Business organisation unit 1 for 1st semester bca students., Lecture notes of Business Ethics

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Unit 1

Introduction to Business

Unit 1

1. Business : Meaning, Nature, Scope, Social Responsibilities of Business
2. Objectives of Business
3. Essentials of successful business
4. Functional areas of business
5. Concept of business organisation

Human activities: Meaning

All the activities in which we, thus, participate from

morning till night are called ‘human activities’.

If you closely examine the human activities, you will

find that some of these produce economic benefits e.g.,

working in a factory or in an office or at the farm

Some other activities like brushing teeth, taking

breakfast, going to school, playing, cooking food for the

family, etc., do not produce any direct economic

benefits

Classification of human activities

Persons who participate in such activities do not get any direct economic benefit. Non-economic activities are carried out with the motive of providing services to others with a non- monetary objective. An example is the working of Non-Government Organisations (NGOs)

Examples of Non Economic activities a) Charitable activities b) Household activities c) Voluntary skilling

Household activity: like tidying, washing dishes, child care, sewing garments or home economics.

VOLUNTARY SKILLING

Voluntarily skilling: People who facilitate marginalised

individuals in achieving employment by training in skills.

For example, a doctor works in the hospital, a teacher working in a school, an employee going to his office, a farmer working in the field etc. They are all doing this to earn his or her livelihood or to acquire wealth.

Economic activities Vs Non Economic activities Bases of Difference Economic Activities Non-economic Activities Meaning These are the activities which are performed for financial gain. These activities generate revenue which may provide financial stability to the organisation for example working in the factory, office etc. These are the activities which are performed to fulfill social, psychological and mental necessities. For example functioning of NGO, like help age, save the children, CRY, etc.

Sectors of economic activities

a) Primary economic sector : Primary sector is a sector which is related to withdrawing materials required for production of goods. These are the activities which are dependent upon nature. The examples of this sector are: agriculture, breeding, forestry, fishery, hunting, and mining. b) Secondary economic sector : Secondary sector relates with the goods produced by the raw materials of primary sector. Its example includes: clothes made by the raw material of cotton, jute etc, the Indian Khadi Industry, the construction of houses etc.

BUSINESS, PROFESSION AND EMPLOYMENT

We can further classify these economic activities into three

groups:

(a)Business,

(b) Profession, and

(c) (c) Employment.

BUSINESS

Any activity carried primarily with the object of earning profit can be called a business activity. This objective of earning profit is achieved by production and/or exchange of want satisfying goods and services. Therefore, we can define business as “any activity concerned with the production and/or exchange of want satisfying goods and services carried with a view of earning profit”.