Concept of Business Lecture Notes

Introduction

• Instructor: Priyanka Dudhani
• Subject: Class 11 Business Studies
• Previous Topic: History of Trade and Commerce
• Current Topic: Concept of Business
• Note-taking encouraged.

Overview of Human Activities

• All human beings perform activities to satisfy needs.
• Activities can be economic or non-economic.

Categories of Human Activities

1. Economic Activities:

   • Performed for earning a livelihood.
   • Examples: Teaching for salary, working as a doctor or engineer.

2. Non-Economic Activities:

   • Done out of love, sympathy, or personal satisfaction.
   • Examples: Teaching a sibling, cooking for family.

Economic vs Non-Economic Activities

• Economic Activities:

  • Aim to earn income.
  • Examples:
    • A doctor providing services in a clinic.
    • A shopkeeper selling goods.

• Non-Economic Activities:

  • Aim for psychological satisfaction.
  • Examples:
    • Helping an old person cross the street.
    • Cooking for family without charge.

Types of Economic Activities

• Economic activities can be further divided into three categories:

  1. Business:

     • Involves production, purchase, sale, and distribution of goods/services.
     • Objective: Earning profit.
     • Example: Opening a restaurant, running a kirana shop.

  2. Profession:

     • Activities requiring special knowledge/skills.
     • Examples include doctors, architects, lawyers.
     • Requires formal education and qualifications.

  3. Employment:

     • Working for another person or organization for a salary.
     • Examples: Bank manager, teacher.

Distinction Between Business, Profession, and Employment

1. Entry Requirements:

   • Business: Open to anyone.
   • Profession: Requires specific qualifications.
   • Employment: Requires skills and qualifications based on the job.

2. Investment:

   • Business: Requires capital investment.
   • Profession: Minimum investment for setup.
   • Employment: No investment needed for jobs.

3. Risk:

   • Business: High risk.
   • Profession: Moderate risk.
   • Employment: No personal financial risk.

4. Transfer of Interest:

   • Business: Transferable with formalities.
   • Profession: Not transferable (requires degree).
   • Employment: Not transferable (service contracts).

5. Objectives:

   • Business: Profit.
   • Profession: Service.
   • Employment: Salary/wages.

6. Code of Conduct:

   • Business: Self-regulated.
   • Profession: Governed by professional bodies.
   • Employment: Governed by employer's terms.

Examples and Case Study

• Case Study:
  • Amar: Doctor (Profession)
  • Akbar: Bakery owner (Business)
  • Anthony: IAS officer (Employment)
• Differences based on transfer of interest, reward, and code of conduct discussed.

Conclusion

• Non-economic activities provide psychological satisfaction, such as charity and family-oriented activities.
• Economic activities aim to generate profit and wealth.

Additional Resources

• Magnet Brains offers free resources and courses for students.
• Check Website and Description Box for notes and ebooks.