• A business can be defined as any economic activity which fulfils human needs and wants.

Needs

• Needs are the physical and mental requirements that  are essential for survival.
• Ex:
  • Food
  • Clothing
  • Shelter
  • Education
  • Health

Wants

• Wants are the various ways by which we like to fulfil our needs.
• Ex:
  • Food:
    • Rice
    • Noodles
    • Hoppers

Differance between Needs and Wants

Products

• Products are anything offered to the market to fulfil  human needs and wants.

Demand 

• Demand is created through  purchasing power, desire to buy and readiness to buy.

Production 

• Production is the process of generating goods and services to fulfil human needs and wants.

 Market

• Any form in which the buyer and the seller meet or contact each other is a market.
• Market can be created
  • Electronically
  • Physically
• Market can be divided as
  • Consumer market
  • Industrial market
  • Service market

Aims of Business

• Survival
• Profit maximization
• Sales maximization
• Increase of  market share