Business

Classes of Business Organization

The term “Business” is wide in meaning. It includes all those human activities made for the sake of earning profit through the process of production of goods or buying or selling of goods. A Qualitative Businessman starts a business for the sake of earning money, and money is earned by satisfying human needs and desires with certain things.

What are the Different Natures of Businesses?

Business activities can be of various kinds. These may be fishing, mining, agriculture, cultivation, banking or industry, whether these may be conducted by a Limited Company or by a Partnership firm or by one man, they assign duties to employees whether the business is done on the wholesale or retail level.

In short, every human activity made to earn income or profit is known as Business.

If the goods are produced to fulfill personal needs only, this activity cannot be called business. Earning of profit is the special mark of business.

As compared with commerce and industry the word Business is used in the wide sense. It also includes all those economic factors which help a man to earn profit by satisfying material, spiritual and mental needs of human beings.

There is a close relationship among Business, Industry, Trade and Commerce and they are therefore; taken in the same sense. But sometimes the difference in their meaning becomes very obvious.

Briefly speaking Business means earning profit & there are different types of business organizations, Industry means production, commerce denotes means of distribution and transportation of goods. Trade is considered as a part of Commerce.

Importance of Business Organization

The business organization is an act of grouping activities into effective co-operation for a specific objective. It is primarily concerned with the creation and distribution of utilities to earn the profit.

Its study reveals that it covers all spheres, of economic functions and it provides a common link between. the various factors of the business activities.

So effective cooperation among the various factors of production will increase the volume of profit of the enterprise. It guides us to the improved method of organization and operation concerning production, marketing, financing, transporting, and trading.

It restricts wastage of time, material and factory overheads which lower’ the cost per unit. It is to be noted that business organization teaches us all methods and principles of office organization and the best way of performing the secretarial functions.

It provides the adequate solution to many business problems. So it has enabled the businessman to conduct the business affairs efficiently. 

Business organization thus consists of the skillful activities of the businessman with a view to promoting trades, commerce and industry

TOP 7 Classes of Organization

Industrial Organization

It is the organization of the industrialists and manufacturers who combine material through various factors of production and supply the finished goods or partly finished goods to the wholesalers.

Whole Sales Organization

It is an organization of the persons who directly purchase goods from the producers and sell them to the retailing organization in small quantities, He thus plays the role of middleman between producers and retailers, He keeps the stock of one or two goods in large volume. He deals in local or national markets.

Retailing Organization

This class of organization includes the persons who take over the goods from the wholesalers and supply the goods to consumers. So he is a link between the wholesalers and the consumers. He keeps the various kinds of goods in small quantity.

As he keeps close contact with his customers he knows their tastes, fashions and demands and he can provide valuable information to wholesalers and producers.

Financial Organization

This is the organization of the financial institution who provide the depositing and financing facilities to the public. It includes all scheduled or non scheduled banks.

Transportation Organization

The member of this class of organization provides transportation facilities to the public in order to shorter the space and create place utility.

Social Organization

This class of organization is formed with a view to promoting public welfare and for community development such as charitable institution, educational institution, hospital and other social and welfare association. It also plays a very vital role in creating the spirit for the service of man.

Government Organization

This is the organization of the various departments which are directly owned managed and supervised by the government. Such as District Council, corporation, railway, electricity, post and telegraph etc.

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