WHAT IS BUSSINESS?

Bussines is a word that is commonly used in many different languages.But exactly what does it mean? The concept and activities of business have increased in modern times. Traditionally, business simply meant exchange or trade for things people wanted or needed. Today is has a more technical definition, and sale of goods and services for a profit. To examine this definition, we will look at its various parts.
First, production is the creation of services or the changing of materials into products. One example is the conversion of iron ore into metal car parts. Next, these product need to be moved from the factory to the marketplace. this is known as distribution. A car might be moved from a factory in Detroit to a car dealership in Miami.
Third is the sale of goods and services. Sale is the exchange of a product or service for money. Goods are products that people either need or want; for example, cars can be classfied as goods. Services, on the other hand, are activities that a person or group performsfor another person or organization. For instance, an auto mechanic performs a service when he repairs a car. A doctor also perform a service by taking care of people when they are sick.
Business, then, is a combination of all these activities: production, distribution, and sale. However, there is one other important factor. This factor is the creation of profit of economic surplus. A major goal in the functioning of an American business company is making a profit. Profit is the money that remains after all the expenses are paid. Creating an economic surplus or profit is, therefore, a primary goal of business activity.