BUSINESS: Definition, Types, Benefits, Objectives and Functions of Business

In his life, humans are always faced with efforts to meet both physical needs (clothing, food, shelter, education, health) and needs non-physical (safe, happy, peaceful, peaceful, valued) so that directly or indirectly, every time in life will be involved with activities business.

Therefore Yuksinau.id try to fully discuss the business material which includes the definition, types of business, benefits, objectives, main functions of the business. Which you can use as a reference source for making papers about business.

Human and Business Needs

As a matter of fact, the current pattern is a very long historical process. In primitive times people had to fulfill their own needs and not depend on others.

They have to meet the needs of food, drink, clothing, housing, and others on their own.

Farming, hunting, that's what they do. They always move from place to place in search of fertile land and are faced with dangers that can threaten their survival.

The fulfillment of their needs depends on their own efforts without making exchanges, so that economic life is still in the form of closed household.

Over time, the pattern of life as above is considered less practical, so they start leave a sedentary way of life and start living by settling in a the place.

When they have started a sedentary life, they feel there are advantages and disadvantages of goods certain, from here they exchange goods for goods or services with family services another. So there is a thing called Barter.

The more advanced the civilization of society, the exchange of goods is no longer carried out by barter and has used a means of payment that can be used by everyone in the form of money.

Finally they have the opinion that it is more profitable if there is a division of labor according to their needs.

For example, in a family limiting itself to only producing a few kinds of goods so that happens Specialization (horizontal spread).

Exchange can also be done by making various kinds of products that come from one kind of basic material or so-called Differentiation (vertical spread)

In addition to the dissemination process, there is also a unification process in which each activity is a unit.

Concentration carried out horizontally is called Parallelization ie the company does not make one kind of product but a variety of products.

While the vertical union is called Integration namely the level of a series of work on an item that was previously done by several companies so that it is done by only one company.

Business Definition

By Terminological Business is an activity or undertaking. Business in a broad sense is a general term that describes all activities and institutions that produce goods and services in everyday life.

Business can be seen as a comprehensive system that combines smaller sub-systems called industry.

In the sense that each industry is formed of many companies consisting of various sizes of companies with variety of products produced, including marketing activities, resources, financial arrangements, and systems management.

Business is the exchange of goods, services, or money that is mutually beneficial or provides benefits (Skiner: 1992)

Definition of business according to experts

According to Boone and Kurtz (2002)

Business is all activities that aim to make profit and companies that produce goods and services needed by a system economy.

Some businesses produce goods such as cars, computer chips, cereal for breakfast. Others produce services such as insurance, hotels, salons, lodging, music concerts.

According to Huat, T Chwee, et. al (1990)

Business is then simply a system that produces goods and service to satisfy the needs of our society (Business is a system that produces goods and services to satisfy people's needs).

Type of Business

The more human needs and wants, the more types of businesses. The following are various types of businesses and examples:

1. Business by type of activity

Business can be classified into several types, namely:

a. Extractive Business

Business activities engaged in mining by digging for mining materials contained in the bowels of the earth.

For example: coal, gold, iron, diamond, aluminum, copper, cement, oil and gas business.

b. Agricultural Business

Business activities engaged in agriculture, animal husbandry, plantations, fisheries and forestry.

c. Industrial Business

Business activities engaged in industry manufacturingFor example, the aircraft industry, cigarettes, garments, textiles, textiles, furniture, paper, and so on.

d. Service Business

Business activities engaged in services that produce intangible products such as insurance services, education, tourism, health, banking, beauty, and so on.

2. Types of business by usability

a. Use of form (utility form)

A business that tries to change an object into another object with a different form so that it can be more useful for humans. For example, the business of furniture, tiles, bread, garment.'

b. Use of place (place utility)

Businesses that move things from one place to another that are more useful, are engaged in transportation, be it human transportation, goods transportation, land, sea, and air.

c. Use of time (time utility)

A business that runs a storage business with the aim of keeping goods from one time when they are lacking useful, then it is stored first, then at another time it will be issued when the item is more helpful. For example: Bulog, warehousing at ports.

d. Ownership use (possession utily)

A business that runs its business to create / fulfill the use of ownership of an item / service. For example: shops, trade.

Main Functions of Business

There are 5 business functions involved in the operation of a business, namely management, marketing, finance, accounting, and information systems If you want to be successful in business, then these five functions must be carried out with good.

1. Management is the way in which employees and other resources (such as machines) are used by the company.
2. Marketing is the way in which products (services) are developed, priced, distributed, and promoted to customers.
3. Finance is the way in which a company obtains and uses funds to run its business.
4. Accounting is a summary and analysis of a company's financial condition and is used to make a variety of information systems decisions including: society, information technology, procedures for providing appropriate information to company employees so that they can make decisions business.
5. Information Systems, companies use information systems to constantly update and analyze information systems about their operations. The resulting information can be used by company managers to make business decisions.

Business Benefits

Some of the benefits of doing business, including:

1. Free to Set Time

Since we own the business, our own working hours will automatically set it. Usually this is one of the main considerations for someone in starting a business, because of the freedom of time.

Working hours become more flexible, especially if you prefer to relax. As your business grows, you can also start recruiting employees to help your business.

2. Be the Boss

As Bob Sadino said "no matter how small the business you have, you are the boss“. By doing business, you will become a leader and decision maker in the business you are doing. The size of your business depends on your ability to be a leader.

3. Get Recognition/Award

If the business has been successful and continues to grow and develop while at the same time providing a good impact on the community, then the community will give good recognition positive for you and the business you hold.

4. Pay yourself

The amount of income, we ourselves determine according to the efforts that have been made. It's not like working in an office where you may always get the same nominal every month.

5. A better future

The more persistent and enthusiastic in running a business, providing a great opportunity to have a better or brighter future.

Business Purpose

Everything has a purpose, so does business. The main business goal is to make a profit or profit.

But actually not only profit pursued by a company, among the objectives of the company are:

1. Profit or Profit
2. Procurement of goods/services
3. Welfare of the owners of factors of production and society
4. Full employment
5. The existence of the company in the long term
6. Progress or growth
7. Prestige and achievements

Full employment is a condition where all factors of production have been used efficiently and the state of the economy towards prosperity is characterized by an unemployment rate of only 4%

So it can be seen that the company is not only aiming for profit, but also has other goals.

While the goals to be achieved by business people those include:

1. Want to meet various needs
2. To prosper the family
3. Want his name to be known by many people
4. Because I want to be the successor of the family business
5. Want to try new things
6. Want to take advantage of free time
7. I want to have my own business and not work for other people.
8. Want sympathy.

That's business material which includes definitions, types of business, business functions, benefits, business objectives that can be used as references in making papers. If you still have questions about the business, please ask.

Reference:

Book Introductory Business creation Dr. H. Mochamad Edris, MM. & Dra. Hj. Panca Winahayuningsih, MM.

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