Business Understanding, Business Benefits and Business Objectives

A. Business Understanding

Mr. Peterson along with Plowman explained that business is a series of activities related to the sale or purchase of goods and services that are consistently repeated (a series of activities related to the sale or sale of goods and services that are consistently repeated). According to Peterson and Plowman, the sale of merchandise or merchandise that occurs only once is not a Business Understanding.

Further added by Prof.L.R.Dicksee that the definition of business is a form of activity that primarily aims to gain benefits for those who seek or are interested in the occurrence of such activities.

B. Business Benefits

Then, what is the benefit in doing business? Of course, the main thing is to earn profits, especially in the form of money. Here are some business benefits:

1. Acquired Recognition / Recognition
Award or recognition can be obtained by doing business. Given a successful business and growing and growing and having a positive impact on society will give you positive recognition from the community itself.

2. The Opportunity To Become a Boss for YOURSELF
When else can you be the boss for yourself if not in the business you pioneered and create your own. By doing business, you will be the determinant and leader of your business. The size of your business is determined by your ability to be the boss.

3. Pay yourself
Not bad, you set your own income. That’s the benefit of building your business. The amount of income and also your source of income, you specify.

4. Organize Your Own Time
Your working hours, you set. That’s the benefit of doing cool business. If you are a civil servant, your working hours must be in accordance with the government’s request. Do you wanna become a businessperson? Working hours become more flexible. If you want to relax more, with increased business income, you can hire employees to replace you.

5. A brighter future
Your future, you can say that you set, the more you persist and the spirit of doing business, you will have a brighter future.

C. Business Objectives

Every business or company tries to process the material to be the product needed by the consumer, the product can be goods or services. The purpose of the company makes the product is to get profit, ie the rewards earned by the company from the provision of a product for consumers.

In general, the purpose of the establishment of a business or a company is not only profit oriented alone, but the overall objectives of the establishment of the company include:

1. Profit
2. Procurement of goods or services
3. Welfare of production and community owners
4. Full employment
5. Existence of company in long term
6. Progress or growth
7. Prestige and achievement

Although their primary goal is to make a profit but that does not mean that they have no other purpose than that, there are still many goals the businessmen want to achieve and the goals between one and the other may be different. Other goals to be achieve by the business players are:

· Want to meet the various needs
· To prosper the family
· Wanted his name is known to many people
· Because want to be the successor of family business
· Want to try something new
· Wanna take advantage of free time
· Want to own a business and not work for others.
· Wanna get sympathy. Etc.

D. Business Functions

The function of a business is to create the value (usefulness) of a product, which was initially less valuable, after being change or process into being able to meet the needs of the community / consumers. Utility Value (Utility Value) created by business activities, so it can meet the needs of society is summarized in the main function of business.

The main function of a business is to create the value of a product or service by:

– Business functions to change the form of business (form utility), which is none other than the production function
– Business serves to move the form (place utility), or distribution function
– The business changes the possessive (possessive utility), the sales function
– Business function delay time. (time utility), or marketing function

Steinhoff mentions three main business functions:

– To search for raw materials (acquiring raw material)
– Convert raw materials into finished goods (manufacturing raw materials into product)
– Distribute the finished goods to the consumers (distributing product to consumers)

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