Safety Measure

As precaution is better than cure similarly precautions or the safety measures may proved protection against the business risk. The organization where necessary equipments, generators and alarm system are maintained against the power failure. fire and theft, they minimize the losses through as leakage, power break down, theft , fire etc. In other words, the business risks could be minimized to the minimum through the safety measures.

Forecasting

Some business men are not only intelligent and laborious but are also equipped with characteristic of foreseeing. They are capable to anticipate weather seeing the direction of wind. They remain informed about the future risks like change in the market circumstances, increase in the costs, shortage in the supply to raw materials, price oscillations etc.

Substitute Goods and Services

According to this precautionary method, the organization which produce goods also produces their substitute goods and services so that if the use of fashion of one commodity comes to an end, the losses could be compensated by giving boost to other substitute goods and services. This method could also be used in case of services. For instance the persons or the officer whose services are indispensable for the company, its substitute should be kept ready or the other officer should be provided training in the same line of service so that he must provided protection to the organization against the losses that are possible in case of death or retirement of the original man.

Insurance against the Risk

The organization in the form of insurance companies have come into being which assume the risk to business organization and so the business is freed from the insurance risk. The amount paid as the premium of insurance is much less than the loss which is possible to occur. In the modern age, the amount of premium if insurance is treated as the cost of production.

Creating a Separate Fund

In some of the business lines, the producer creates a separate funds and continues to deposit a certain amount of the annual profits in this fund. Gradually a huge amount is deposited in this fund which could be used to compensate any incidental loss. It should be noted that his fund could be kept on a small level. It is neither suitable nor possible in a big business undertaking to create a separate funds.

Low Investment Policy

Some of business are concerned with the rapidly changing circumstances like the garment business, cosmetics and fashion goods, electronic goods etc. Starting such business it should be seen that what is the minimum investment frontier below which investment can't be curtailed. The volume of losses, in this manner, could be minimized. The investment should be made whatever it should have been.

Mobility of Capital

Commercial banks make the mobility of capital better because the borrowers and lenders come closure. In other words, these banks are the mediators between the debtors and the creditors. Commercial banks collect the money from those who can't use it and provide it to those who possess the ability to use it. The banks, in this way, play crucial role in making the funds mobile from one to other place.

Capital Formation

Commercial Banks are the source of capital formation through promoting the habit to save. Small amounts are converted into the huge funds. When these big amounts are invested, opportunities of maximum use of the country's resources are created due to which the country develops.

Promotion of Investment

Savings that are deposited with the commercial banks are provided to the people as loans so the banks invest. The savers are freed from the problem of investing their funds. In other words, commercial banks make the people free from the investment problem.

Promotion of Saving Habit

Saving take place only when there are opportunities for their investment. If the people have the savings as cash, it will be consumed will not be saved. But if the savings are deposited with the bank, it will be out of sight. Since the deposited amount is out of sight, the people think to consume it late. This attitude of the people becomes the cause of savings. In other words, the banks provide the motivation to the people save.

Labor Union

A Labor Union is an association of the worker formed for the purpose of improving the conditions of employment. The fact about a worker is that an individual worker is poor, ignorant and helpless. So he is in a weak position and cannot bargain with his powerful employer. he tries to pay his workers as small wages as possible without driving them away. The trade union is an organization which aims at strengthening the bargaining power of the workers, by substituting collective for individual action. The underlying principle of the trade union is UNION IS STRENGTH.

Profits Yields Mutual Benefits

Profit yield as to invest . A size able portion of profits go to Government in the form of taxes. The revenue from profits is then used to finance many Government program of social improvement.

Profits as Source of Capital

An important source business also borrow money so that the necessary funds to carry on their opposite they must make enough before profits to pay interest and to save enough from profits to pay debts as they are due.

Profits as Pay for use of Capital

One of the most important and major purposes of capital is to compensate the millions of owners, proprietors, partners or shareholders for the use of the capital they have invested in a business. Profits also must compensate them for taking the risk in them, that capital may be lost should the business fails. If it were not from this hope of compensation, few people would want to invest in a business.

Profit Allocate Resources

It acts as a strong inducement to put resources into those economic operations that serve the public best. By buying what they want at the lowest price, customers who are all of us vote in further of allocating resources in certain ways. In some under developed countries. Government Planners decide how to resources required for production Land, labor capital and so on will be allocated.

Profits as Surplus

Surplus of every business is called Profit. It seems both logical and in the social interest for all managers in any kind of enterprise and at any level in any enterprise, to manage their operations so that their groups will accomplish its purpose at the least cost whether in money, time, effort, discomfort or materials or will accomplish as much of the purposes possible with the resources available.

Business Allowed to make Profits

Profits help bring about efficiency and effectiveness in business operations. They also provide a return on capital invested, create more capital and contribute to Government Tax revenues. Profits are much lower that must people believe, although most people do not believe to be too high.
Some of the important of the term Profits are listed above in every post.

Mail Order Business

The world has now expanded in a way that face to face business become impossible. Development of Communication has solved this problems. Communication and Mail Services by air, sea, and land have provided bright prospects to business circles. For instance, FAX is also a developed form of mail. Since recent past, introduction to business through catalogs, magazines and journals has been followed in all developing and developed countries.

Bank Rate Policy

It is also known as Discount Rate Policy. Bank rate is the rate of interest which is charged by the Central Bank or re-discounting the first class Bills of Exchange and advancing loans against approved securities. This facility is provided to other banks.
When the Bank rate is raised or lowered by the Central Bank all other rates of interests are also raised or lowered by other banks at the same time. If the Central Bank finds at any time, that the prices are rising, it will rise the Bank Rate. This will be followed by the rise in the rates of interest charged by the other banks.

Automation of Production

Computer can control complex industrial processes and even run machine tools. Computer take directions from a blue print and transfer then into instruction that are then feed to machine tools by means of purchased card or magnetic tape.
With the help of computer system we can easily reserve a seat on an airplane, a bed in a hotel or a seat at abase ball game by dialing a telephone number, recording a report of what is available.

Discount Policy

The allowances of discounts or established or list prices for products may be necessary or customary in the trade. Under these conditions, an allowance for discounts should be established prices to be quoted to customers.

Delivered Prices Policy

In those cases when the manufacturer bears the responsibility of delivering the goods to the purchaser, he changes a different price which is called delivery price. This, of course, includes transportation, loading, unloading or other incidental expenses in the base prices of the product. As opposed to this policy is the factory price in which case the manufacturer will be responsible only for loading of the goods on a desired career and other expenses will be bored by the purchaser.

Nominal Partners

A person who is not a partner but who lends his name out as partner, becomes liable as a partner to those, who on the faith of this representation being a credit to the form. The person is fixed with the liability of a partner to prevent frauds to which creditors would liable. When a person, in such a manner, holds himself out as a partner or allows others to do so. he is then assumed and be is known as a nominal partner, a partner be stopple or a quasi partner. Such a partner, becomes liable for that transaction, but he is not entitled to any right against those who are, in fact, partners in the form, for which his name has been utilized.

Accounting and Finance

This is most interesting and offer promising career in business. The accounting and finance area afford a chance to look at the business opportunities as a whole and to see how they fit together. All operations and business activities boost down to money, a common domination and judge then viability. Man of money in all operations and phase.

Purchasing

Buying a wide range of machinery, materials, supplies, parts and components , has become a very important area of business. People in purchasing, because of their close relationship to suppliers, are also an important pipeline of the information on new products and development that may be beneficial to their company. Thus good opportunities for young persons do exist in this field of business also.

Information and Processing

Information are vital for the success of a business firm. In fact, to manage a business is to manage information. The introduction of computer has created the need for a new kind of specialists. There must be some one who knows how to release a computer program to the specific need of business.

Engineering and Research

As products and services have become more complex and based on a advanced sciences, engineering and research opportunities exist in almost every kind of business enterprise. Opportunities for young persons are wide open in this field as businessmen no longer look for an Edison is great. Inventor Thomas Edison who was not a Graduate.

Marketing and Sales

In modern World marketing and sales have assumed a wonder popularity. Now a days many enterprises required salesmen. It requires persons who can study and analyze customers behavior, market, competitors and prices. Sales and marketing people are usually major link between a company and the outside world.

Different Field of Business

Opportunities in business operations be scatted in marketing and sales, engineering and research, production and information processing, purchasing, accounting and financing and in business management and young graduates expect power, prestige and financial reward which motivate them in any of these phases. Let is briefly discuss each of these areas and then divide the career.

Social Mission and Opputunity

There is no denying the fact that "Social Mission of Business is to produce goods and services of economic nature." Its foremost mission is to satisfy customers in predominant or what the customers require at low prices and with the experience of the high profits represents difficult and challenging opportunities to every one involved in business.
Social mission of business is not restricted to the act of providing goods and services required by the society. In fact, social mission and opportunities go well together. It is the business which brings changes in cultural heritage by bringing changes in tastes and fashion of people of an orthodox or conservative society. It is the business which brings change in cultural heritage by bringing changes in taste and fashion of people of a orthodox and conservative society. It is the business which sometimes changes the outlook of the entire nation. Apart from profit motive a businessmen can serve the society in many ways with missionary zeal and favors.

Maintenance of Record

Different information regarding the price source of supply, quotation purchasing order etc, are required to be kept for proper purchase routine. A separate file for each information is maintained in order to avoid the repetition of all steps every time. There is no need of asking for quotation, finding out the source of supply etc, if proper records have been maintained which is simply referred as and when they are required.

Placing of Order

As soon as the vendor or vendors have been selected the next step is to prepare the purchase order. Purchase order being an agreement to buy the material should very carefully be drawn. All the positive information relating the material is mentioned in the purchase order as:

1. Description of Quantity
2. Quantity
3. Delivery Date
4. Place of Delivery
5. Order Number
6. Discount and Billing Terms

Requisition if Material

The need for purchasing the articles does not originate in the purchased department. Different departments, such as producing, engineering, sales etc, require materials tools and various articles which must be communicated to the purchase department. It is through this requisition that the purchases department is informed and asked to purchase the material thereof. Heads of departments are authorized to prepare the requisition which contain such information as the (1) Name and the description of Material (2) The Quantity (3) The Time of Delivery (4) The place to which it is delivered. This report must be signed by the requisition.

Good Purchasing System

The establishment and organization of purchases department will depend mostly on the size and nature of big concerns, where generally the volume of purchase is larger, the articles purchased are of various types , and design , technical and export knowledge is essential on the part of buyers, the price is changing nature etc, a separate and an independent purchasing department is established. But when the concern is small and separate establishment of purchasing is either attached with sales or manufacturing department. When the merchandise is purchased with a view to resell them, purchasing may be placed with the seller, If the articles purchased are meant for producing certain finished goods purchasing may be put under the control of manufacturing department.

Market Financing

Financial assistance is not only required by the consumers in the form of credit facilities from the distributors but also required by the wholesalers, retailers, middlemen and manufactures. Wholesalers provide finance to the retailers by selling commodities in credit. Manufacturer extend credit to the wholesaler and retailer provided credit to the consumers. Banks and financial institutions may also provide the help of financing the market at different stages wherever required.

Standardization and Grading

Standardization is defined as : the determination of basic limit or grades in the form of specification to which manufactured goods must confirm and classes into which the products of agriculture and extractive industries may be stored. Grading is the process of sorting units of a product, into the grades or classes that have been established through the process if standardization.

The Function of Physical Supply

Transportation: This is one of the most important functions of marketing which involves the physical transfer of commodities from the place of production to the place of consumption. It creates place utility and makes available the goods when they are in greater demand.

Warehousing: The transfer of goods from the place of production to the consumers necessitates a great deal of physical handling. Goods must be stored either at the premises of the production or on those of middle men and eventually they must, of course, be transferred to the consumer.

The Functions of Exchange

Buying : Buying which includes transfer of title is the marketing function of controlling and concentrating goods to facilitates sales, purchase, production or uses. Buying involves on the part of the purchaser, a determination of the kind, quality , quantity, time and price of goods to be bought.

Selling: One of the most important functions of the modern production is that of establishing a market for his products. Selling refers its transfer of the title to a commodity.
Selling is (a) Personal , or (b) Impersonal

Personal selling is oral presentation in conversation with one or more prospective customers for the purpose of market sale.

Impersonal selling refers to advertising and sale promotions.

Marketing

Marketing concepts , importance, Marketing Mix. Product and its types, product life cycle. Channels of distribution for consumer and industrial goods. Market Segmentation , Sales promotion and advertising , warehousing , Wholesaling and Retailing , Middlemen Role and classification Pricing decision and strategy.

Content of Business

Nature, scope and importance. Problems of business functions and qualities of businessman. Business environment and social responsibility. Role of business in economics systems. Business under private and public ownership.