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Introduction to Business

Chapter 1

Selim md. Kazi Student from BBA Department ,AIUB

What is Business ?
1.Business is doing something to earn money in a legal way. 2.Business is a way to earn money in a legal way. 3.Business is the new form of Butter system. 4.The aim of any Business is to maximize profit.

What is Butter system ?

Butter system is the system where previously it happened with the exchange of product. There is no money involve in Butter system. Simply it is the exchange of product. Product is the medium of exchange instead of money.

Objectives of business:

Maximize the profit Making job field Use the natural resource Contribution for the society Try to meet the demand of human being Increase the standard of living Pay Tax to government

Types of business
There are four types of business Those are : 1.Sole proprietorship business 2.Partnership business 3.corporations 4.Limited liability Companies

Sole Proprietorship business

One owner Small business Owner bears the all of the revenue and loss Easily you can built Easily break down High risk Owner personally run the business Trade license is enough to run the business and it is used as a legal document . Area of business is small It is perfect for the perishable product

Partnership business
When minimum two and maximum 20 people are going to built a business according to their mutual understanding to earn profit it is called partnership business. For banking purpose 2-10 partner built the business

Partnership business (cont)

More than two owner More capital than single business Large business area than single business Distribution of profit and loss Must follow partnership act 1932 to run the business