Human Activities:
Work is an essential part of human life. Work helps to satisfy human wants.
Types of Human Activities
1. Economic Activities
2. Non-Economic Activities
Economic Activities:
Economic activities refer to those activities, which are undertaken to earn a living. For example, workers working in a factory, shopkeepers selling goods in his shop, doctors attending to patients in his clinic, etc.
Non-Economic Activities:
Non-Economic Activities refer to those activities, which are undertaken to satisfy social, psychological, and emotional needs. For example, a housewife cooking food for her family, a teacher teaching his own son, attending a social gathering, etc.
Economic Activities v/s Non-Economic Activities
|
Basis |
Economic Activities |
Non-Economic Activities |
|
Objective |
The prime objective is to earn money. |
The main objective is to get some sort
of satisfaction. |
|
Money Measurement |
They are measured in money or money’s
worth. |
They are not measured in money. |
|
Expectation |
The expectation for performing economic activities is to earn income or profit. |
The expectation for performing
non-economic activities is to get mental satisfaction |
|
Duration |
They are performed regularly and for the major period of one’s life. In old age, one may stop working. |
They are performed during leisure or spare time, which is very limited. |
|
End Result |
The end result of these activities is the production of goods and services. |
The end result of these activities is the mental satisfaction of the person performing them. |
|
Example |
Teacher teaching at school, the doctor attending his patients, or worker working in a factory. |
Teacher teaching his own son or doctor treating earthquake victims for free. |
Type of Economic Activities
1. Bussiness
2. Profession
3. Employment
Concept of Bussiness
Business refers to those economic activities, which are connected with the production, purchase, and sale of goods or supply of services with the main object of earning profit. People engaged in business earn income in the form of profit. For Example, Farming, Manufacturing, Fishing, etc.
Characteristics of Business
1. An Economic Activity:
Business is an economic activity as it is undertaken with the aim of earning money or livelihood and not because of love, affection, or any other psychological reason.
2. Production or procurement of Goods and Services:
Business exists to satisfy the wants of the consumer. So, every business either produces the goods or services or procures them from others in order to sell them to consumers or users.
* Goods may consist of consumer goods or capital goods.
* Services may include facilities in the form of transportation, banking, electricity, etc.
3. Uncertainty of Return:
Every business aims to earn profits. However, there exists uncertainty of return that the businessman may earn on his investments. It is not certain as to what amount of profit will be earned. There is always a possibility of losses, in spite of the best efforts put into the business.
Concept of Profession
Profession including those activities, which require special knowledge and skill to be applied by individuals in their occupation to earn fees.
Characteristics of Profession
1. Well-defined body of knowledge:
Every profession has a systematized body of knowledge, which can be learned through instructions.
2. Restricted Entry:
Every profession restricts entry on the basis of examination or education. An individual can enter a profession, like a Doctor or Lawyer, only after acquiring knowledge and skills through formal education and training.
3.Service Motive:
The basic motive of a profession is to service clients with dedication. For example, the task of the lawyer is to ensure that his clients get justice.
Concept of Employment
Employment refers to the occupation in which people work for others and get remunerated in return, in the form of salary or wages.
Characteristics of Employment
1. Reward or Return:
The employee is paid a salary or wages for his services, at regular time intervals.
2. Nature of Work:
The employee is required to perform work as prescribed by the employer.
3. Capital Investment:
Employment does not require any investment and involves negligible risk.
4. Qualification:
Underemployment, the employee is required to possess qualification and training as prescribed by the employer.
Business Function at Enterprise Level
Business includes a wide variety of functions, which are performed by different kinds of organizations. The four major functions performed by business enterprises are:
1. Financing:
It is concerned with mobilizing and utilizing funds for running a business enterprise.
2.Production:
It involves the conversion of raw materials into finished products or the generation of services.
3.Marketing:
It refers to all those activities which facilitate the exchange of goods and services from producers to the users or consumers, at a place they want, at a time they require, and at a price, they are prepared to pay.
4. Human Resource Management:
It aims at ensuring the availability of working people who have the necessary skills to perform various tasks in enterprises.
Classification of Business Activities
Business activities are broadly classified into two categories:
1. Industry:
It is concerned with the production or processing of goods and materials.
2. Commerce:
It includes all those activities which are necessary for facilitating the exchange of goods and services.
Industry:
The industry refers to economic activities which are connected to the conversion of resources into useful goods.
For Example, the Cotton textile industry refers to all manufacturing units producing textile goods from cotton.
0 Comments