Structure of business developed by jovin thomas panamthanam

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useful for XI commerce students

Text of Structure of business developed by jovin thomas panamthanam

  • 1. STRUCTURE OF BUSINESS

2. STRUCTURE - MEANING The way in which several part of a system or unit put together. BUSINESS STRUCTURE The way in which a particular business is constituted 3. CLASSIFICATION OF BUSINESS ON THE BASIS OF SIZE Small scale units Operate on small scale Production or trade is small Limited number of workers Require less capital Small number of customers Large scale units Operate on large scale Production or trade is large large number of workers Require huge capital large number of customers 4. CLASSIFICATION OF BUSINESS ON THE BASIS OF FUNCTION INDUSTRIAL ENTERPRISES Engaged in production or processing of goods. Goods may be consumer goods or capital goods COMMERCIAL ENTERPRISES Facilitates exchange of goods through proper distribution network and storage facilities. 5. CLASSIFICATION OF BUSINESS ON THE BASIS OF OWNERSHIP PUBLIC SECTOR UNITS Owned and managed by central govt. or state govt. or govt. agencies. PRIVATE SECTOR UNITS Owned and managed by private parties. Joint sector units. Partly owned by Govt. and partly by private businessmen 6. Public Sector Units Departmental undertakings Public corporations Govt. Companies Private Sector Units Sole Proprietorship Partnership Joint Hindu Family Business Company Co-operative societies 7. INDUSTRY It is an economic activity which involves production or processing of goods for consumption or for further production. Group of firms or units producing similar goods. Examples - Textile Industry - Cement Industry - Banking Industry - Insurance Industry 8. PRIMARY INDUSTRIES 1.EXTRACTIVE INDUSTRY Extraction of natural resources or extraction from nature. Eg. Mining , Fishing,oil exploration 2.GENETIC INDUSTRY Multiplication and reproduction of plants and animals. Reproduction for better species. Development of high yielding varieties. 9. 1.EXTRACTIVE INDUSTRY 10. 1.EXTRACTIVE INDUSTRY 11. GENETIC INDUSTRY 12. SECONDARY INDUSTRIES 1.MANUFACTURING INDUSTRY Engaged in converting raw materials into finished goods. Eg. Rubber in to tyre Timber in to furniture 2.CONSTRUCTION INDUSTRY Engaged in construction of dams, bridges, roads, buildings etc It is labour intensive Its products are movable It uses the products of other industries as their raw materials. 13. TERTIARY INDUSTRIES CONCERNED WITH PROVIDING SERVICES TO THE PRIMARY INDUSTRIES AND SECONDARY INDUSTRIES. Eg- Transport Communication Banking Insurance 14. COMMERCE It is defined as those activities involving the removal of hindrances of in the process of exchange of goods. COMMERCE =TRADE + AIDS TO TRADE 15. COMMERCE =TRADE + AIDS TO TRADE TRADE AIDS TO TRADE Activities which assist trade. Eg : Banking Insurance Warehousing transportation -Sale, exchange or transfer of goods. It helps in making available goods produced to the ultimate consumers. 16. TYPES OF TRADE CLASSIFICATION ON THE BASIS OF VOLUME OF GOODS TRADED WHOLESALE TRADE Here the trader buys goods in bulk quantity and sells them in smaller quantities to the retailers. Here the trader is called wholesaler. RETAIL TRADE Here the trader buys smaller quantity of goods from the wholesalers or producers and sells them to the ultimate consumers. Here the trader is called retailer. 17. TYPES OF TRADE CLASSIFICATION ON THE BASIS OF geographical boundaries INTERNAL TRADE Here the TRADE TAKES PLACE WITH IN THE BOUNDARIES OF A NATION Also called home trade or domestic trade EXTERNAL TRADE Here the TRDE TAKES PLACE BEYOND THE BOUNDARIES OF A NATION ALSO CALLED FOREIGN TRADE OR INTERNATIONAL TRDE. IT may be- export trade Import trade Entrepot trade 18. COMMERCE = TRADE + AIDS TO TRADE When goods are sold to a foreign country, it is Export Trade When goods are purchased from a foreign country, it is Import trade When goods are imported for export, it is called Entrepot trade 19. AIDS TO TRADE Activities which assist trade are called aids to trade or auxiliaries to trade. Eg Banking, Insurance, Advertising etc.. 20. COMMERCE It is defined as those activities involving the removal of hindrances of in the process of exchange of goods. COMMERCE =TRADE + AIDS TO TRADE 21. FUNCTIONS OF COMMERCE 1. By providing transportation facilities, commerce removes the hindrances of place 2. By providing insurance facilities, commerce removes the hindrances of risk 22. FUNCTIONS OF COMMERCE 3. By providing warehousing facilities, commerce removes hindrances of time. 2. By providing banking facilities, commerce removes hindrances of finance 23. FUNCTIONS OF COMMERCE 5. Through advertising facilities, commerce removes the hindrances of knowledge. 6.buying and selling of goods or trade 24. E-COMMERCE It refers to the conduct of business transactions through a computer network. The media used for this purpose is the internet. Here the consumers can buy at any time from any seller located at any part of the world, from his home itself. 25. E Commerce Models OR E Commerce Transactions 1. B2B Transactions 2. B2C Transactions 3. B2G Transactions 4. B2E Transactions 26. 1. B2B Transactions Placing order with suppliers Transfer of goods between branches Transactions between businessmen collaboration 27. 2. B2C Transactions Business offering services to customers Consumer placing order Electronic payment Consumer seeking clarification on product details 28. 3. B2G Transactions Payment of tax Application for licences Seeking government clearance 29. 4. B2E Transactions Payment of salary Informing employees on business process Seeking employees suggestions Operation of welfare schemes. 30. Resources required for E-Commerce Computer with Telecom network and Internet facility Technically qualified & trained employees System of making payments using debit card, credit card, net banking, mobile banking Well developed websites Well developed telecommunication facilities