Explain the function of business. |
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| Ans : The function of business are explained below:
i) Production:- Converting raw materials into finished goods to satisfy human wants by creating utility is known as production. Under this function raw materials and semi- finished products are processed and assembled to create utility.
ii) Distribution:- Trading organizations are involved in the distribution of goods and services from manufactures to final consumers. It creates place utility. This function is necessary to fulfill the demand of the customer living in the different places. Distribution function involves various activities like buying, selling, advertising, market research and risk bearing.
iii) Advertising:- It is one of the most important functions of business. It is the process of introducing products among the consumer. The advertising can be done through various means of communication like T.V, Radio, Newspaper, Social media etc.
iv) Investment:- Business performs financing function. The availability of factors of production depends upon availability of finance. Under this function required capital is estimated accumulated and properly utilized.
v) Human resources management:- It involves all the activities necessary for man power management. It is the process of acquisition, development, motivation and maintenance of human resources in the organization for the long period. It is designed to maximize both employees and organizational effectiveness.
vi) Organization:- Organizing function is necessary for performing business activity effectively. Money, Man, Material, Machine and method are essential factor for any business. So, organizing function accumulates and co-ordinates all the necessary factor of business and helps to achieve its objective.
vii) Employment opportunities:- The most important function of the business is to provide employment in the country. Every business requires large number of manpower to perform their activity. Business organization needs skilled, semi-skilled and unskilled manpower.
viii) Research and development:- The progress of any field is the result of research and development. It is essential for every business organization to make itself up to date with the changing environment of the market and society. It helps for innovation of new concept, model, size, design, structure and technology.
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