Chap1 meaning

Q. 1. What is business organization?

Ans: Every human being is busy in doing some activity. Human activities can be broadly divided into two types such as economic activities and not for earning money but out of love and affection, social obligation or religious obligations are called non-economic activities. Business is an economic activity because it is carried out to earn money or profit.

To carry out any activity smoothly and efficiently we need an organization. Organization means some set up or structure where some activity is carried out. Behind every activity there is some goal to achieve. Organization helps to achieve this goal. Success of any activity depends upon proper utilization of resources like men, money, materials. machinery, etc. Organization helps to utilize these resources properly and effectively. Thus, business organization is that organization where some business activity is carried out. Sole trading concern, Partnership firm, Joint Hindu Family firm, Joint Stock Company, Co-operative society, etc. are various forms of business organizations.