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Functions, Objectives & Types of Business [LENGKAP]

Definition of Business

In general Understanding Business is an activity carried out by individuals or groups of organizations that carry out sales, production, distribution, purchase or exchange activities goods and services. And this business activity also has a purpose to gain profit or profit.

Etymologically, "business" is a word derived from English, namely [business] [business] which means busyness. Which means to do or work on an activity or work that can provide or produce a profit for someone.

The word "business" can be used depending on the scope. There are 3 ways to use the word business, namely:

  • Business Entity namely technical, juridical, and economic unity for profit.
  • Specific Market Sectors for example like the Capital market.
  • activities in the producer or producer community of goods or services.

 Understanding Business is

In addition to the above explanation regarding the definition of business in general, there are also some experts who express their opinions on business terms. To better understand what business is, then here are some expert opinions that you can refer to, including:

1. Brown and Pretello

According to experts named Brown and Pretello, said that the notion of business is an institution that produces or creates an item or service that is needed and desired by the community and all things concerning various businesses carried out by the government or private they pursue profits or not.

2. Griffin and Ebert (1996)

According to Griffin and Ebert the notion of business is an activity that provides goods or services needed and desired by consumers or society.

Business activities can be carried out by a company organization that has a legal entity, or business entities, or individuals who do not have a legal entity or business entity. For example, for example, street vendors, stalls that do not have Business Place Permits (SITU) or other informal businesses.

3. Hughes and Kapoor

According to Hughes and Kapoor, business is an organization that provides goods or services to make a profit. A business or company is said to succeed in gaining profits or profits if the total revenue in one period is greater than the total costs incurred.

Profit or profit is the most important attraction in conducting business. Through the profits they get, the business person can develop his business so that he can produce even greater profits or profits.

4. Allan Afuah (2004)

According to an expert named Allan Afuah, he stated that business is an organized or structured business activity to produce and sell goods or services to gain profit or profit in meeting the needs and desires of the community.

Usually people who run a business are sure to make money and their time is used and they must also be at risk, they are commonly referred to as Entrepreneurs .

5. Hooper

According to an expert named Hooper, argued that business is a very complex activity that is usually done in the industrial sector, banking transportation, sales, distribution, and so forth. The purpose of the activity is to benefit those who do it.

Functions and Business Objectives

 Business Functions and Business Purposes

Every activity must have a function and purpose. Well, so is business. Business also has functions and objectives. The following are some of the functions and business objectives, including:

A. Function

All activities related to business have a function to make everything that initially has value becomes less something that has high value and can fulfill everything needed by the community. The following are some business functions, namely:

1. Production Function

The first business function is a production function, namely a business function at the time of production where a business produces an item or service needed by the community. For example, furniture companies, financial services companies, etc.

2. Distribution Function

The next function of a business is a distribution function, that is, a business function during distribution where a business distributes or distributes goods or services to the nearest location or region that can be reached by consumers or the public.

3. Sales Function

The next business function is a sales function, namely the business function when making a sale or when a company sells goods or services to consumers.

4. Marketing Functions

The next function of the business is the marketing function, namely the business function at the time of storage and marketing, where goods produced at that time are less beneficial to consumers and later the goods will be released when the goods have more benefits for consumers or society.

In the book [TheWorldofBusiness (1979) written by an expert named Steinhoff, there are 3 main functions in business activities, namely:

  • Acquiring Raw Materials namely functions to search for raw materials.
  • Manufacturing Raw Materials Into Product a function for converting raw materials into finished goods.
  • Distributing Product to Consumers which is a function for distributing or distributing products produced to consumers .

B. Purpose

In the business world definitely has a purpose, for what the business is built and developed. The main purpose of a business is certainly to obtain and earn profits or profits from goods or services produced needed by the community.

However, not only profit or profits are pursued by a company. The following are some business objectives, namely:

Types of Business

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The longer a person's life, the more needs they must fulfill. So many types of businesses are growing too. There are several types of businesses, which are based on their activities and based on their uses. The following is the explanation, namely:

1. Type of business based on its activities

Business based on the type of activity, divided into 4 types, namely:

a. Business Agriculture

An agricultural business is an activity or business activity carried out in the fields of agriculture, plantation, animal husbandry, fisheries, and so on. For example, such as fish, cattle, goats, etc.

b. Extractive Business

Extractive business is a business activity carried out in the mining sector, namely by digging or dredging mining materials owned by the bowels of the earth. Examples of mining materials are coal, iron, gold, diamond, copper, oil, natural gas, etc.

c. Business Services

Service business is an activity or business activity carried out in the field of services that produce or create a product that is invisible or formless. For example, such as tourism, insurance services, education health, beauty, etc.

d. Industrial Business

Industrial business is an activity or business activity carried out in the industrial field manufacturing . For example, such as the textile industry, airplanes, cigarettes, paper, garment, etc.

2. Business based on the type of use

Based on the type of use, the business is divided into 4 types, namely:

a. Form Utility (19659061] Form utility is a business activity or activity that changes and processes an object into a different form from the previous form so that it can have more benefits for the community. For example, such as furniture, bread, clothing, etc.

b. Place Utility (Usefulness of place)

Place utility is an activity or business activity that transfers something from one place to another that can have more benefits and move in the field of transportation. For example, such as goods transportation, human transportation, sea, land, air, etc.

c. Time Utility

Time utility is an activity or business activity that conducts its business by storing goods with the aim that if the goods released do not have benefits for consumers, the goods will be stored, and will be reissued if the item has benefits for its customers. For example, such as warehousing in ports, bulogs, etc.

d. Possession Utility (Usefulness of ownership)

Possession utility is a business activity or activity that carries out its business to create or produce and fulfill the use of goods or services it has. For example, such as trade, shops and so on.

Thus our discussion this time regarding the notion of business, along with functions and objectives, and also types – types of business. Hopefully you can better understand and clearly understand what business is, as well as its functions and objectives, and types. Hopefully this article can be useful. Thank you 🙂

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