business definition economics Interpretation: Purpose, Use, and Types of Business

business definition economics Interpretation: Purpose, Use, and Types of Business

General business definition economics Interpretation

Actually, what does business definition economics mean? Business Interpretation is an activity that is tried by individuals or organizations that link activities of creation, sales,

purchase, or exchange of objects/services, with the aim of obtaining profits or profits.

The word “business” comes from English, is “business” which means a lot of activity. In a simple context, which is interpreted by many activities is to carry out an activity or work that shares benefits with someone.

The use of the word “business” can be divided into 3, depending on the scope. The word business can refer to:

  • Business Body is legal, technical, and inexpensive for profit-seeking.
  • Certain Market Zones, for example, the Capital Market.
  • All activities in the community of products and services.

Business Interpretation for Experts

In order to better master what business means, we can refer to the comments of some experts. The following is a business interpretation for experts:

1. Hughes and Kapoor

For Hughes and Kapoor, the definition of business is an organized activity of people to create and sell objects and services to benefit from meeting the needs of the people.

2. Brown and Fratello

For Brown and Fratello, business interpretation is an institution that creates objects and services that are needed by citizens and all matters that cover a variety of businesses that the government or the private sector try not to pursue or not.

3. Jeff Madura

For Jeff Madura, business interpretation is an industry that provides products or services that are desired by customers.

4. L. R. Dicksee

For L. R. Dicksee, the definition of business is a form of activity which is primarily aimed at gaining benefits for those who seek or who have an interest in forming these activities.

Business Goals

The main purpose of all businesses is to make a profit by producing objects and services needed by citizens. There are also some business goals that are like the following:

  • Make a profit from business activities.
  • Make the procurement of objects and services needed by residents.
  • Create reach for the welfare of the owner of the aspect of creation and citizens.
  • Produce jobs for residents.
  • Create displays of the existence of something industry in the long run.
  • To increase the progress and economic development of citizens universally.
  • Create displays of prestige and achievement.

Business Definition Economics Function

All business definition economic activities play a role in making an initial value less valuable and can meet the needs of the people after being processed.

There is also a part of business use as follows:

  • Form Utility is for creation where a business creates something or service that is needed by citizens. For example, the furniture industry, the financial services industry.
  • Place Utility is for distribution where a business distributes something/service to the closest position that can be reached by consumers.
  • Possessive Utility is for sales in business.
  • Time Utility is for storage and marketing in business, where objects at that time are less useful for later issued when the object is more useful.

For Steinhoff in his book The World Of business definition economics (1979), there are 3 main uses of business, namely:

  • Acquiring Raw Material is to find raw materials.
  • Manufacturing Raw Materials Into Product is replacing raw materials into finished objects.
  • Distributing Product to Consumers is to distribute products produced to consumers.

Types of business definition economics

The kind described above if the interpretation of this business definition economics at its conclusion is to refer to a particular scope or zone covered. There are also types of business as follows:

  • Agriculture Business is a business in agriculture or agro-business which includes agriculture, plantations, livestock, fisheries, and others.
  • The Raw Material Creation business is a business sector engaged in the mining, forestry, and other zones, where the products produced are raw materials for reprocessing.
  • Manufacturing Business is a business in the field of processing raw materials or raw materials into finished materials.
  • Construction Business is a business in the field of construction or infrastructure development, such as highways, high rise buildings, airstrips, and others.
  • Transportation Business is an effort in the field of transportation that helps citizens mobility in distributing objects.
  • Business Communication, is a business in the field of communication that helps citizens in matters of communication and data. For example TV, radio, telephone, and others.
  • The Large / Small Trade Business is a business in the commercial sector that functions as an intermediary between producers and consumers.
  • The Financial, Insurance and Real Estate business is a business in the financial sector that helps residents in terms of capital loans, insurance, as well as planning and property ownership loans.
  • Business Services are businesses whose activities produce and sell intangible products, are services, to create profits.
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