Business Studies

Meaning, Importance, Characteristics and Elements of Business and Management Studies

len Alfred Ajibola - 06th February, 2019 @ 11:37 AM

Topics in Business Studies

Advertising and Types of Advertising Land Mode of Transportation, its Advantages and Disadvantages Water and Air modes of transportation, its Advantages and Disadvantages Consumer Protection - Agencies of Consumer Protection Consumer Right and Protection Methods of Payment: Credit Cards, Debit Cards, Travellers Cheque, Bank Drafts - Advantages and Disadvantages Methods of Payment: Bank Notes, Coins, Cheques, Types, Advantages and Disadvantages of Cheques Meaning, Scope and Importance of Business Studies Meaning, Types, Advantages and Disadvantages of Business Structures Clerical Staff: Grades, Qualities and Functions of a Clerical Staff Characteristics, Examples, Advantages, Disadvantages and Principles of Double Entry Money, Disadvantages of Money Meaning, Importance, Characteristics and Elements of Business and Management Studies

Academic Questions in Business Studies

Please check out our Test Your Knowledge page to see all Questions and Answers

Which of the following is not a Right of Consumer Protection?

  • A. Right to Education
  • B. Right to Choose
  • C. Right to Safety
  • D. Right to the Good things of Life
  • E. Right to be Assured
  • F. Right to Compel

Which of the following is NOT a government agency of consumer protection?

  • A. Ministry of Sports
  • B. Ministry of Commerce
  • C. Consumer Protection Council
  • D. Ministry of Health
  • E. Ministry of Environment
  •  F. National Drug Law Enforcement Agent

Define Consumer Protection.

In buying and selling, the retailer will usually operate from the stall while the wholesaler operates from the _____.

  1. chain store
  2. hyper market
  3. hypo market
  4. warehouse
  5. mobile shop
  6. supermarket

What is Business?

Whenever you exchange something of yours for another thing or money, then that's business.

Business is simply defined as an economic activity

Business can also be defined as a process of exchanging goods and services between the buyers and sellers for the purpose of making profit.

Please read on the Types of Business Structure here

Goods and services are exchanged in business (usually for money) from one party to another.

In business, profit goes beyond money. It also includes other items or goods and services exchanged in the place of money.


Characteristics or Nature of Business

  1. The exchange of goods and services is always involved.
    Please read Meaning, Scope, Functions and Characteristics of Commerce.
  2. The goal of every business is to make profit.
    Please read on the importance of Business Studies here.
  3. The buyer and seller comes into a contract agreement.
  4. It involves risk from unforeseen circumstances like fire and flood.
  5. Goods and services are constantly produced as a result of business.
    You can read more on Production here.
  6. Business is a continuous transaction between the buyers and sellers.
  7. Investments are required to begin a business.
  8. Consumer goods and producer goods are involved in business.
    Please read on Consumer Rights and Protection here.
  9. Creativity and dynamism is required in modern business.
  10. They are subject to policies made by the government.
    Please read on Functions and Importance of Government.
  11. Nowadays, businesses have social responsibility to their respective customers.


What is Management?

A good business structure is highly dependent on how it is managed. The leaders in any organization or institution play an integral part in management.

Below are some definitions of the term Management.

According to Harold Koontz

Management is an art of getting things done through and with the people in formally organized groups.

It is an art of creating an environment in which individuals and people can perform with co-operation towards attainment of group goals.

According to F.W. Taylor

Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way.

For me, I will simply define Management to be the process of doing things and achieving goals with the input of other people.

Good management is a critical factor required for the development of a country or state.

If developing countries can be properly managed, businesses and other economic activities will thrive.

A good management will include the elements of management.


Elements of Management

Elements of Management are those necessities required to achieve the stipulated managerial goals. They include:

  1. Planning: This is the first step of management process. During the process of planning, we ponder on the following questions:

    what should be done?

    How should it be done?

    When should it be done?

    where should it be done?

  2. Staffing: This process involves acquiring the needed manpower for the job.
    Recruiting, Selection and The are carried out on those qualified for the job.
  3. Organizing: This element of management requires the rearrangement and harmonious adjustment of all activities.
    Through this process, the different sections required to effect the company's goal becomes well defined.
    Please read on Division of Labor here.
  4. Directing: it is a continuous process concerned with supervision, regulation and inspiration of all members.
    Decisions will be made and executed during directing.
  5. Co-ordination: This process lubricates all other managerial element so that the best result can be achieved. It functions to co-ordinate all the work done.
    The coordinator may not have to be too aggressive on the other team members if the best results are to be achieved.
    Please read on the Leadership qualities of Joseph here.
  6. Control: This process keeps all systems in check, making sure all is in order.
    Please read on the ways to reduce conflict in any Organization.
  7. Reporting: This process connects superiors with their subordinates.
    Reports can be given to the superior staff in a variety of ways. These include:

    Directly to them

    By Phone

    Through Electronic Mails (E-mail)

    Use of Social Media

  8. Budgeting: Budgeting is somewhat related to planning. It controls the future of the business.
    During budgeting, monetary allocations are made to different sections of the business.
    You can read more on Advertising here.
  9. Motivation: This process involves encouraging and inspiring the staff members to give in their best. The very act of motivation can maximize output.
    There are various ways to motivate staff; and one of such is by giving an extra allowance to staff who are deserving.


Importance of Business and Management Studies:

  • It gives one an edge in starting a business in a very competitive environment.
    Please read on how to start a home based fish farming.
  • It helps maximize the ideas of business strategy.
  • It enables business owners to comprehend and interpret various laws for starting a business in foreign land.
  • It enables one to comprehend the general rules regarding a specific type of business.
  • It provides knowledge on reviving a falling business.

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Alfred Ajibola is a Medical Biochemist, a passionate Academician with over 7 years of experience, a Versatile Writer, a Web Developer, a Cisco Certified Network Associate and a Cisco CyberOps Associate.

Amazing facts in Business Studies

The world's 💰💰💰100 richest people 💰💰💰  earned enough money in 2012 to end global poverty four times over

NOTABLE POINTS IN Business Studies

Consumer protection refers to the ways or methods through which consumers enjoy maximum satisfaction from the goods they buy and services rendered to them.

The agencies of consumer protection assists in protecting the consumer rights. These agencies may also be referred to as the organs of consumer protection. Basically, we have three of them, they are:

  1. Government agencies
  2. Independent agencies
  3. Legislation

Please read on Consumer Protection here

One of the responsibilities of the government of every nation is to set up agencies or organizations that will protect the interest of the consumers and invariably, the people.

Below are some of the Government Agencies of consumer protection

  • National Drug Law Enforcement Agency (NDLEA)
  • National Agency for Food, Drug Administration and Control (NAFDAC)
  • Consumer Protection Council (CPC)
  • Rent Tribunal
  • Ministry of Health
  • Ministry of Commerce
  • Ministry of Transportation
  • Ministry of Environment
  • National Wages and Salaries Commission

Please read on the Government Agencies of consumer protection here