Lecture Notes: Business, Trade, and Commerce

Introduction

• Series: 100 Days Commerce Pro Series
• Coverage: Entire syllabus of Accounts, Business Studies, and Economics in 100 days.
• Current Week: Covered Accountancy and Economics.
• Today: Starting Business Studies with Chapter 1 - Business, Trade, and Commerce.

Overview of Chapter 1: Business, Trade, and Commerce

• Topics Covered: Business, Trade, and Commerce.
• Objective: Understand practical aspects of business operations.

Economic and Non-Economic Activities

• Economic Activities: Activities done to earn money and sustain livelihood.
  • Examples: Shopkeeper selling fruits, doctor attending patients.
• Non-Economic Activities: Activities done out of love, affection, care, etc., not aimed at earning money.
  • Examples: Housewife caring for household, charity work.

Concept of Business

• Definition: Any activity or enterprise aiming to earn profit by providing goods and services.
• Characteristics of Business: Aspects of Business Understanding:
  1. Economic Activity: Main motive is to earn profit.

2. Production or Procurement of Goods and Services: Essential for earning money.
3. Sale or Exchange of Goods and Services: Business involves selling or exchanging goods/services. Originally through barter system, now through monetary transactions.
4. Dealing on Regular Basis: Regular engagement in business activities is required for it to be considered a business.
5. Profit Earning: Primary motive of business activities.
6. Uncertainty of Return: Business involves risk and uncertainty in returns.
7. Risk: Inherent in every business due to uncertainties.

Types of Economic Activities

• Business: Regular engagement in selling goods/services for profit.
• Profession: Specialized knowledge/skills required, can be in business or employment.
• Employment: Working for others in return for salary/wages.

Differences Between Business, Profession, and Employment

Business

• Start: By entrepreneur’s decision, with legal formalities.
• Nature of Work: Production/sale of goods and services.
• Qualification: No formal qualification required.
• Reward: Profit.
• Capital Investment: Essential.
• Risk: High.
• Transfer of Interest: Possible (e.g., selling a business).
• Code of Conduct: None specified.

Profession

• Start: Requires membership of professional body and relevant degrees.
• Nature of Work: Providing specialized services.
• Qualification: Specialized education and training.
• Reward: Fees.
• Capital Investment: Limited, based on profession.
• Risk: Moderate, due to demand for professional services.
• Transfer of Interest: Not possible (cannot transfer degree or professional status).
• Code of Conduct: Governed by professional body rules.

Employment

• Start: By appointment letter/service agreement.
• Nature of Work: Depends on the job (sales, services, etc.).
• Qualification: Varies with job.
• Reward: Salary or wages.
• Capital Investment: None required.
• Risk: Low; fixed income.
• Transfer of Interest: Not applicable.
• Code of Conduct: Governed by employer’s rules.

Conclusion

• Discussion Points: Types and characteristics of economic activities, difference between business, profession, and employment.
• Next Class: Discuss commerce and industry, and conclude the chapter.
• Engagement: Students to comment on preferred career choice (business, profession, or employment).