बिज़नेस की परिभाषा बहुत ही simple है. यह एक ऐसा इकनॉमिक सिस्टम या ऑर्गनाइजेशन होता है जो कोई प्रोडक्ट या सर्विस को गवर्नमेंट, कंस्यूमर आदि को बेच कर पैसे कमाना होता है.

There are six basic types of e-commerce — Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C), Consumer-to-Business (C2B), Business-to-Administration (B2A) and Consumer-to-Administration (C2A) — and all of them represent a different purchasing dynamic. These risks include inventory, labor, overhead or supply-chain problems. Because most e-businesses do not have large physical locations or warehouses, they must rely on a supply chain for getting goods to consumers.

Working Note:

WN1 Calculation of Sale Price

Profit making is essential in business because of the following reasons :

(i) Incentive - Profits provide the basic stimulus to establish and operate business enterprises. Profit is the driving force behind private enterprise. It is the return on capital and reward for the risk of entrepreneurship.

(ii) Survival - Profit covers the risk and costs of staying in business. Profit helps to maintain intact the revenue generating capacity of business. Through profits, an enterprise can replace obsolete machinery and equipment.

(iii) Growth - In order to expand and grow, an enterprise needs funds. Retained earnings or ploughing back of profits is an important source of capital for expansion and innovation. Profits provide the means of self-financing.

(iv) Measure of efficiency - Profit is an important measure of success for a corporation. Profit is the criteria by which people evaluate the efficiency and performance of business enterprise.

(v) Prestige - A losing concern has no goodwill or image in society. Accumulation of wealth through business earning has enabled people to build business empires. Society, too, can progress only when human effort yields profit because a losing organisation leaves less for all to share.

In financial accounting, an asset is any resource owned by a business or an economic entity. It is anything that can be owned or controlled to produce value and that is held by an economic entity and that could produce positive economic value. Examples of assets include: Cash and cash equivalents. Inventory. It is often deemed the most illiquid of all current assets - thus, it is excluded from the numerator in the quick ratio calculation.

Tertiary industries are concerned with the firms that provides all kinds to services including consumer services, transportation for people, banking etc. But, Auxiliaries to trade are the activities that facilitate the trading process only. There are various auxiliaries to trade like banking and finance, advertising, warehousing etc.

Therefore, tertiary industries are wider in scope than auxiliaries to trade and they cover all auxiliaries to trade.

1. Sole Proprietorship: Sole proprietorship refers to a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks.
2. Hindu Undivided Family Business: It refers to a form of organization wherein the business is owned and carried by the members of the Hindu Undivided Family (HUF).
3. Partnership: Partnership is the relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all.
4. Cooperative Society: Cooperative society is a voluntary association of persons, who join together with the motive of welfare of the members.
5. Joint Stock Company: A company is an association of persons formed for carrying out business activities and has a legal status independent of its members.
6. Multinational Corporations: An MNC is a company whose business operations extend beyond the country in which it has been incorporated.

The steps taken by promoters in the promotion of a company are as follows:

(i) Identification of business opportunity: The first and foremost activity of a promoter is to identify a business opportunity

(ii) Feasibility studies: The promoters undertake detailed feasibility studies to investigate all aspects of the business they intend to start. Depending upon the nature of the project, the following feasibility studies may be undertaken, with the help of the specialists like engineers, chartered accountants etc., to examine whether the perceived business opportunity can be profitably exploited.

(a) Technical feasibility: Sometimes an idea may be good but technically not possible to execute. It may be so because the required raw material or technology is not easily available. For example, if the raw material is not produced in the country and it cannot be imported because of poor political relations then the project would be technically unfeasible until arrangements are made to make it available from alternative sources.

(b) Financial feasibility: Every business activity requires funds. The promoters have to estimate the fund requirements for the identified business opportunity. If the required outlay for the project is so large that it cannot easily be arranged within the available means, the project has to be given up

(c) Economic feasibility: Sometimes it so happens that a project is technically viable and financially feasible but the chance of it being profitable is very little. Promoters then take the help of experts to conduct these studies.

When these investigations show positive results, then the promoters may decide to actually launch a company and move to further steps such as promoters have to select a name for the company and submit, an application to the registrar of companies of the state in which the registered office of the company is to be situated After that Promoters have to decide about the members who will be signing the Memorandum of Association of the proposed company. The promoters assist certain professionals such as mercantile bankers, auditors etc in the preparation of necessary documents which are required to be with the Registrar of Companies. The promoter takes up various steps to prepare certain legal documents, which have to be submitted under the law, to the Registrar of the Companies for getting the company registered. These documents are Memorandum of Association, Articles of Association and Consent of Directors.

Consumption of goods and services, production and distribution are known as economic activities. The main aim for economic activities is production of goods and making sure that it reaches the end consumer.

Therefore business is considered an economic activity because it ensures production, sale, distribution of goods and services in order to satisfy consumer wants, with the purpose of making good profits.

An example of an economic activity within a business is a business distributing and delivering its products to the store.

Consumption of goods and services, production and distribution are known as economic activities. The main aim for economic activities is production of goods and making sure that it reaches the end consumer.

Therefore business is considered an economic activity because it ensures production, sale, distribution of goods and services in order to satisfy consumer wants, with the purpose of making good profits.

An example of an economic activity within a business is a business distributing and delivering its products to the store.

1. Audit and Accounting

Normal budgeting, accounting and audit procedures are applicable to departmental undertakings just like government departments.

2. Managed by Civil Servants

The departmental undertakings are managed by the civil servants, who are subject to the same services condition as applicable to civil servants of the government.

3. Sovereign Immunity

Without the consent of the government, a departmental undertaking cannot be sued at all.

Services are essentially intangible activities which are separately identifiable and provide
satisfaction of wants. We cannot kept it-in stock. Their purchase does not result in the ownership of anything physical. Services involve an interaction to he realised between the service provider and the consumer.
Goods are physical products capable of being delivered to a purchaser and involves the transfer of ownership from seller to customer. Goods also refer to commodities or items of all types, except ,
services, involved in trade or commerce.

Profit is the primary motivating force for an economic activity, reasons for the same are:

1. It is essential for survival and growth of business.
2. It measures the efficiency and the progress of a business.
3.It measures the worth of an owner's investment.
4.It act as a means of self financing, it helps to attract capital from outside.
5. It increases credit worthiness of business.
6.It is the reward for taking risk, it motivates people to start or invest in a business.

Global Depository Receipt (GDR) and American Depository Receipt (ADR).

Warehousing: It means godowns facilities. There is generally a time lag between the production and consumption of goods. This problem can be solved by storing the goods in warehouses.

Innovation: It means developing new products and their multiple uses. Old customers can be maintained and new can be attracted by innovation only.

any person born into the family (boy or girl) up to the next coming three generations is a part of the HUF. These members are the co-parceners. The head of such a Joint Family Business is the eldest member of the family, the “Karta”.

The business consists of a number of components. These components and parts build the structure of a business. Thus, the structure of a business refers to the components and parts of the business comprising different classes of activities that are performed. Business activities can be broadly classified into the following three categories:

• Industry
• Commerce
• Services Enterprises