Page 66 - Office Practice and Accounting -9

6 Business

Introduction

Literal meaning of Business is to be busy in some work or activities. However, every
state of being busy is not called business. In fact, the term ‘Business’ includes all the
human activities directed towards producing or acquiring wealth. It can be defined
as human activity involving production, distribution and exchange of goods and
services with the objective of profit earning. It is a regular process of exchanging
goods and services, which involves risk and uncertainty.
Business, like every other human activity, requires two essentials: a process and
an organization. Process means the methods in which the said activity is pursued.
Organization means the mechanism or machinery which aids the pursuance of said
activity.

According to F. C. Hooper, “The whole complex field of commerce and
industry, the basic industries, processing and manufacturing industries and
the network of ancillary services: distribution, banking, insurance, transport
and so on, which serve and interpenetrate the world of business as a whole
are business.”

According to L.H., Haney "Business may be defined as a human activity
directed towards producing or acquiring wealth through buying and selling
of goods."

According to Peterson and Plowman, “Business may be defined as an activity
in which different persons exchange something of value whether goods or
service for mutual gain or benefits.”

From the definitions above, we can say that business is a form of activity pursued
primarily with the object of earning profit for the benefit of those on whose behalf the
activity is conducted.

62 Office Practice and Accounting 9