Published by: BhumiRaj Timalsina
Published date: 19 Jan 2022
The human society requires different types of economic activities. Such economic activities are performed to fulfill the needs and wants of individuals and families as well as to uplift their living standards. The nature and volume of the economic activities largely depend on the economic prosperity of the society. These economic activities should be performed in an organized way and efficient manner for the optimum utilization of scarce resources. In order to make optimum utilization of available resources, an appropriate form of business organization with available resources should be selected. The development of the forms of business organization is connected with the development of industry and commerce.
The term 'business' refers to all the economic activities, which are carried on by individuals and organizations for generating incomes. It is concerned with the production and distribution of goods and services for earning the profit. It is centered on the service and satisfaction of the customers by fulfilling their needs and wants. It involves risk and uncertainty and committed to fulfilling its responsibilities.The term 'organization' refers to the act of bringing necessary resources for the production and distribution of goods and services and utilizing them in the best possible manner for achieving the definite objectives. The production and distribution of goods and services require a number of resources like men, materials, money, machine, and management. The organization is a means for bringing cooperation among these resources for continuous production and distribution of goods and services for fulfilling needs and wants of the customers.The term 'business organization' is composed of two terms as 'business' and 'organization'. Hence, the term business organization refers to the act of bringing resources and utilizing them in the best possible manner for the production and distribution of goods and services in order to earn profit through the service and satisfaction of the customers. It is concerned with the proper management of available resources for achieving the specified objectives of the business. The resources can be managed either by an individual or by the government. The following are some of the main definitions of business organization:
"Business organization is the act of bringing into effective cooperation the available resources for production and distribution of goods with a view to earn the profit. " - Dr. A.N. Agarwala
"Business organization is a concern, company or enterprise which buys and sells, is owned by one group or group of persons and is managed under a specific set of operating policies." - Wheeler
Business can be established in various forms. It can be established and managed by an individual, group, government and other parties. so, on the basis of ownership and management, business organizations can be classified into the following forms: