CATHOLIC UNIVERSITY OF SOUTH SUDAN - JUBA

FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION

DEPARTMENT OF BUSINESS ADMINISTRATION

COURSE CODE: CBA 317

COURSE UNIT: BUSINESS ORGANIZATION

CLASS: THIRD YEAR

SEMESTER: ONE

ASSIGNMENT NO: ONE

BY: AJAK SAMUEL AYAK

REG NO: BBA 009/20

SUBMITTED TO: MR. DAVID DIENG

DATE: 2ND – NOV – 2022

DEFINITION OF BUSINESS ORGANISATION

Business
According to Urwick and Hunt” Business is any enterprise which makes, describes or provides
any service which other members of the community want and are willing to pay for it.
Organization
Louis Allen “ organization is the process of identifying and grouping work to be performed,
defining and delegating responsibility and authority and establishing relationship for the purpose
of enabling people to work most effectively together in accomplishing objectives.
Business Organization
Is one or more businesses controlled in common by person or group of people.

SCOPE OF BUSINESS
I. Industry :
The term industry refers to that part of business activity which directly concerns itself with
production, processing or fabrication of goods and services. It creates form utility. In industry,
raw materials are converted in to finished products, which can be used for consumption. Some
industries manufacture consumer goods while others manufacture capital goods. Following are
the various types of industriesa) Primary IndustriesThese industries are engaged in the
production of primary goods, such as rice, cotton, fish etc. The best examples of this type of
industries are Agriculture, fishing etc.
b) Genetic Industries :
`Genetic industry involves breeding and reproduction of plants and animals for the purpose of
sale. Poultry, Plant nurseries, sericulture etc. are examples of genetic industry. The price of
products available from such activities is generally less.
c) Extractive Industries :
Extractive industries extract valuable minerals, ores etc. from the natural elements like soil,
water and air. These industries are concerned with the discovery and utilisation of natural
resources such as minerals and forests.
d) Manufacturing Industries :
Manufacturing industries are concerned with the conversion of raw material into finished goods.
They create form utility. The products of primary and extractive industries such as cotton,
ironore, crude oil, etc. are used as a raw material in these industries.
e) Construction Industries :
Construction industries are concerned with the construction work like construction of bridges,
dams, canals, roads, harbours, building etc. These industries do not operate in factory buildings
but at the site allotted..
f) Service Industries :
Service industries produce intangible goods i.e. goods which can’t be seen or touches for
example transport, insurance, banking etc. These services are essential and useful for the
expansion of business.
II. Commerce :
Commerce involves all those activities which facilitate transfer of ownership and movement of
goods from the centers of production to the centers of consumption. In other word it involves all
forms of trade and the services that assist trading. Commerce include trade and aids to trade.
A) Trade :
Trade means buying and selling of goods and services. It involves transfer of ownership of goods
from the seller to buyer against money. In other words, trade is an exchange of goods and
services for a price which the consumers are ready to pay. Consumers may be an individuals,
government and industries who need raw materials.
1. Internal Trade :
Internal trade is also known as home trade. It is conducted within the country. It can be at local
level, regional level or national level.
a) Wholesale trade :
It involves buying in large quantities from producers and selling in smaller lots to retailers. The
wholesaler is a link between manufacturers and retailers.
b) Retail Trade :
Retail trade involves buying in smaller lots from the wholesaler’s and Selling in very small
quantities to the consumers for personal consumption. The retailer is the last link in the chain of
distribution. He established a link between wholesaler and Consumers.
2. External Trade :
The trade carried on between the traders of two different countries is called external trade. It is
also called as International trade or foreign trade. It includes following trade.
a) Export Trade :
Export trade involves selling of goods from one country to another. For example, when goods
are sold from India to America.
b) Import trade :
Import trade involves buying of goods from a Seller of another country. For example, a buyer
from India purchases goods from a seller of china.
c) Entrepot trade :
When goods are imported from one country and then reexported to some other country, it is
called entrepot. For example an Indian trader may buy goods from Bangladesh and then sell it to
Pakistan.
B) Aids-To-Trade
Aids to trade constitute another component of commerce. Aids to trade include various agencies
which are useful for the conduct of trading activities. There are as follows.
a) Warehousing :
There is a time gap between production and consumption. However, goods which are produced
at one time are not consumed at the same time. Hence, it becomes necessary to make
arrangement for storage or warehousing. Agricultural commodity like wheat and rice are
seasonal in nature but are consumed throughout the year. On the other hand goods such as
Umbrellas and woolen cloths are produced throughout the year but are demanded only during
particular seasons. Therefore goods need to be stored in warehouses till they are demanded.
b) Transport :
There is a place gap from the place of production to the place of consumption. Goods are
produced in one part of the country and Consumption in other parts of the nation. Transport fills
the place gap. It meets out the gap between producer and consumer. It helps the manufacturer to
expand their markets from local to regional, regional to national and national to global.
c) Communication :
Communications facilitates transfer of information. It involves transfer of messages from one
person to another and from one place to another. It can be in oral or writing form of information.
Oral communication can take place through telephone or personally. Written communication is
possible through letter, fax, e-mail etc. It facilitates quick transfer of messages to take important
decisions quickly.
d) Insurance :
Insurance reduces the problem of risks. Business is subject to risks and uncertainties. These are
inevitable in the field of business. Risks may be due to fire, theft, accident or any other natural
calamity. Insurance companies who act as risk bearer cover risks. Insurance tries to reduce risks
by spreading them out over a greater number of people. The rate of premium depends upon the
type of risks and the period for which the risk is covered.
e) Banking :
Banking solves the problem of payment and facilitates exchange between buyers and sellers.
Lending and borrowing the funds are the traditional functions of the banks. Banks provide short,
medium and long term loans to the needy people. Other functions have started gaining
importance such as merchant banking, development banking, credit cards etc. This has further
facilitated to trade.
f) Advertising :
Advertising as a powerful marketing tool of communication is highly useful to the manufacturer,
retailers, consumers and the society at large. Advertising is basically designed to inform, create
interest and induce people to act in a particular way. It can be used for communicating both
commercial and non-commercial messages. It creates awareness of the product and builds a good
brand image in the minds of consumer and society at large.
g) Salesmanship :
Salesmanship refers to personal presentations by the firm’s sales force for the purpose of making
sales and building customer relationships. It facilitates personal selling. The salesmen provide
information to the buyers. They convince and persuade buyers to buy goods.

h) Mercantile Agents :
In the process of distribution, producers and consumers are unable to have direct contact, as
consumers are spread over a vast area; mercantile agents remove this difficulty of personal
contact. Mercantile agents are the intermediaries who form a link between the buyers and the
sellers. They do not carry business in their own name. These are several types of mercantile
agents such as brokers, commission agents, auctioneers, underwriters, insurers, etc

RESPONSIBILITIES OF GOVERNMENT TOWARDS BUSINESS

1. Provision of Basic Infrastructure
Government should provide basic infrastructural facilities such as transportation, power, finance,
trained personnel and civic amenities, which are indispensable for the effective functioning of
business concerns.
 2. Supply of Information
It is the responsibility of the Governments to provide information, which is useful to
businessmen in carrying out their business activities. Government agencies publish and provide a
large volume of information, which is used extensively by business firms. This information
normally relates to economic and business activity, specific lines of business, scientific and
technological developments, and many other things of interest to business houses or business
leaders.

3. Assistance to Small-scale Industries

It the responsibility of the Government to provide the required facilities and encourage the
development of small-scale industries to overcome the problem faced by them.
4. Transfer of Technology
It is the responsibility of the Government to transfer to private industries whatever discoveries
are made by the Government – owned Research Institutions so that they can be used for
commercial production.

5. Conducting Inspections
It is the responsibility of the Government to inspect the private business concerns in order to
make sure that they produce quality products, and also to prevent the production and sale of sub-
standard goods.

6. Incentives to Home Industries

It is the responsibility of the Government to encourage the development of home industries by
providing them various incentives and subsidies.
REFERENCES
 Mukaila, A. (2015). Nature, scope and purpose of business. University of Ilorin Press,
Nigeria.
 Robbins, S. & Coulter, M. (2016). Management, Upper Saddle River, NJ: Pearson.
 Bhatia (2005). Application of public finance, New Delhi printing press.