh asn arroweddownt he
dis
tri
butonc h
ann el
.N owadays,fir
mso ffert hei
rp ro
duc
td irec
tly
tothec ons
umert hr
ought hewe bs
itesort h ei
ro wnoutlet
s.
5.Glob
alis
ationofB usi
n e
ss:Mo d
ernbusinessh a
sn o
wb e
comeglob
al.
MNCsa redominatingth eg l
obalmarkets.T heg over
nmento f
dif
fer
entc o
untri
e sarealsolibe
rali
singtheire co
nomie
sbya l
lowing
fo
reigncountr
iest oentertheirdomesti
cma rk e
ts.Theme rg
ersand
acq
uisi
tionsacrossthenati
onalbound
ariesh a
vea l
sobeeninc
rea
sing
thepresenceofb u
sines
sf i
rmsi ni nt
e rna
tio
nalma rket
.
6.Emergenceo fI n
ternat
ionalOr g
anisatio
n:Wi ththeincre
asein
cro
ssborde
rt rade,t herol
eo fv ar
iousi nt
erna
tionalins
tit
utio
ns,
suc
ha sWT O,I MF,Wo rldBanka n
dr eg i
ona
lo rgani
sat
inslike
SAARC,E Ua ndN AFTAh asalsoincr
eased.T he
seo rg
anis
ati
onsset
rul
esa ndr eg
ulation
sf orinternat
ionalt r
ade.
7.IntenseC ompetit
ion:G l
obal
isati
ono fe co
nomiesh a
sincre
ased
thecompetit
ioni nin t
ernat
ionalaswe lla sdomesti
cma r
kets
.In
pre
sentbusinesss ce
nario
,n of i
r mwa ntstor emainwithi
nt he
reg
ionalbo
u nd
a r
iesofac ount
ary.T heye nt
erinternat
ion
almarket
toexplor
en e
wb usi
nessposs
ibilit
ies
.
Fact
orsI nfl
uenc
ingB us
inessE nvi
ronment
InternalF acto
rs
Exter
nalF actors
*E mploy
eesMa n ag
ement *
MarketComp e
tition
*F ina
n c
ialC apaci
ty
*R ule
s&r e
gulatio
nso fgovernment
*B usi
nessC ult
u re
*E xis
tenceo fs up
plier&c ustomer
s
*S t
ructu
reo fth ebusi
ness *
Advert
isi
ng&Me d
ia
Int
ernalF ac
tors
Thesearet ho
sewh i
cha r
eu ndercont
rolo fbus
in es
s.Theyallare
par
to fbusiness.T heyallaffec
twe akn es
sa nds t
rengt
ho fthe
bus
iness
.S omeo ft hei n
ter
na lfact
orsa re:
1.Employe
e sMa nage
me nt
:P e
rformanceo fworkersaff
ect
swo r
king
ofcompany.T heya llareresponsi
blef o
rt hes ucc
essandfail
ure
oftheb us
iness.Al lemploy
eess hou
ldb ema nagedandmo ni
tor
ed.
Manage
rss houldg ui
det he
mt o
wa r
dsc ompany'
sg oal
s.
2.Fi
nancia
lC apacity:Finan
cei sonei mporta
ntf ac
torfo
rr un
ning
busi
ness.Mo neyaffec
tst hesucc
essandf ailu
reofe ve
ryb us
iness
.
Busine
ssc arri
esi t
sa r
eao foperat
io
n saccord
ingtoitsb u
dget.So,
itsfiances hou
ldb epropertoc ar
ryo ni tsrequi
redo pe
rati
ons.
3.B us
inessC ultur
e:I tr e
fer
st othee t
h i
csandmo r
alsfoll
owed
inbusines
s.T hisisimporta
ntfortheproperfunc
tio
ningofbusine
ss.
Everyemp l
o y
eei sgivenchancetoparticipa
teindecis
ionma kin
g.
Alltopma nager
sa ndeveryemploye
es houldtak
ed e
cisi
ont o
gethe
r.
4.S tr
uctureo ft heB u
siness
:I treferst othecomposit
ionof
managementt eamo fcompany.T hi
sc omposi
tio
ns hol
db ep r
oper
cont
aininge nog
hme mbers.Ita f
fect
st hed ec
isi
onma kingforthe
busi
ness.Ifc o
mp o
sit
ionisp r
operthenq ui
ckd e
cis
ioncanbet a
k e
n.
Delayind e c
iso
nma ki
ngma ya ff
ectth ep e
rfo
rmanceofb us
iness
.
Exter
n a
lF actors
Thesefactorsareexternaltothebusiness
.T he
yd onotcomeu nd
er
thecontro
lo fbusin
ess.Ex t
erna
lf c
to
rsn eedtomonito
re ver
yt i
me.
Theyi nf
luencet h
ewo rkingofthebusiness.So
mee xterna
lf a
cto
rs
are:
1.Ma r
k e
tC o
mpetiti
on:I tref
erstoe xisten
ceofotherbusine
ssin
marketingg i
vingc o
mpetiti
on.E ve
ryb usine
ssn e
edstof acethe
toug
hc ompetiti
oni nthema rket
.I tn eedstobri
ngu niqu
enessin
itsproduc
tsa nds er
vices
.E ff
ici
encyi nb us
ine
ssh el
psi nbeati
ng
compet
itio
ni nthema rket.Ith el
psinp r
ovi
dingqualit
yg oo
dsat
lowc o
st.
2.R ul
es&R egula
tionsofG overn
men t:E v
erybusi
nessn eed
st o
foll
ows o
mep r
inci
plesforitsoper
ati
on.T heseope
ratio
nsa f
fec
tt h
e
funct
ioningofth ebusi
ness.Rulesared i
ffer
entbusi
ness.Forsome
theyarestrictandforsomet h
eya r
eligh t
.F o
rexample,thetoba
cco
indus
tryh ass t
rictrulestofollo
w.I ti sh a
rdfort h
emt os er
ve
theircustomers
.
3.E xist
enceo fS uppl
ier&c us
tomers:S upp
li
era f
fectsthe
perf
ormanceo ftheb usi
ness.Non-ti
me l
ys uppl
yo fmateria
lswi l
l
affe
ctb u
sinessoperat
ion.Suppli
eraffectsthecos
to fbusi
ness.So,
exi
ste
nceofchea
pa ndthebes
ts up
pli
eri sgoo
df o
rb u
sin
ess
.
Avai
li
bil
tyofenoug
hc u
sto
mersa f
fe
ctstof a
cecompe
tit
io
nt o
at
tra
ctmoreandmorecust
omer
s.
4.Advert
is
ing&Me dia
:Itr e
ferstolevelofaware
nes
sa b
out
bus
ine
ssinma r
ket
.I fnoinfo
rmati
onregard
ingbusi
nes
st o
cu
sto
mersthe
nb u
sin
essca
n'trun.So
,busi
n es
sshoul
dtryit
sbest
tocre
ateawar
enes
samonglar
gen o.
ofpeo
ple.Prop
erchann
elsof
medi
ashoul
dbesel
ect
edtocov
erlarg
ea r
ea.Thisfac
to
rhasdir
ect
inf
lu
enceonthebusi
nes
s.
Mode
rnB u
sin
essVST r
adi
onalBusin
ess
Mode
rnB us
ine
ss
Tra
dio
nalB u
sin
ess
*Highl
ycompe
tit
iveenv
iro
nme
nt *R
ela
ti
vel
ysi
mpl
e
pr
odu
cti
ontec
hnol
ogy
*Useofrobo
ti
cs
*Most
lymanual
*Init
iat
en e
wi n
dust
ri
es *
Co
nce
rnedpri
mar
ilywit
hi n
ter
nalmat
ter
s
*Flexi
bl
ep r
odu
cti
onsys
tem *L
abo
ur&
ma
teri
alcos
tswereeas
il
yiden
tif
ia
bl
e