A business is defined by Wikipedia as a commercial enterprise or an organized group that engages in commercial, or professional activity for profit. Most businesses are for-profit enterprises or non-profitable organizations that conduct primarily to meet a social objective or further an individual social cause. The scope of business activities extends far beyond the traditional business world. Some industries are classified as private companies, partnerships, or associations. Private companies are generally restricted to one geographical region while, partnerships generally have members from different regions.
To produce and sell better and cheaper goods and services at a higher rate of return. In a very simple sense business means to earn a profit by exchanging present goods or services for future ones. With the advent of Information Technology, businesses have become more dynamic. Goods and services offered by businesses are not necessarily of a physical nature but are performed by means of computer software, Internet, telecommunications, and other information technologies. Business man strives to increase his profits by using these technologies and computer applications to improve his business processes.
Everybody earns some amount of money as long as he exchanges his human wants for capital. Every businessman does not aim to earn a profit all the time; instead, profit is only the end result of his efforts. A businessman is only interested in earning profit when he sells some of his commodities, receives some payment as an incentive, or makes some distribution of his products. A businessman works for the satisfaction of his human wants. Therefore, if he does not satisfy his human wants, then neither will he be able to earn any money nor will he be able to satisfy his customers.
A businessman should know his economic objectives and the resources he has at his disposal. He should also estimate the amount of time, effort, and financial resources that will be required for carrying out the business activities. After knowing his economic objectives and resources, a businessman should determine which of the business activities will bring him most benefit, at least equal to his investment.
The term business refers to a human endeavor to earn profit by the exchange of services or goods with others. In this world, business refers to the division of human activities into two general classes: private and public. The activities of a public organization are directed at the welfare of the community and are performed for the benefit of its members. The activities of private organizations are directed at earning profits for its owners.
Every businessman should have certain knowledge about the nature of the goods that he plans to sell. He should be able to identify the target market. Since a businessman can only attain profit if he sells the goods that are in demand, he should know what goods are in demand. A businessman should be well informed about every aspect of the production process and the costs involved in production. He should also be well informed about the various techniques that he can use to increase the production volume of his goods. By understanding these things thoroughly, a businessman can increase the profitability of his business activity.