Nature and scope of Business

The scope of business is very comprehensive. It encompasses all human activities, which tend to satisfy needs and wants of the human beings living in a society. A large part of the business is concerned with providing the final or finished products or goods to the desired people.
Business is universal and everywhere. It is essential to ensure the production and distribution of goods and services to satisfy the economic wants of people at a profit. The nature and scope of business are changing very quickly. The people who are engaged in business, must have to cope with the changing environment because the people’s attitudes, habits, tastes, likes and dislikes, norms, beliefs, values, perceptions and motives are changing with the change of time.
Profit earning cannot be the sole motive of business activity. Businessmen do have a social responsibility too that must be met. Because organizations produce goods and services to generate profit but such activities create impact on society as well as the whole community. The responsibility of businessman is to provide the goods and services in a way which is not harmful to the society.

Definition of Business

Business is a term with a very wide meaning. It refers to an activity of people working for the purpose of producing and distributing goods and services at a profit. A business activity creates utilities by production of goods and services to satisfy human wants. simply, business is an activity of people directed towards satisfying human wants at a profit. In broad sense, business is the activity performed by an individual or a group of people with a view to earn profit within the government rules and regulations.
Various authors have defined business in different ways. Some of them are quoted below.”-
“Business may be defined as any form of commercial activity to satisfy the economic wants of people at a profit.”- Keith Davis.
“Business is any enterprise engaged in production and distribution of goods for sale in a market or rendering services for a price.”-Professor Owen.
Finally, business without profit or loss is no business. It is the whole complex field of trade, commerce, industry and the network of ancillary services, distribution, banking, insurance, transport and so on which serve and penetrate the world of business as a whole.