In the case of a single- product, or closely-related products, organization, business definition is easy because it might be confining in a narrow range of business and offering limited range of products. It cannot compet… Report a Violation 11. Managers integrates the economic theories with the business practises and takes decisions as well as plans the activities of  business. There is no end of wants. As against this, many companies do not include everyone in its customer segment. Categories of customers, (who), ii. Customer functions originate from the products or services provided to the customers. Business Definitions – Dimensions and Levels of Business Definitions, Abell suggests that a business may be defined along three dimensions- customer groups, customer functions, and alternative technologies, Business Definitions – With Attributes of a Good Business. What is our business? What do you mean by Business Economics? Therefore, let us see the dimensions of business definition. Learn about the definitions of business provided by various eminent authors and institutions like B. O. Wheeler, Davis and Blomstorm, Keith & Gul Bellin , Boono & Krutz, Lewis H.Haney, James Stephenson, Buskirik, Green & Robgers, Musselman & Hughes, Peterson and Plowman, F.C.Hooper, Apple Corporation of USA, Hewlett-Packard Company of USA, Hindustan Lever Limited, Nestle India Limited and Others. It prescribes the boundaries of the firm’s business (s). Customer needs, (what), iii. Profits are a mechanism for motivating these activities”. Thus, the problem of scarcity of resources gives rise to the problem of choice. TOS4. The term ‘Business’ means busy-ness or a ‘state of being busy’. It is an elaboration of the business scope or span it will play in. In his bid to raise economics to the status of a positive science, Robbins deliberately downplayed the importance of economics as a social science. It was assumed that human beings acted as rational economic agents who mindlessly strived to maximize their own well-being. Intel – We are in the business of computing technology and to consistently develop the artifice/building blocks of computing technology for the entire computer industry of the world is our business. As a result, different definitions have evolved. Economics studies the ‘ordinary business of life’ since it takes into account the money-earning and money-spending activities of man. Robbins could not explain social problems as well as social choice. To him, wealth may be defined as those goods and services which command value-in- exchange. It binds itself with boundaries of the firm’s business or businesses. Aggregate supply and aggregate demand are both plotted against the aggregate price level in a nation and the aggregate quantity of goods and services exchanged, Join 350,600+ students who work for companies like Amazon, J.P. Morgan, and Ferrari. Alternative technologies explain the manner in which a particular function can be performed for a customer. His definition runs in terms of scarcity: “Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.”. So, economics should pronounce both positive and normative statements. It neglects other activities of human welfare not quantifiable in terms of money. The most accepted definition of economics was given by Lord Robbins in 1932 in his book ‘An Essay on the Nature and Significance of Economic Science. It must be wide enough to embrace new opportunities. Business includes wide range of activities like manufacturing, trading, transportation, banking, insurance, warehousing and finance. Then, price does not become a differentiating factor. The Marshallian definition, like the Smithian definition, ignored the problem of scarce resources, which possess unlimited potential uses. A business definition is a pithy or cogent and clear cut statement of the business or businesses the firm is engaged in or is planning to enter into. In the words of Lewis H. Haney, “Business may be defined as human activity directed towards producing or acquiring wealth through buying and selling goods”. Thus the mission gives the clues for the business definition. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Business involves decision-making; and business economics serves as a bridge between economic theory and decision-making in the context of business. Nature of business is one of the components of mission of an organization. Units Topics 1. This nature of business is expressed in the form of business definition. The earlier term for 'economics' was political 'economy'. 3. His emphasis on wealth as a subject-matter of economics is implicit in his great book— ‘An Inquiry into the Nature and Causes of the Wealth of Nations or, more popularly known as ‘Wealth of Nations’—published in 1776. At the corporate level, the business definition should focus on how the corporate level adds value to the constituent businesses of the company. Economics studies only the ‘material’ part of human welfare which is measurable in terms of the measuring rod of money. But other important aspects of economics like national income and employment, banking system, taxation system, etc., had been ignored by Robbins. Business Definition sets and limits the contours of the business. That is why, Dr. P.F. Mission Statement provides the basic inputs for business definition and provides a broad frame work. Yet, to a layman, business still means industry and commerce. It is necessary to take this broad view because the influence and involvement of business are extensive. They would be solved with the help of economic theories. Alfred Marshall in his book ‘Principles of Economics published in 1890 placed emphasis on human activities or human welfare rather than on wealth. However, such a definition becomes somewhat difficult and complex for a diversified organization offering different unrelated products. Abell suggests that a business may be defined along three dimensions- customer groups, customer functions, and alternative technologies. vii. Public profiles for Economics researchers, Various rankings of research in Economics & related fields, Curated articles & papers on various economics topics, Upload your paper to be listed on RePEc and IDEAS, RePEc working paper series dedicated to the job market, Pretend you are at the helm of an economics department, Data, research, apps & more from the St. Louis Fed, Initiative for open bibliographies in Economics, Have your institution's/publisher's output listed on RePEc. iv. It is very difficult to spell out a logically concise definition. Characteristics of Business Economics 3. Business economics is, thus, an applied economics. Content Filtration 6. Robbins defined economics in terms of allocation of scarce resources to satisfy unlimited human wants. Business Definitions – With Dimensions, Level and Purpose of Business Definitions, Essays, Research Papers and Articles on Business Management, Marketing and Selling | Difference | Functions | Marketing Management, Business: Meaning, Characteristics and Objectives, Top 6 Competitors of a Business | Business Management, Business Incubators: Meaning, Definition, Services, Development and Types. Abell suggests defining business along three dimensions: Customer groups refer to ‘who’ is being satisfied. Business cannot isolate itself from the rest of society. Another classical economist Nassau William Senior (1790-1864) argued “The subject-matter of the Political Economics is not Happiness but Wealth.” Thus, economics is the science of wealth. Therefore, the business definition is a pre-requisite for further courses of action.

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