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Ttuc introduction to bussiness

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TTUC
BUSSINES DEPARTMENT
Dr. Stephen O Andai (PhD)
Lecturer notes week 3 -5
Introduction to Business
We live in a business environment. It is an indispensable part of society. It satisfies our wants by
providing variety of goods and services through wide networking of business activities. This
module has been designed to enable the learners to be aware of the world of business, recognize
its importance, objectives, and understand the different types of business activities and new
developments like e-commerce as well as appreciate the responsibilities of business towards
different stakeholders.
NATURE AND SCOPE OF BUSINESS
When we look around us, we observe that most of the people are engaged in various activities.
Teachers teach in the schools, farmers work in the fields, workers work in the factories, drivers
drive vehicles, shopkeepers sell goods, doctors attend patients and so on. In this way, people are
busy during the day and sometimes during the night throughout the year. Now the question arises
as to why we all keep ourselves busy. The answer is to satisfy our wants. By doing so, we either
discharge various obligations or earn money through which we can buy goods and avail services.
In this lesson let us learn more about various types of activities in which we all keep ourselves
busy to satisfy our wants. We shall learn in detail about ‘Business’ as a human activity.
HUMAN ACTIVITIES
Activities which human beings undertake are known as human activities. We can divide these
activities into two categories:
(i) Economic activities and
(ii) (ii) Non-economic activities
Nature and Scope of Business
(i) Economic activities

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Activities, which are performed with an objective to earn money, are known as economic
activities. For example, farmers grow crops to sell them, a factory or office employees work and
get wages or salaries, a business person earns profit through buying and selling of goods or
services, these activities are economic activities.
(ii) Non-economic activities
Activities, which are not performed to earn money but to get some satisfaction, are called non-
economic activities. These activities are performed to discharge social obligation or for physical
fitness or for recreation etc. People visiting places of worship, providing relief to the victims of
flood and earthquake, engaging in sports activities, gardening, listening to radio or watching
television are few examples of non-economic activities.
Difference between Economic and Non-Economic Activities
i. Purpose - earning motive. v/s Social and Psychological motive.
ii. Outcome - Lead to creation of wealth and assets v/s Lead to satisfaction and. happiness.
iii. Expectation - People expect profits money income. v/s People don’t expect profits or money
income.
iv. Consideration - They are guided by rational of scare economic resource v/s They are
motivated by consideration as they involve emotional and sentimental. No economic resources
such as land, labour, consideration is involved.
Difference between Economic and Non-Economic Activities
i. Purpose - Earning motive/s Social and Psychological motive.
ii. Outcome - Lead to creation of wealth and assets. v/s Lead to satisfaction and happiness.
iii. Expectation People expect profits or People don’t expect profits money income. or money
income.
iv. Consideration They are guided by rational v/s They are motivated by consideration as they
involve emotional and sentimental the use of scare economic resources capital etc.. No economic
resources such as land, labour, consideration is involved.

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TTUC BUSSINES DEPARTMENT Dr. Stephen O Andai (PhD) Lecturer notes week 3 -5 Introduction to Business We live in a business environment. It is an indispensable part of society. It satisfies our wants by providing variety of goods and services through wide networking of business activities. This module has been designed to enable the learners to be aware of the world of business, recognize its importance, objectives, and understand the different types of business activities and new developments like e-commerce as well as appreciate the responsibilities of business towards different stakeholders. NATURE AND SCOPE OF BUSINESS When we look around us, we observe that most of the people are engaged in various activities. Teachers teach in the schools, farmers work in the fields, workers work in the factories, drivers drive vehicles, shopkeepers sell goods, doctors attend patients and so on. In this way, people are busy during the day and sometimes during the night throughout the year. Now the question arises as to why we all keep ourselves busy. The answer is to satisfy our wants. By doing so, we either discharge various obligations or earn money through which we can buy goods and avail services. In this lesson let us learn more about various types of activities in which we all keep ourselves busy to satisfy our wants. We shall learn in detail about ‘Business’ as a human activity. HUMAN ACTIVITIES Activities which human beings undertake are known as human activities. We can di ...
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