Business is an economic activity that depends on many conditions or elements. Most of the millionaires in the world are business people.
The elements of a business are considered or defined separately depending on the existence of the business.
The main elements of business are discussed below.
Production is the process of creating, creating and collecting something that has value for the consumer. It is also called the act or process of production.
If we want to separate them, there are 4 types of production . First, one-piece production, second, batch production, mass production and continuous production.
If you dig deeper, there are 7 factors of production. It is land, work, factory, construction, tools, machines, raw materials.
What is the importance of production?
The core value is that it helps create value through the application of various factors of production.
It improves the lifestyle of the customers and remains an institution of welfare for the employees.
Distribution means that the product reaches the consumer through another process.
The main purpose of a business is to provide a product to a consumer or customer.
Therefore, the main task of the company is to deliver the product to the actual consumer. Such a distribution process consists of more than one purchase and sale.
Intermediary entrepreneurs are involved in the distribution process to make a profit.
3. Functions of auxiliary production and distribution companies:
Enterprises are not only economic activities related to the production and distribution of goods, but also other economic activities that facilitate production and distribution, such as banking, insurance , storage, transportation, advertising, etc.
By fulfilling all these tasks, the company overcomes various obstacles that complicate production and marketing.
4. Profit motive:
The main purpose of business is to make a profit.
The main objective of enterprises and business enterprises is to make a profit by making a profit.
Entrepreneurs create and manage business organizations and take moderate risks in the hope of profit by investing money, labor, and talent.
Risk is one of the most important aspects of business. The risk is that the company will not make a profit.
Transactions in business do not exclude the possibility of future profits and losses.
Almost no business or transaction is without risk.
There are many risks in business and they are strategic risk, financial risk, operational risk, compliance risk and regulatory risk etc.
You know, capital is the life blood of a business and without it you cannot start or start a business.
Anyone who shows initiative and risk can apply. But in practice, it is impossible to create and manage a business if the necessary funds are not generated.
Four different types of financing activities help your business grow: account financing, crowdfunding, venture capital, and angel investors.
7. Value for money:
You know, every trade has a monetary value.
Any transaction or exchange that cannot be measured in money cannot be called a business transaction.
Therefore, the financial value of the transaction is measured as the existence of the business.
Business structure requires individual, institutional and government initiative, what a job!
The existence of any commercial organization cannot be imagined without the initiative and effective efforts of the entrepreneur.
You know, entrepreneurship is very important to our society because it improves the standard of living and promotes innovation.
Successful entrepreneurs have succeeded by increasing their confidence. You also have the ability to learn from mistakes.
9. Legal force:
The commercial activity must be acceptable under the law in force in the country or society.
Any activity outside of society and law cannot be considered a business.
10. Public welfare and service purpose:
Although the main purpose of business is profit, the entrepreneur should operate with the attitude of welfare and social service.
By producing and marketing quality products on time according to consumer requirements, companies bring great benefits to people.
Finally, almost all human activities are not commercial activities.
Business is an economic activity in which only the specific elements of economic activity mentioned above are present.
That is why business is essentially called a dependent asset or economic activity.