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Importance
Of Business In The Present Day World
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The importance of business is that
it provides products or services to customers. These
products or services in the present day world are provided
by entrepreneurswho organize, manage and assume the
risk of starting businesses mainly for earning profit.
Business makes the best possible use of scarce resources
such as men, machines and materials for the production
of goods. The importance of business can be judged from
the following activities undertaken by the business. |
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The
raw material producing industries such as agriculture,
mining, forestry, fishing, etc., provide raw materials
for the manufacturers of consumer and producer goods.
For instance, agriculture provides food such as grains!
vegetables. Mines provide metals which are used in factories
and firms. Coal, another product of n,ne is a very useful
source of power Forestry, provides us timber ‘Ahich
is needed r the construction of building, furnitures,
paper, etc. |
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Manufacturing uses the raw materials
of agriculture, mining, forestry, fishing. etc., and
makes a variety of consumer and capita! goods which
are needed by the consumers. Without manufacturing,
the business will stand idle. There would be no automobiles,
no roads! no airplanes, no eleQtr’c power, etc.
To sum up, the Industrial occupations which are concerned
with the growing, extracting and manufacturing of material
goods are cornerstone of business. |
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2. Distribution aspect
of business |
The
thstribution aspect of business is very complex. The
goods which are produced should reach the consumers
at the right place, right time and at right price also.
Business due to seif-intefest of earning profits, provides
goods to the peop’e both within and outside the
country. The transport industries facilitate the movement
of goods from one place to another where they are wanted.
Finance, banking and insurance greaUy contribute in
the financing of business. Without banks, investment
and insurance companies, commerce and industry would
not have deveLoped on an extensive scale. |
| 3.
Business supplies services |
Services
occupy an important place in business life. Though the
service organizations do not contribute directly in
the production of goods but they facilitate in the production
and distribution of goods to the customer& The major
services which arc growing in importance with each passing
year are banking and finance, insurance, medical and
health] Legal, engineering and other professionals,
hotS, domestic servants, education, automobile repairs.
etc., etc, the services which perform simple or difficult
tasks for earning money are regarded an important part
of business. |
| 4.
Business has helped in raising standard of living |
Business
has helped people to earn a living either as owners
of business or as employees. The mass production of
standard goods! specialization, automation have increased
the incomes of those who are directly or indirectly
engaged in business. Higher incomes have led to the
increase in the standard of living of the people. Business
also pays a large share of taxes to a government |
| 5.
Creation of customers |
The
business of today is creating markets for its customers
alL over the world by introducing new products, new
methods of distribution such as e-corrmerce, tele shopping
etc. |
| Criticism
of business. |
There
isno doubt that modern business has raised material
standard of living of the people but it has also created
discontentment in the economic and social system. The
main criticisms directed towards business are as under: |
| 1.
Business of today has become too much profit oriented.
The employees are usually exploited by the owners |
2.
Business is guilty bf polluting air and water which
directly affects the health of the people. |
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Human values and worker comforts are ignored by business. |
4.
Business, due to self-interest, often ignores the welfare
of the consumers and supplIes adUfterated goods. |
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The communication media such as television, radio magazines,
newspapers. etc.. attempt to sell their goods or services
by appealing to ba hurnan emotions, People due to the
influence of communication media are losing sight pf spiritual
values. They are becoming too much materialistic minded
and have lost peace of mind |
| Conclus(on.
We do agree that the modern busness has increased the
- comforts of life by supp the desired quality of products
but it has obligations towards nation also. Henry Ford
is right in saying that, “Business is not mere
money chasing but it should also aim in serving the
community |
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