Meaning of Industrial Unit / Business Units:
Business includes proper research, development, production and marketing activities. The organizations which undertake such activities are called industrial units or business units. Thus “Business is any enterprise which makes, distributes or provides any article or service which other members of the community need and are able and willing to pay for.” Business enterprises are often called “Business Firms.” It is a business unit / industrial unit within which productive resources are combined in order to produce goods and services as per the requirement of the customer for sale.
Business firms are normally started by entrepreneurs. There are chances that a firm will face loss, if it is started without proper project planning and doing feasibility study.
For society, business enterprises are very important, as all the essentials are provided to the society by business enterprises. Following points suggest close relationship between society and business units:
- Utilization of resources of the society.
- Creation of employment opportunities
- Provision of goods and services to the society
- Mutual support of business enterprises (dependency of other enterprises on these units)
- Tax revenue to the government
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