Have you ever thought that what the world would seem like if there is no business? Look around and think about each and every business operating around you, then think of your life without them. Had they not been there, we would have to fulfil our each and every need by our own.
The businesses play a crucial role in our lives regardless of their size. We depend largely on them for our necessities. They provide us with goods and services. Not only this, but they also make a huge difference in our economy and affects the GDP of the country. Businesses are responsible for the wealth of the country.
Business studies is a significant subject that shares knowledge about the activities affecting human life. From our daily sale-purchase to the successful entrepreneurship, everything is described in the study of business. Its study helps you to perform all these roles in a better way and make a better decision using your money wisely.
IMPORTANCE OF BUSINESS STUDIES
If you have opted for the course of business studies, you will know about the establishment and operations of the businesses. You will be able to know the following things in a better way:
- Taking better decisions and choose the best among the alternatives to make a purchase whether it is a commercial transaction or personal.
- Making investments in such a way that you can get more return on investment and complete understanding about the terms of business and their working.
- Make students learn the skills required to run a business successfully.
FUNCTIONS OF BUSINESS
The businesses in Australia provides employment opportunities to a number of people. There are some other important functions of business as mentioned below:
Business mainly includes selling the products to the customers in exchange for money. But the entrepreneurs make various expenses to operate the business. Profit is termed as the value which is left after deducting the operating expense from the income. In other words, the income has to be greater than the operating expense, only then there would be profits.
Business plays an important role in employing the people. Employment can be referred to as an agreement between the employee and the employer, according to which the employer offers a particular service and make sure that:
- The employee has to work at the designated workplace.
- The employee has to work for the accomplishment of the common goals of the organisation.
- The compensation in the form of salary would be given to the employee in exchange for the work performed by him.
- The agreement can be in written in the offer letter of the employee, official mail or can be verbal.
Income is another important part of the business. The only motive behind running a business is earning income by getting a high rate of returns on the investment. The entrepreneurs hire staff to operate their business and provide them with:
- Wages These are based on the number of hours one has spent on work.
It is the fixed amount that is committed to a worker and usually given on a monthly basis.
Another important aspect of the business is the innovation. For the development of the business, it is important to innovate new ideas and concepts and to make developments in the existing ideas too. The innovative ideas should be economical, and it must be satisfying the needs of the customers.
Entrepreneurship and risk
There are certain risks involved in entrepreneurship. Business comes with an idea, and its transformation makes you a successful entrepreneur. But it is the matter of the risk that one has to bear. With high risk, there is the probability of high rate of success and consequently great profits.