The scope of business is very comprehensive. It encompasses all human activities, which tend to satisfy needs and wants of the human beings living in a society. Let’s know more about nature and scope of business.
A large part of the business is concerned with providing the final or finished products or goods to the desired people.
Business is universal and everywhere. It is essential to ensure the production and distribution of goods and services to satisfy the economic wants of people at a profit.
The nature and scope of business are changing very quickly. The people who are engaged in business must have to cope with the changing environment because the people’s attitudes, habits, tastes, likes and dislikes, norms, beliefs, values, perceptions and motives add changing with the change of time.
Profit earning cannot be the sole motive of business activity. Businessmen do have a social responsibility too that must be met. Business organizations produce goods and services to generate profit but such activities create the impact on society as well as the whole community.
The responsibility of businessmen is to provide the goods and services in a way which is not harmful to the society.
The scope of the business system has considerably developed after the industrial revolution. The process of generation is now quite complicated. An organization is needed to determine what each person will do and how many authority each will have. The role of the business organization in various forms of business ownership is discussed in brief.
Meaning and Type of Industry:
“Industry” refers to the production of goods by manufacturing or processing. It converts raw materials into finished products and thus creates form utility. Goods delivered by industry may be “consumers’ goods” or “producers’ goods.” Customer goods are in the form in which customer wants them e.g. cloth, radio, television, foodstuffs, etc. The industry directly serves human needs and individual wants. Other businesses use Producers’ assets for further production e.g. machinery, factory, building, plants, tools, etc. Energy may be further divided into four distinct types.
- Genetic Industry: Genetic Industry is related to the reproducing, breeding and multiplying individual species of plants and plants and animals with the object of earning profit from their sale. The activities involved are rearing, breeding of animals, birds, and growing plants.
- Extractive Industry: The Extractive Industries involved with the extraction or bringing out products from natural origins. It supplies necessary raw materials to other enterprises. Examples of such industries are farming, mining, hunting, timbering, fishing, etc
- Construction Industry: This industry is affected by the construction, erection, invention or building products. Examples of such industries are the road, bridge, dams, canals, fabricating, construction, etc. In this type of primary production, materials are manufactured by other industry like cement, iron, etc.
- Manufacturing Industry: the term ‘industry’ refers to the manufacturing sector. This industry is mainly concerned with the production of different types of goods by using raw materials or semi-finished goods.
Other Content of Business:
- What is the Definition of Business?
- Components / Elements of Business
- Features / Characteristics of Business
- What are the Objectives of Business?