Business activity involves a number of functions. There are-
- Production involves changing natural resources into a product or the supply of a service. Most business resources are used up in the production process. Examples of production can be seen on a building site where house are constructed, in a dental surgery where dental treatment is given and in a coal mine where coal is extracted.
- Marketing has become very important in recent years due to an increase in competition in business. It is concerned with identifying consumer needs and satisfying them. Examples of marketing activities are market research, advertising, packaging, promotion, distribution and pricing.
- the finance department is responsible for the control of money in a business. It has a number of important duties. This includes recording transactions, producing documents to illustrate the performance of the business and its financial position and controlling the flow of money in the business.
- Dealing with inquiries, communicating message and producing documents for the workforce are all examples of administrative tasks.
- The human resources function involves the management of people. The personnel department looks after the welfare of the workforce and is responsible for such things as recruitment, selection, training, appraisal, health and safety, equal opportunities, payment systems and worker disputes.
- Research and development involves technical research, for example, research into a new medicine or a new production technique. R&D can be very expensive.