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9. Organization: Business cannot flourish without an organizational structure.
Business should be done in a planned way and to execute the plan, an
organization is quite essential.
Importance of business

Business is a major element for economic development. If business in society or
country is flourished, it is the indication of economic prosperity of that place. Business
has the following importance:

1. Helps in economic development: Business helps for economic development and
growth of economic standard of a country. Domestic and international business
both are important for economic mobilization. The economic development of
the country largely depends on the proper development of business i.e. trade
and commerce.
2. Resources utilization: Business needs and utilizes various types of resources
such as natural, human, physical and financial resources for the production and
distribution of goods and services. Idle resources are utilized in well flourished
business environment. Due to this, economic mobilization takes place,
employment opportunities are created and as a result, economic condition of
the country is raised.
3. Creates employment: Business is the major source of providing employment
opportunities to the public. Unemployment problems can be solved through
the development of trade, commerce and industry. Creation of different types
of jobs are possible if there is proper development of business.
4. Source of government revenue: Business plays a vital role to increase the
government source. The tax and other charges such as excise duty income
tax, sales tax, etc. paid through the business directly or indirectly are the main
sources of government revenue.
5. Source of foreign currency: Well developed business is the major source of
earning foreign currency. Manufacturing industry, tourism industry and other
firms of business export their products and services to the foreign market
and earn foreign currencies. Any country lowers its international financial
dependency through developed business activities.
6. Increases living standard: Business increases earning of a person and his family.
The increased income has chain effect in the economy. It increases purchasing
power and develops his living standard, which makes life full of comfort and
happiness.
7. Fosters good international relations: No country today is self sufficient.
Every country imports the shortage goods and exports the surplus goods. The
development of industry and trade leads to the import and export of goods.
People of different countries come in contact with each other. It creates co-
operation, understanding and cordial relations among various nations. That’s
why trade relation fosters good human relation among countries and their
people.

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