BOS Chapter 1: Nature of Business
Document Summary
Explain the meaning & scope of business. A business is an economic activity done with the intent to earn an income (profit). Economic activities include the production of goods or the purchase of goods at a price that can later deliver profit. Along with profit, the other objective of a business is to earn a consumer for repetitive sales which is only possible by providing good services and by satisfying the customer. Scope of business - there are two main branches of business, viz. Industry refers to the production of goods and/or services required in the market. Breeding, saplings, etc: manufacturing: this includes textile industries, machinery and appliance industries, construction: construction of public and private properties such as roads, dams, buildings, etc, service: banking, insurance, transport, and other professional services such as. Thus, an industry undertakes the production of goods and services for sale or exchange at a reasonable profit. Commerce is an organised system for the exchange of goods.
