Importance of Business Studies:
The importance of business studies is on its peak now a day. In early times, the goods were produced for one’s own self or for the use of family members at the most. As time passed on, the business was conducted by means of barter system in which goods of one kind were exchanged for other goods or equal value.
When coins came into use business expanded both in rural and urban areas with the increase of transport facilities. The import and export to goods developed between the nations.
The industrial revolution of the 18th century increased the scale of production business has expended the use of machine s has increased. Business is being computerized at a very fast speed now.
Business is the most important activity of mankind. The progress of any country depends upon the development of business of that country. Therefore, counties like USA, England, Germany, Japan, Korea etc. are developed through business.
The importance of business can be judged by the following;
Self-actualization of Human Wants:
In the modern time human wants are unlimited. Business fulfills such human wants through the production of goods and services.
Mass Production of Goods:
The 2nd importance of business is making the best possible use of the scarce resources for producing goods on a larger scale. the use of automatic machines, new processing methods etc have not only lowered the cost of production of goods but has heled the producers in producing goods in desired quality and quantity.
Creation of Utility:
Business creates various types of utilities in goods so that consumers may use them according to their preferences and needs. The utility may be form utility, place utility, time utility, etc.
Utilization of Natural Resources:
Every country has certain natural resources. The business makes it possible to utilize natural resources to their maximum extent. As for example mineral resources are extracted by extractive industries. Afterwards they are used by other industries to make different types of useful articles.
Expansion of Markets:
Another importance of business is expansion of markets. In the modern world, goods are produced by business according to the needs and expectations of the customers. The customers want goods and services of requisite quality at reasonable price and at right time country by developing and designing the products according to the tastes and purchasing power of the customer. Markets, therefore have expanded consumption of goods due to increase in number of customers all over the world.
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The field of business is also important from the viewpoint of employment. Today a lot of people are employed by the development of business. So business contributes a lot in solving the unemployment problem of the country.
Quality goods Supply:
The supply of quality goods and services to the consumers at responsibility of the business. The business should aim at consumer satisfaction. A business cannot flourish in the long run if it ignores consumers.
The business of today is all the time busy in making improvements by introducing new products for example, credit cards digital diary, mobile phone etc. it is also introducing new methods of distribution for example e commerce, teleshopping. it is also using new materials for production of goods such as transistor instead of vacuum tubes. CNG instead of petrol. all these innovations in production bring improvements in the quality of products and reduce costs.
Another importance of business is insurance. The various types of nosiness risk which may happen due to fire, theft flood, earthquake strikes etc can be insured and the loss if any arising out of the risk can be recovered. Insurance has given stability to the business now which in the earlier days was not available
Earning Foreign Currency:
Business is the major sources of earning foreign currency. By the development of business (industry, trade) finished goods can be exported to foreign countries and earn maximum foreign currency. Such foreign currency again can be used in importing necessary goods and services for the development of the country.
Business play and important role in economic development. The economic development of country depends upon the development of business. Hence utilizing the raw materials available in the country if we can develop industrialization, country could be developed. The economic prosperity of a country is judged by the number of large scale business existing in it.
Business can play an important role in making the country self-sufficient. It should produce all those goods, which are imported from outside. A self-reliant country has more prestige in international community.
Sources of revenue:
Another importance of business is generating revenue. The development of business also increases the government revenue. Industrial and business firms pay excise duty, income tax, sales tax, etc. to the government. As the number of business enterprises increase government revenue also increases.
International Relationship: By the development of industry and trade we can export goods with other countries. The people of different countries come in contact with each other. It creates cooperation, understanding and relations among various nations.
As business is expanding, it is helping in urbanization. The growth of cities has changed the social life of man. His vision has been broadened. Education facilities have increased.