What is Business System

What is business?

An organization or economic system where goods and services are exchanged for one another or for money.

Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit.

Business Process

A business process is a collection of linked tasks which find their end in the delivery of a service or product to a client.

Examples of business processes include receiving orders, invoicing, shipping products, updating employee information, or setting a marketing budget.

Business System

Following are the basic ingredients of any system:

Inputs: consists of human and non-human resources like money, material, equipment and information.

Processing: Consists of production, finance, personnel, marketing, processing of information and

Output: Consists of goods and services, compensation to owners and employees, meeting societies expenditure

Feedback: Consists of  If result not acceptable adjust resources – like better machinery and better management.

 

Types of Business

There are three types of business.

1. Manufacturer

2. Distributor

3. Fabricator

Manufacturer

Entity that makes a good through a process involving raw materials, components, or assemblies, usually on a large scale with different operations divided among different workers.

Distributor

An entity that buys noncompeting products or product lines, warehouses them, and resells them to retailers or direct to the end users or customers.

Most distributors provide strong manpower and cash support to the supplier or manufacturer's promotional efforts

Fabricator

Fabricator (mechanical skill), a person versed in many trades who is able to construct a complex finished product from a simple idea.

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