Business Studies: Introduction to Business

Importance of Business Studies

• Practical subject with many real-life examples
• Useful in both exams and real-life business scenarios
• Recommended: Take notes while learning

Lecture Outline

1. Introduction to Business
2. History of Business
3. Concepts of Trade and Commerce

Concept of Business

• Definition: Engaging in activities involving goods and services to earn profit
• Origin: Derived from the word 'busy'
• BUSINESS: Being Busy in an occupation to earn profit
• Regular Activity: Continuously engaging in purchasing, producing, and selling goods/services
• Profit: Earning money is the primary motive

Types of Human Activities

1. Economic Activities: For earning livelihood (e.g., a worker, doctor, teacher)
2. Non-Economic Activities: For psychological satisfaction (e.g., charity, household chores)

Key Differences Between Economic and Non-Economic Activities

• Purpose: Economic (earn profit) vs. Non-Economic (psychological satisfaction)
• Result: Production & Distribution of goods/services vs. Mental satisfaction

Business Entity Concept

• Business is considered separate from the owner
• Business firms perform organized economic activities

Types of Business Activities

1. Industry: Divided into Primary, Secondary, and Tertiary sectors
2. Commerce: Trade and auxiliaries to trade

Industry Breakdown

1. Primary Industry: Involves natural resources (e.g., agriculture, mining)

• Extractive: Extraction of natural resources
• Genetic: Breeding of animals and plants

2. Secondary Industry: Manufacturing and construction

• Processing: Multiple processes (e.g., paper, textiles)
• Analytical: Refineries, separating products
• Synthetic: Combining materials (e.g., cement, paint)
• Assembling: Combining parts (e.g., electronics, vehicles)

3. Tertiary Industry: Provides services (e.g., transportation, banking)

Commerce Breakdown

1. Trade

   • Internal Trade: Within the country
     • Wholesale: Bulk buying and selling
     • Retail: Selling directly to consumers
   • External Trade: Between countries
     • Import: Buying from other countries
     • Export: Selling to other countries
     • Entrepot: Importing for the purpose of exporting to other countries

2. Auxiliaries to Trade

   • Banking: Financial services
   • Insurance: Risk management
   • Transportation: Moving goods from place to place
   • Warehousing: Storage of goods
   • Advertising: Promoting products

Study Tips

• Focus on understanding concepts rather than rote learning
• Make comprehensive notes and review them regularly
• Use examples to relate concepts to real-world scenarios

Next Steps

• Read and review the chart discussed in today's class
• Prepare for detailed study of the discussed topics in the next class

Thank you for joining! See you in the next session. 🎉