12/23/2023 0 Comments Aim meaning business![]() The business aim is the general and long-term goal of an organization, the central core purpose of its business activity. FINAL ACCOUNTS – PROFIT AND LOSS ACCOUNT.DIFFERENT TYPES OF BUSINESS ORGANIZATIONS.Previously, the approach is ‘to sell what is produced’, but now the approach is ‘to produce what is demanded’. it has been turned from producer oriented activity to consumer-oriented activity. Further, commerce encompasses two types of activities, trade and auxiliaries to trade.įrom the past few years, the entire concept of business has undergone a drastic change, i.e. Commerce: In simple terms, commerce refers to the buying and selling of goods for value, and includes all those activities which facilitate the transaction.The industry is further divided into three broad categories primary industry, secondary industry and tertiary industry. ![]() This involves production, processing, mining of goods. Industry: Industry implies the economic activities that are associated with the conversion of resources into goods that are ready for use.This can be done by making available quality-riched goods easily available to them, at reasonable prices. The consumer is regarded as the king, and so all the activities of the business are aligned towards the satisfaction of consumers. But, if they are not, there are chances that they will look for substitutes. Consumer satisfaction: The aim of business is to supply goods and services to consumers, so as to satisfy their wants, as when the consumer (final user) is satisfied, he/she will purchase the goods or services.Legal and Lawful: No matter, in which type of business the company is engaged, it should be legal in the eyes of the law, or else it will not be considered as business.It may be possible that the business earns a huge profit or suffer heavy losses. the amount of money which the business is going to reap is not certain. Uncertain return: In business, the return is never predictable and guaranteed, i.e.However, the factors that affect business are uncertain and so does the business opportunities, which can be a shift in demand, floods, fall in prices, strikes, lockout, money market fluctuation, etc. Efforts are made to forecast future events and plan the business strategies accordingly. Element of risk: Risk is the key element of every business, concerned with exposure to loss.It is the spine of business, which keeps the business going, in the long term. Profit earning: The basic purpose of business is to make the profit from its activities.So, to constitute business, the dealings must be carried out on a regular basis. an isolated transaction of exchange of goods or services will not be considered as business. ![]()
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