Types Of Businesses And Their Characteristics

Written by: Lilly Cobal
05/30/2019

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I think we all recognize now that pretty much everything around us is a business – from the computer screen to the desk where your computer is placed, everything is the chain of business. In this article, let’s talk about the concept of businesses and their characteristics in detail.

Definition of business:

The activity of selling and buying commodities, services, and products is called the business. The word “business” means “The state of being busy or engaging.” Every person is engaged in some important occupation. Business is the form of an activity pursued with the objective of earn profits by doing extraordinary things effectively and efficiently. For example

- The worker works in the factory or industry

- The teacher teaches in the school

- The clerk doing his office work

- A farmer cultivates its crops

Objectives of business:

Some of the purposes of businesses are:

  1. Economic objectives:

The primary economic purpose of a business is to earn as much profit and money as possible.

  1. Organic objectives

Organic objectives focus on:

* Try for business survival

* Win recognition and gain prestige from the society

* Try to grow.

  1. National objectives

National objectives of businesses are:

* Development of small businesses

* Development of individual skills and expertise

* Ensuring the social justice

* Export development and self-sufficiency

* Production with accordance with national priorities

  1. Human objectives:

Human objectives focus on:

* Participation

* Job satisfaction

* Development of human resources

* Fair deal with the employees

  1. Social objectives

Social objectives deal with the fact that business should obligate with society. It should obligate with the proper way of supplying the quality of god and services, avoidance of any antisocial and profiteering practices and provide the opportunity to its employees.

Top 6 businesses activities:

To run a business, there is essential to have enough time and money and make your business successful. It is vital to keep all of the business task manageable and being focused on the objectives of a business. It is important to note that six basic activities are required to makes you successful in dealing with your business program.

1) Customer service:

Product and services provided by the company play a significant role in a successful business. Besides, all of these customer services is the activity that comes in the priority list of business activity. Customer service helps to promote referrals from business existing clients as well as secure your new clients. The department of customer services provide direct contact with the existing customers and gives the best solution of their problem. The problems that may be faced by them are faulty products, issues with bills, and shipping error.

2) Budgets:

Implementing a budget for your business is an important task to keep the business cost down. For the small businesses, the budget consists of monthly allotment to cover insurance payroll and overhead. While for larger businesses, there are multiple departments which are engaged in long-term projects. It is crucial to have expected costs and revenue that update monthly basis, based on the new updated information.

3) Human resource:

For any well-order and well-organized organization, there is a need of dedicated human support that performs the particular task in a transparent way. If you lack the appropriate and well-dedicated HR personnel for the business task, it will provide you less productive task. It is necessary to make effective recruitment and selection process of human resource by conducting interviews, hire applicants, and determine the benefits packages for the human resource.

 

4) Accounting:

Accounting points out the money you take in and spend on your business. For businesses which are dealing with small level transaction per month or week, it is important to have periodic data entry. While in retail businesses, there is a large number of transaction that focuses on daily accounting. By keeping the focus on income and expenditures, it is essential to know the fact that where your business or organization loses money.

5) Marketing:

Without marketing, no organization and business can survive. The perfect an effective marketing plan gives the fantastic exposure of the business to a target market. Companies provide an effective marketing strategy through a trade magazine, television, or by using any social media app. For any business, it is essential to regularly review the marketing efforts to see which things provide your business with the maximum profit.

6) Sales:

Sales are the central part of all businesses. Sales depend on the industry you work, perform a demonstration in an effective means, and maintain contact with your client. It is necessary to work as a salesperson to deal with new client acquisitions.

Characteristics of businesses:

The following points are the four main characteristics of a successful business:

1) Buying and selling:

The basic activity of the business is trading. The businesses are involved in buying the raw material, stationary, property and plants or machinery. It also sells the finished items to its customers, retailer, and wholesaler. The business provides various services and good to all parts of society.

2) Continue process:

Business is not a single time activity. It is the continuous procedure of distribution and productions of goods or services. It is important to check your business regularly to gain and grow regular returns. The strategy of continuous improvement helps to enhance the profitability level of your business.

3) Production or trading of services and good:

If the business plan to sell a product, it has an option to either manufacture the product or purchase it an then add a profit margin to sell it further to their customers, Business is always concerned with purchasing the activity that concern with the purchase or production of goods for further sale. Services of sale consist of housekeeping, transportation, and security.

4) Risk and uncertainty:

Risk is the effect of uncertainty arising on the aims and objectives of a business. It is associated with every kind of business. There is two type of risk, one is non-insurance and other is insurance. The insurable risk can only predictable.

Purposes of businesses:

The main purposes of business are to engage in different works and earn a profit. All of the human activities are related to the production and manufacturing the goods and services for satisfying the human need and wants are called a business.


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