What is Business, Types of Business with their Definition, Management

 

State Board of Technical Education, SBTE

Mechanical Guruje

Management - Business Overview

What is Business ? 

Business is an Economic activity which involves the regular production or distribution of goods and services with the object of earning profits through the Customers Satisfaction or according to the people needs.

Business create a lot of employment opportunities for the society. It has a great importance in modern economy and also in now days life style.

There are producers, consumers, owners, users, employers, and employee all are connected to each other with the business purpose.

Types of Business - 

Business generally divided in three enterprises according to work type- 

• Service
• Trade
• Manufacturing

Now lets discuss each part in details....

Service :

In Service, we provide service to the Customers. These are provided in intangible form. in the Service there is no physical goods are provided to Customers, or buyer to seller. It is totally different than trade & manufacture enterprises.

Service can be provide through the Government or by any other business/Company.

Example :

Service provide for the help of Customers like communication, Transportation, Entertainment, Banking, Postman, Hospital, School, Colleges, Call Centre, all these provide service to the Customers.

Manufacturing :

Manufacturing Enterprises is the Major enterprises in which all the products are made. Here the Products are made from the raw material with the help of many machines and many engineering processes.

There are big and complicated machines are used for the manufacturing of any particular product.

All attention are on the needs of the Customers. The Product are made according to the need of the customers.

Example - 

Clothes, Food items, Groceries, Accessories, Electronic Appliances, Domestic machines, Furnitures etc.

Trade :

Trade Enterprises distributes the goods to the customers or retailers the product which manufactured by the manufacturing enterprises.

The Selling and Buying process comes under the Trade Enterprises. The exchange of Product form Manufacturing Company to the Wholesale, Retails, Customers these are are known as Trade.

Example -

wholesaler, Retailer etc