In the past, business activities were conducted at the family level, in private. The families at that time planted crops to meet the needs of foodstuffs, made their own clothes, made their own homes with the help of neighbors and so on. Their efforts are limited to only a very small field.
At that time it had not occurred to them to make a commercial effort, by borrowing capital for large-scale production. Then came the industrial Revolution that brought about a drastic and important change. The existence of a steam engine caused a change: on farms that had used plows, with the power of cows, buffaloes, now replaced with tractors and bulldozers are powerful.
Understanding business In the science of economy, a business is including a seller organization to sell goods or offer services to consumers or other business activities, who seek to earn a profit. Historically business words are derived from English called business, with basic words that mean “busy” in the sense of “being busy to do work and activities that can bring benefits” within the scope of community, community, or individual.
The function of a business is to create the value (usefulness) of a product, which was initially less valuable, once changed or processed into being able to meet the needs of society / consumer. Value utility (utility Value) created by business activities, so as to meet the needs of society is summarized in The main function of business.
The main function of a business is to create the value of a product or service by:
– Changing its shape (form utility), which is none other than the production function
-Move the place of the product (place utility), or the distribution function
– Transform ownership (possessive utility), sales function
– Delay time utility (time utility), or marketing function