BUSINESS STUDIES
CH-1 EVOLUTION AND
FUNDAMENTALS OF BUSINESS
NOTES (FULL VER.)
INTRO >>
BUSINESS IS MAJOR ECONOMIC ACTIVITY WHICH
IS CONCERNED WITH PRODUCTION, SALE AND
DISTRIBUTION OF GOODS AND SERVICES
REQUIRED BY THE PEOPLE
BUSINESS STARTS WITH PRODUCTION AND ENDS
WITH CONSUMPTION
IN NUTSHELL, WE CAN SAY THAT BUSINESS
IS A WIDER TERM WHICH INCLUDE
INDUSTRY, TRADE, COMMERCE
WHAT IS MAKE IN INDIA ?
It is an initiative launched by the government of India on 25th Sept 2014 to encourage national as
well as multinational companies to manufacture their products in India.
The major objectives of “make in India” initiative are Job Creation and Skill enhancement in 25
sectors of economy.
25 sectors are as following :
1. Automobile 14. Mining
2. Automobile Components 15. Oil and gas
3. Aviation 16. Pharmaceuticals
4. Biotechnology 17. Post and Shipping
5. Chemicals 18. Railway
6. Constructions 19. Renewable Energy
7. Defence Manufacturing 20. Roads and highways
8. Electrical Machinery 21. Space and Astronomy
9. Electrical System 22. Textiles and Garments
10. Food Processing 23. Thermal Power
11. Information Technology and Business Process Management 24. Tourism and Hospitality
12. Leather 25. Wellness
13. Media and Entertainment
BUSINESS - CONCEPT
HUMAN BEINGS PURSUE DIFFERENT OCCUPATIONS TO
EARN A LIVELIHOOD
AND TO GET SOME PSYCHOLOGICAL SATISFACTION.
ACTIVITIES WHICH HUMAN BEINGS UNDERTAKE ARE
KNOWN AS HUMAN ACTIVITIES.
Business
Economic
Profession
activities
Employment
Types of human
activities
Religious
Non-economic
Parental
activities
Social
• Economic Activities – These activities are concerned with production, exchange and distribution of
goods and services.
• The purpose of economic activities should be expectation of money income which is used for further
creation of wealth or assets.
• Non-Economic activities- The activities which are undertaken by an individual with a motive of getting
psychological satisfaction.
• The end result of non-economic activities is not earning profit or creation of wealth but it gives
satisfaction
• When a farmer is producing crop for selling in the market, it is called Economic activity but when he is
cultivating crop for self-consumption then it is called Non-economic activity
IN THE MODERN TIMES, BUSINESS
INCLUDES THE ACTIVITIES AS FOLLOWS:
1. Creating customer
2. Converting economic resources into goods and services
3. Innovating new products or services
4. Marketing these innovative products
Characteristics/nature of business
Sales or
Exchange of
Production Dealing in
Goods and
or Goods or Uncertainty
An economic Services for Profit
Procurement Services on a of
activity the Earning
of Goods Regular Return/Risk
satisfaction
and Services basis
of human
needs
Market
standing
Innovation
Productivity
Objectives of business
Physical and
final resources
Earning Profits
Social
responsibility
Role of Survival
profit in
business
Expansion and growth
Symbol of efficiency or an Index of
Performance
Reward for Bearing the risk
Helps in gain Reputation or Goodwill
Classification of business activities
Industry Commerce
Primary Secondary Tertiary
Trade Aids to trade
Ind. Ind. Ind.
Extractive Manufacturing Constructive
Transportation Internal trade External trade Transportation
Ind. Ind. Ind.
Genetic Industrial Analytical Synthetic Processing Assembly
Consumer goods
Industry
Banking Retail Export Banking
Ind. goods Industry Industry Industry
Communicatio
Communication Whole sale Import
n
Insurance Entrepot Insurance
Advertising Advertising
