Business can be defined as the sum of all activities involved in the creation and distribution of goods and services for profit. Business management is the act of planning, organizing, directing and controlling business resources in order to attain some set objectives.
CLASSES OF BUSINESS
- Primary/Extractive Business
- Processing/Conversion Business
- Distributive/Commercial Business
- Services Business – Concerned with the provision or marketing of intangible benefits to ultimate users such as banking insurance etc.
- Define the following terms (a) Business (b) Businessman
- Mention four importance of business to the individual or society
RESOURCES OF BUSINESS
- Money: This includes all the funds available to the business such as cash, shares, working capital etc.
- Materials: This includes tools, machinery, equipment and raw materials required to operate the business.
- Management: This is the resource that plans, directs, controls and organizes other resources for operations to take place.
- Opportunities: These are identified chances calling for acquisition, creation, preservation or distribution of saleable values to customers.
OBJECTIVES OF BUSINESS
Objectives are the ends towards which an activity is aimed. The objectives of a firm are the purpose for which the firm is in business. Therefore, it is a statement of where a business organization wants to be.
The Objectives of Business
- To maximize profits
- To minimize losses
- To stay solvent
- To produce goods and render services.
- To provide employment opportunities
- To protect the interest of its workers
- To achieve, maintain or increase a particular market share
- Social objectives e.g. payment of taxes
- Define Management
- State five objectives of a business.
- Which of the following is not a business resource?
(a) Man (b) Materials (c) Markets (d) Machines
- Which of the following is the most important business resource?
(a) Money (b) Management (c) Materials (d) Man power
- Which of the following clearly defines business
(a) The process of planning, co-ordinating, organizing and controlling (b) The act of buying and selling (c) Sole proprietorship, partnership and public limited companies (d) Any production activity undertaken for profit motive
- Which of the following is the primary objective of business? (a) Maximization of sales (b) Maximization of output (c) Maximization of profit (d) Maximization of costs.
- In which class of business would doctors, teachers and entertainers be grouped
(a) extractive (b) services (c) processing/conversion (d) commercial
- List two objectives of a firm (business organization).
- Who decides or fixes these objectives in a business organization