This is a presentation that I had made on Nature and Purpose of Business from class 12 Hope people find it useful...

1. CHAPTER 1 – NATURE AND
PURPOSE OF BUSINESS
CLASS 11

2. WHAT IS BUSINESS?
• Economic activity that is undertaken to earn profit
• Main Aim of Business - Maximization of Profit
• Purpose
Earn Money → By meeting ppl’s demands – goods and services

3. CONCEPT OF BUSINESS
• The term Business derived from “busy”
• Occupation in which ppl engage in activities related to purchase, production, sale of goods and services
with a view to earn profit
Activities which are done to
earn our Livelihood
Activities that are performed
out of love, sympathy,
sentiments, etc.
Economic
Activities
Economic
Non -
Economic

5. DEFINATION OF BUSINESS
An Economic Activity involving
o Production
o Sale of Goods
Undertaken with the motive of Earning Profit by
Satisfying Human needs

6. • Business considered an economic activity as it is done to earn livelihood/money and not out of love,affection,
sympathy, sentiments, etc.
• Before the product is sold, it has to be manufactured. It could either manufactured by the enterprise itself or it
could be imported/procured from somewhere else and then sold.
• Next step – Launch it in the market, offer it for sale and the offer has to be accepted by the customer. It has to
happen for money, not going to be given for free, if done on charity basis – not business
• A single transaction of a purchase and sale undertaken once in a while does not constitute business. It should
involve dealings of goods and services on a regular basis. One single transaction does not constitute business.
• Main Aim of Business - Maximization of Profit (to earn income). No business can survive without earning
profit

7. Economic Activity
Business considered
an economic activity
as it is done to earn
livelihood/money
and not out of love,
affection, sympathy,
sentiments, etc.
Production and Procurement
of Goods and Services
Before the product
is sold, it has to be
manufactured. It
could either
manufactured by
the enterprise itself
or it could be
imported/procured
from somewhere
else and then sold.
Sale or Exchange of
Goods and Services
Next step – Launch it in the
market, offer it for sale and
the offer has to be accepted
by the customer. There has
to some kind of monetary
return involved i.e., you are
supposed to get money not
going to be given for free,
if done on charity basis –
not business

8. Dealings in goods and
services on a regular basis Profit earning
The death of karta
will not affect the
business as the next
eldest member will
take up the position.
Hence continuity is
not threatened.
Uncertainty of Return
The liability of all
the co parceners
except the karta is
limited.
Their risk is well
defined and precise.
Increased loyalty
and cooperation
Greater sense of loyalty
towards one another.
Pride in the growth of
business links to the
achievements of the
family. Thus helps to
secure better
cooperation from all the
members.
A single transaction
of a purchase and
sale undertaken once
in a while does not
constitute business. It
should involve
dealings of goods and
services on a regular
basis. One single
transaction does not
constitute business.

9. Dealings in goods and
services on a regular basis
Business considered
an economic activity
as it is done to earn
livelihood/money
and not out of love,
affection, sympathy,
sentiments, etc.
Profit earning
Before the product
is sold, it has to be
manufactured. It
could either
manufactured by
the enterprise itself
or it could be
imported/procured
from somewhere
else and then sold.
Uncertainty of Return
Next step – Launch it in the
market, offer it for sale and
the offer has to be accepted
by the customer. There has
to some kind of monetary
return involved i.e., you are
supposed to get money not
going to be given for free,
if done on charity basis –
not business