STRUCTURE OF BUSINESS

STRUCTURE - MEANING

The way in which several part of a system or unit put together.

BUSINESS STRUCTUREThe way in which a particular business is

constituted

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

CLASSIFICATION OF BUSINESS ON THE BASIS OF FUNCTIONINDUSTRIAL 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.

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

Public Sector Units

• Departmental undertakings• Public corporations• Govt. Companies

Private Sector Units

• Sole Proprietorship• Partnership• Joint Hindu Family Business• Company• Co-operative societies

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

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.

1.EXTRACTIVE INDUSTRY

1.EXTRACTIVE INDUSTRY

GENETIC INDUSTRY

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.

TERTIARY INDUSTRIES

• CONCERNED WITH PROVIDING SERVICES TO THE PRIMARY INDUSTRIES AND SECONDARY INDUSTRIES.

• Eg- Transport• Communication• Banking• Insurance

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

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.

TYPES OF TRADECLASSIFICATION 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.

TYPES OF TRADECLASSIFICATION 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

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

AIDS TO TRADE

Activities which assist trade are called aids to trade or auxiliaries to trade.

Eg – Banking, Insurance, Advertising etc..

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

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

FUNCTIONS OF COMMERCE

• 3. By providing warehousing facilities, commerce removes hindrances of time.

• 2. By providing banking facilities, commerce removes hindrances of finance

FUNCTIONS OF COMMERCE

• 5. Through advertising facilities, commerce removes the hindrances of knowledge.

• 6.buying and selling of goods or trade

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.

E – Commerce ModelsOR

E – Commerce Transactions

1. B2B Transactions2. B2C Transactions3. B2G Transactions4. B2E Transactions

1. B2B Transactions

• Placing order with suppliers• Transfer of goods between branches• Transactions between businessmen• collaboration

2. B2C Transactions

• Business offering services to customers• Consumer placing order• Electronic payment• Consumer seeking clarification on product

details

3. B2G Transactions

• Payment of tax• Application for licences• Seeking government clearance

4. B2E Transactions

• Payment of salary• Informing employees on business process• Seeking employees suggestions• Operation of welfare schemes.

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