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Sunday, 1 November 2020

Discuss about the characteristics of business vis- á- vis other economic occupations

Whilst business as an economic occupation is westerly diverse, yet only a small portion of the population, more so urban educated population engages in it.for example of all of view chartered accountancy, only a small percentage is going to start a business. Since she is a professional qualification most likely you are going to practice as an independent professional or would take up a paid employment somewhere. We have does introduce to other distinct occupations, viz., employment and profession.a brief description of these two occupations would be in order before we elaborate the distinguishing characteristics of the business.

7 Points About the characteristics of business vis- á- vis other economic occupations

1. Employment:

employment is a contract of service between the employer and employee. The contract elaborate job description and the period compensation known as wages and salaries the term wages usually denotes factory workers; salary denotes office staff, managers etc. One has to undergo a detailed process of recruitment and selection for once engagement in in employment. Usually minimum qualifications-educational / technical / professional and prior work experience are prescribed. Freshers may be initially recruited as interns and required to undergo training. And one is expected to perform as per the terms of employment and the performance targets assigned from time to time. There is a minimum as viewed income tenure certainty and . reasonable opportunities for career progression via promotions.

2. Profession:

profession is rendering of service of a specialised nature, necessity prescribed qualifications for  under a certificate of practice from an established certification / accreditation / examination and assessment body that also imposes a code of conduct.professionals can be received as independent practice or under a contract of employment to. Accountancy architecture designing, engineering, lok medicine and increasingly event management are assuming the attributes of a profession. In certain professions example medicine if in employment the professions are entitled to "non practicing allowance" too.

3. Job creator, not job seeker:

business as an institution is a source of substance directly to the business owners and employees and indirectly to all those who derive opportunities from it. This is a unique characteristic of business that separates it from other occupations. Yes, professionals in practice may also generate some employment but certainly not in numbers that business is capable of generating.

4. Provides momentum to economic growth: 

what is economic growth? It is persistent increase in a country's gross domestic product GDP post-op what is GDP? It is the value of all the goods and services produced in a country during a particular period. Business output comprehensively contributes towards GDP and economic growth. How is economic growth distinguishable from economic and development? Where is growth mein really implies increase in GDB numbers, economic development implies diversification of an economics capabilities and improvement in the quality of life of its people. Business through research and development education and training and development of employees and by sheer guts and collage of experimenting and innovation brings about development.in fact, it is pertinent now to introduce that an interviewer hair fall stop in common parlance the terms business person in a tuner are synonymous.even we shall be using these two terms interchangeably.however, entrepreneurs are better characterized more by their problem solving, new opportunity seeking behaviour that draws on their creativity and innovation.

5. Investment intensive:

starting a business requires a sizeable investment of funds in accommodation, plant and machinery, inventory etc.in accounting, investment requirements are estimated as the sum of fixed assets and net current assets. Indeed, investments are necessary for technological up-gradation, modernization and expansion full stock however, size of investment usually varies with the scale of business. That is why in India micro, small medium and large enterprises are defined with respect to the size of investment-more specifically investment in plant and machinery for manufacturing enterprises and investment in equipment for service enterprises. Many people believe that a lack of investable funds or capital is a strong barrier to start a business.

6. Gestation and uncertainties: 

investment takes time to fructify.and it is uncertain whether it will held the returns as expected. For example it will take time to construct a ready and a hotel before it is opened for occupancy. And it is uncertain if all the rooms would be occupied all the time. In fact it is also uncertain if the occupy ratio room nights occupied / room night  capacity would be adequate.in economics and finance, 1 distinguish between risk and uncertainty. Risk can be calculated in advance and certainty cannot.

7. Systematic, organised coma efficiency oriented activity:

 business is not a random,stray,unorganised and occupational activity. It is a consciously created a system of production.Thus, firm infrastructureneeds to be in place of supply chain of materials needs to be developed these materials need to be processed or transformed products need to be marketed and sold payments need to be collected, etc. All this task have to be divided into specialised functions, means of coordination meet be devised so that the business is able to deliver the promised products and services on day- to-day bases efficiently-on time, of consistent quality and exceeding performance expectations. In fact, the phrase businesslike of a business person means carrying out tasks efficiently without wasting time or being distracted by personal or other concerns; systematic and practical.

business is a systematic in the literal sense of the term system-and integrated, unified whole comprising of interrelated, interdependent and interacting part just as an automobile system. Viewed thus,For the business to perform well it needs to be ensured that all the parts perform their respective functions well and in sync with each other-be it production sales marketing and the light. Imagine if the production function is not in sync with marketing and hence unable to fulfill the orders generated by it? Moreover, whilsteach function performs its task it is important that one does not lost sight of all overall objective of the farm. Unlike an automobile however business is an open system as it interacts with the environment. For example business has to interact with the customers to get the vehicle feedback product modification and win their  continuing patronage.

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