Understanding What Is a Business, Functions and Benefits of a Business Itself

IN economics, business is an activity of selling goods or services and services to consumers or to other businesses for the purpose of profit or gain.


According to the history and beginnings, business word itself comes from the word “busy” in English, that the word “busy” in the context of an individual, association or society.

Simple business sense is doing busyness or doing activities with the purpose of obtaining profit (profit).


In the world economy, the business itself has characteristics that are divided into 5 parts, are:

  1. For profit or gain
  2. Determine the appropriate price
  3. It would be possible to meet the loss
  4. Directly related to the goods, services or services that meet the needs of human nature; and
  5. Business is lembata, institution, or social and economic organization


Understanding Business Peterson & Plowman (Mr. Business)

Business is a series of activities related to the purchase or sale of goods and services conducted by repeated endlessly (a series of activities related to the sale or purchase of goods and services that are consistently repeated).

According to them, the purchase and sale of goods and services conducted only once is not an understanding of the actual business.

Business benefits

If talk about the business benefits, to be sure that the benefits are real business benefits. Moreover, there are some other things that can be incorporated into business benefits.

  • Benefit or profit
  • The chance to be the boss, either small or big businesses that are run
  • Being able to pay themselves
  • Unbound and can arrange any way you want private time

Moreover, the future could be said to be happy because of your own that govern how your life in the future. The harder, more likely to achieve prosperity.

Business Objectives

Overall, it was very much business objectives. Business establishment is not merely profit-oriented, but when viewed as a whole, the business objectives are:

  • Profit
  • Welfare owners of production factors and consumers
  • Procurement of goods and services
  • The existence of the company in the long term
  • Growth; and
  • Achievement (Prestige)

Although the goal remains leads to income, there are many other goals that can be incorporated into business objectives, which are:

  • prosperous family
  • Make ends meet
  • Want to be known or famous among businessmen
  • Being the successor to a business inherited from her family
  • Trying new things
  • Have their own business, in other words not willing to work with others; and
  • There are still many other reasons


Business functions

Speaking about his own business functions, Steinhoff is known as one of the business experts said that there are three main functions of the business, namely:

  • Looking for raw materials (acquiring raw material)
  • Convert raw materials into finished goods (manufacturing raw materials into product); and
  • Distributing goods which are already finished goods to consumers (distributing product to consumers)

Hopefully the writing of understanding what it is the business, benefits and business objectives are reviewed briefly here useful. Good luck!

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Isabella Beatrice

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